South African airports, hotels, shopping malls, restaurants and coffee shops can significantly increase revenue streams from business travellers - by millions in the case of larger organisations - with high-speed Internet access over a wireless (WiFi) network, says IBM.
An IBM business case for international airports projects an average increased annual income of R60 million from just 10% of 20 million business travellers passing through a single airport`s departure and arrivals halls.
The study shows that in order to generate such revenue, an airport would need to install a public wireless local area network (PWLAN), allowing travellers with wireless enabled notebooks and handheld devices to dial in to the Internet or their corporate private networks.
Because it is reasonably priced and easy to install - installation would take less than a month and costs only R350 000 - the PWLAN can provide a return on investment in less than nine months.
However, in South Africa Telkom remains the only operator licensed to provide WiFi technology.
The second national operator will also be allowed to use the technology once it becomes operational, but until it is active, Telkom remains the sole provider of the technology, despite protests from other parties interested in setting up hotspots.
Several of these interested parties have called on the Independent Communications Authority of SA (ICASA) to overhaul its licensing system to allow South Africa to keep up with global developments.
IBM SA`s senior networking and connectivity specialist, Giovanni Venturella, says the company has based its SA business cases on the experience of 119 IBM wireless hotspot installations worldwide, as well as on research done by the international Wireless LAN Association (WLANA).
"For instance, we did the installation for Europe`s first hotel to go with a wireless hotspot, the Okura in Amsterdam. Since going live in May this year, the hotel has seen a 10% increase in customer satisfaction and a 50 000 euro increase in revenue.
"And WLANA`s statistics have proved that the return on investment on wireless hotspots in the travel industry never takes longer than nine months."
He says traditional products in the travel industry, such as hotel rooms, food and beverages and airline seats, are no longer enough to ensure customer loyalty and repeat business.
"Technology savvy customers, like business travellers, prefer venues that can ensure they are always connected. IBM itself, for instance, always routes its mobile workers through hotspot-enabled hospitality venues."
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