iPads affect the future of hotel Wi-Fi

Hotels are at a crossroads because of the iPad, says a report from the New York Times. Travelers armed with iPads are taxing WiFi internet connections and causing problems for hotels that want to provide reliable internet service for their visitors.
This bandwidth crunch is the result of iPad owners who use their tablet to stream video, browse the internet and work remotely from their hotel room. David W. Garrison, the CEO of iBAHN, a global provider of digital information systems for hotels, says hotel bandwidth consumption has increased threefold in the past year alone. Dedicated internet service providers can handle this increase, but many hotels have slow internet connections that are easily swamped by this jump in consumption. And this is only the beginning of the iPad problem for hotels. Apple confirmed it has sold 11 million iPads in the past three months and the Gartner Group predicts the total number of iPads in circulation will rise to 100 million by the end of 2012.
Hotel owners will have to decide whether they want to continue offering WiFi service to their visitors that's inexpensive to provide, but excruciatingly slow or pay to upgrade their bandwidth and institute a paid tiered service for their customers. Customers might frown on paying a meter-based fee, but many don't like encountering poor internet connectivity when traveling either. Over 2/3rds of business travelers surveyed by iBahn said they would not return to a hotel that had a poor internet connection. According to Garrison, only 10 to 15% of hotels offer tiered service; for the remaining 85 to 90%, it's time to cough up the cash to improve connectivity or stop offering a dysfunctional service that's hurting their business.
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Hotels are at a crossroads because of the iPad, says a report from the New York Times. Travelers armed with iPads are taxing WiFi...
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I have to call BS on this one.
Bandwidth costs over the past decade have plummeted. Five years ago it was unheard of to get Ethernet (10/100/1000) from a telecom provider without a massive investment. Now? In major metros I would be surprised if the hotels didn't have a choice of three + providers of service.
The biggest cost of the wi-fi build is the actual build. Additional monthly bandwidth costs can easily be incorporated into the hotel fee structure.
Got a great idea, stop dropping off the crappy paper that I will never read and dump the $1/night aggregately into a bigger pipe.
Brian, you've got the cost part right. The initial build-outs for a solid wifi network can be quite expensive. Depending on a hotel's construction, it can easily break into the tens of thousands of dollars (concrete and steel does not play nice with wireless). An access point every 2-3 rooms, per floor, costs lots. And you can't just go with random off-the-shelf, residential grade equipment.
Bandwidth is more a matter of availability, not expense.
As someone who works in the industry, I find some of the attitudes and perceptions here quite uninformed. Do you know how many hotels are finally able to, if very lucky, get something better than satellite internet? And you're talking about shared internet service. Take a 150 room hotel. Say 50 people using the connection. Now add all their devices (tablet, phone, computer, possibly more). Then start streaming Netflix, crank up the bittorrent client, play some games, browse the web...
Just how far do you think a DSL connection is going to get you?
DOCSIS 3 availability is limit, as is fiber to the premises or even curb. When the best available option is a 7Mbps DSL/cable solution, what more do you expect? It can only get chopped up so much before it turns to garbage for everyone at the hotel. It's not your home connection, it's not just a few family members using it.
I have no doubt that wi-fi demand in hotels is increasing, partly but not entirely driven by increasing iPad usage. However, when I regularly have to pay 10x the cost for 1/10th of the speed that I get at home, my sympathy for Mr Garrison and his ilk is minimal. They must be making bucket loads of money at the moment so funding investment in capacity to meet demand will be easy.
Incidentally, I believe that the hotel chains "sell" the right to provide internet access to iBahn et al which is why they sometimes deny responsibility for the quality.
People travel. A lot more than they used to. People in the travel business need to get on board with this. Travelers want 2 simple things:
• Fast *and* reliable internet. We're *going* to stream video, play games and video chat.
• Easy access to outlets (I'm looking at you Airport terminals)
Give us those 2 things, and you'll have a strong base of repeat customers.
Hotels should just add a charge to nightly rates & increase their bandwidth to support an excess of data usage. In 5 years, the usage rates they're complaining about now will triple again. So they better get their act together before consumers find alternatives because of the "small" things!
October 27 2011 at 12:32 PM Report abuse Permalink rate up rate down ReplyReally? Are you folks serious? Hotel's have ALWAYS been taxed delivering Wi-Fi long before the iPad was a twinkle in Apple's eye...
October 27 2011 at 12:20 PM Report abuse Permalink rate up rate down ReplyHotel Wi-Fi is garbage. I travel a lot too, so its always been annoying to have mediocre internet access that costs a lot of money for no reason. I bought myself a Verizon 4G MiFi and I love it. Stable connection even with multiple devices running off of it.
October 27 2011 at 11:37 AM Report abuse Permalink rate up rate down ReplyWhy don't hotels offer the tiered structure with the current service at the bottom remaining free? The more you pay, the faster service you get. That way, people who aren't heavy users still get to check and send emails for free, but folks who aren't satisfied with poor cable options and MUST stream Netflix in their hotel room can pay a small fee to get blazing fast internet.
However, this all brings to mind the question, why are are people spending that much time in their hotel rooms? It could be a sign that they need to get out a bit!
Some hotels already do this...but it's a joke and they structure it to make it unreasonable (really...$40/night for unfettered/multi-device access?)
October 31 2011 at 11:55 AM Report abuse Permalink rate up rate down ReplyI'm going to call this iPad argument a bunch of BS. I can count on one finger the number of times I've had a decent internet connection speed in the last 5 years, long before the introduction of the iPad. The issue is that hotels feel the need to compete but aren't willing to spend the money necessary to guarantee even low-end DSL speeds when booked at minimum capacity. Complaining that this is a result of the iPad is a complete fabrication.
October 26 2011 at 11:34 PM Report abuse Permalink +1 rate up rate down ReplyThis is the email I sent iBAHN about the note above. Also, how can they us "i" BAHN without getting Apple irritated?
I saw the article below quoting David W Garrison, the CEO of iBAHN.
http://www.nytimes.com/2011/10/25/business/ipads-change-economics-and-speed-of-hotel-wi-fi-on-the-road.html?_r=1
I have concerns when I see iBAHN as the internet service provider at a hotel.
1) iBAHN's login is not tablet friendly because most of my internet traffic is through APPS and not WEB Based. Therefore, having to browse first to activate a connection is aggravating.
2) The legal mumbo-jumbo is just that - crap! If I need to connect my laptop with server powers, including a briefcase RAID, I will be running my server.
3) I have an APP that tells me my connect speed. If it is less than 25 over WI-FI or 50 hard wire, the hotel is on my DNR (Do Not Return) list. I also file a complaint at the front desk on check-out with a 10% refund for "in-effective Internet service."
Tiered surcharges are also laughable. I can pay for a huge number of GB over my cellphone hot-spot for much less than a day's Internet charge in some upscale iBAHN provided Internet properties.
How will your service keep me at the hotels you serve?
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