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March 4th, 2007

The economics of free wi-fi

By matt buchanan

$tarbux
Today’s NYT has an articleabout the economics of providing free wi-fi to customers, and looks in particular at Starbucks, McDonald’s and Panera. The first uses T-Mobile Hotspot for its wireless, which is not free (though I am using it right now, gratis, as part of a Vista promotion that gives you free access until May). McD’s charges $3 for two hours of access (unless you have a DS), and the latter provides its service free to snag the post-lunch-rush crowd that tends to linger.

It never comes right out to say it really, but in its conclusion the piece indirectly calls on $bux to bring on the free intertubes, as a kind of homage to the service movie theaters provided in the past.

Of course, I agree with that sentiment. I usually patronize Think Coffee on Mercer almost exclusively if I intend to stay on the premises for a bit (Joe is the way to go on the go) because it offers free wifi and (recently) solid espresso drinks, but its internet has been down for a week. So I bought a $2 bottle of water at SB to make the most of my free internets. I’m bitter that I would usually have to pay for internet access, so that’s all they’re going to get from me. At Think, I make it a practice to buy something at least once hour, be it refill or granola bar, and that’s generally how I operate - I feel like it’s the moral high ground.

I’d do the same at ‘bucks if they let me go intertubing for free all the time. I realize that leeches who make no such patronage exist, and it’s a risk, but if independent shop owners can offer it, why can’t a huge corporation that’s growing faster than McDonald’s do the same? Oh, and make better fucking espresso. Automatic espresso machines are the lose.

This entry was posted on Sunday, March 4th, 2007 at 2:37 pm and is filed under Opinion, Functionally Obsolete. You can follow any responses to this entry through the RSS 2.0 feed.

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