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US Internet Users Primed for Municipal Wi-Fi

One-third of US Internet users express interest in municipal Wi-Fi - and would switch from their current ISP to publicly subsidized internet services - according to a recent study from Ipsos Insight, MarketingCharts reports.

Interest in Wi-Fi is highest among those age 18-34, indicating it likely has stronger appeal with the more youthful, early-adopter market.

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Of those adults who are interested in jumping to muni Wi-Fi service, an equal percentage indicated they would sign up for the speedier premium service that would require a reduced monthly fee (40 percent) as would sign up for the slower free wireless service option (40 percent).

In contrast, the majority of those (>60 percent) who either rely on dial-up connections at home right now or do not have internet access at home would opt for the free-service. Migration of current dial-up users to Wi-Fi-based broadband may represent an attractive expansion of rich media and location-specific advertising targets for some market players, according to Ipsos.

"The volume of users that could migrate to municipal Wi-Fi access has the potential to disrupt the online status quo in the US, since users would not only likely switch Internet service providers, but […] their current homepages and web search preferences as well. This also could include a greater focus on location-driven search requests and results," said Adam Wright, Director with Ipsos Insight's Technology and Communications practice.

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While a third of today's Internet users are interested in muni Wi-Fi, those who already own wireless devices are most likely to consider making the service transition. Nearly half of all notebook owners (47 percent) and MP3 player owners (45 percent) would also sign up for municipal wireless Internet service.

It would seem that the potential market for muni Wi-Fi service grows with every new notebook PC or Apple iPod sold - an implication device of which manufacturers appear well aware. Nearly all notebook PCs today include built-in wireless cards, as do many of the new wireless gadgets on the market, such as Sony's PSP, Microsoft's Zune and Apple's upcoming iPhone, Ipsos points out.

All of this seems to be changing the mindset of today's technology users, explains Wright: "The device culture in the US is changing rapidly, as more households adopt notebook PCs and other wireless devices, and begin to realize the virtues of wireless internet connections. This will likely spawn increasing consumer demand for and expectation of widespread wireless internet services in the communities and cities they live in.

"Conceptually, municipal Wi-Fi service presents a very compelling offer to today's internet users - universal wireless connectivity at a subsidized rate."

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