San Jose International Airport now provides free WiFi. It’s available in all public areas of both Terminal A and Terminal C. Later, free Wi-Fi will be included in the new Terminal B and North Concourse.
SJC is the first airport in the Bay Area to offer air passengers free WiFi, reports KCBS. The service was launched Friday morning. The goal of the service is to make San Jose the choice for Silicon Valley business air passengers. The WiFi is being paid for through online advertising and sponsorships.
“The revenue we get from advertising and sponsors will pay for the actual operation and installation,” explained airport spokesman David Vossbrink. “It has the potential for giving a little extra revenue over time.” They are partnering with Beaverton, Ore.-based Airport Marketing Income and AnchorFree, a Sunnyvale-based company, providing the advertising network (below).
The network, called SJCfreewifi, will compete with the airport’s fee-based Wi-Fi networks T-Mobile and Wayport. The airport’s cut of the profits from those networks is $139,000 a year, said communications director David Vossbrink, and that sum will decline if passengers opt to use the free service.
The airport spent $90,000 for the hardware, folding the Wi-Fi installation into the current airport renovation. The annual cost for broadband will be $41,000. The airport gets about 30,000 passengers each day, so officials estimate at least 1,000 people a day will use the free Wi-Fi.
If the 1000 daily users (X 350 days/yr) = 350,000 users/year, then perhaps they view (collectively) 1 million advertising impressions. If each of the 1 million impressions cost 10 cents each, then it might generate annual income of $100K/year.
Viewed another way, $100/day equals $36,500/year. So revenue would need to be approximately $250/day, or around $60-$80/day for 3-4 advertisers. That seems high to me. Half that fee seems more realistic.
Perhaps that’s why Microsoft’s Sideguide (left), with constantly changing ads and with context and historically aware insertion, was preferred by MetroFi.
It still seems like a legitimate model to me. If not for an entire city, then for downtown cores or high traffic areas. Newspapers ought to move right now.
Mobile WiMAX is more cost/effective — and could make it work. This year, baby. This year.