Revenue from visitor-based network (VBN) services will reach $1.3 billion in 2006, up from $15 million in 2001, according to a new study by IDC. The implementation of a VBN presents new business opportunities for location owners – not only generating new revenue streams, but also increasing average length of stay, reducing customer churn through increased satisfaction and enhancing the location’s image.

"Locations with many international business travelers such as hotels, airline lounges and airports will be the first to offer broadband access services to their visitors," says Jan Hein Bakkers, an IDC research analyst.

Hotels will be the largest segment of the VBN industry, generating up to $855 million in additional revenue by 2006, with the opportunity for fixed and wireless VBN equipment vendors to reach its peak of $213 million in 2005. By 2006 there will be more than 17,000 locations in Western Europe offering visitors broadband access services.

More than 70 percent of these locations will offer wireless LAN services or a combination of fixed and wireless services. Visitors to these locations will log on to VBNs more than 145 million times in 2006.

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