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Wireless Hotspots Heat Up: Page 3 of 12

• Service aggregators, like Boingo Wireless, Gric Communications and iPass, don't own hotspots but rather provide access to a range of partner networks, thus assembling a much larger footprint.

• National and regional WISPs (wireless Internet service providers), such as Hotspotzz, Surf and Sip and Wayport, are convinced there is a viable way to make money building a network one venue at a time.

• Free-access WISPs, many undoubtedly distant relatives of the FreeNet dial-up movement, aim to provide free Wi-Fi services to the masses.

For service aggregators and regional WISPs, there is significant pressure to partner through roaming agreements, a strategy that increases coverage footprints in what is often a mutually beneficial manner. However, as we learned in our RFI (see "Common Goals, Unique Strengths," page 43), it's not uncommon for the partnership to be one-way in nature. The fee an aggregator pays to allow its customers access to a carrier's network does not necessarily grant that carrier's customers access to the aggregator's other partner networks. That's one reason why aggregators offer the largest coverage footprint, an appealing model for organizations whose staff travel extensively. But you can expect to pay a premium for those services.

The Hotspot Value Chain