As we continue to see new wireless offerings for RVers and RV park owners, our earlier prediction of confusion in the marketplace seems to be playing out. Most RVers are still uncertain of what they need to do to take advantage of wireless high speed internet opportunities; and park owners are unsure of when, whether, and which service provider to "commit to".

New Trends in "Hot Spots" and "Free Spots"

In other commercial contexts we're seeing an explosion of "Wi-Fi" availability. One of the first examples was Starbucks Coffee establishments providing wireless internet connections in their many locations around the country. The theory apparently is that by providing wireless access, they could attract more customers to their establishments to sip and surf at the same time. And by charging for the wireless connection they would establish a new source of revenue from their existing customers. At our own marina in Friday Harbor there has been a wireless offering for boaters for the better part of a year. Locations that offer a wireless high speed connection are often referred to as "hot spots". The wireless services are available for a fee by signing up by the hour, day, week or month. The entire process of "signing up" can be done online, locally, wherever the service is available. It appears the rates charged vary wildly, depending on the service provider -- essentially for the same quality of service.

However, there's a less well-defined second trend developing as well: The offering of "free" wireless services. Like fee-based "hot spots", these have attracted their own name too -- "Free Spots". The theory of free spots is that a business can attract more customers by offering free wireless access at its place of business, and that the increase in customers will more than offset the relatively modest cost of providing the service. Apple computer saw that opportunity early on, and now all of its major company stores (and many of its resellers) offer free wireless connections at their locations. And reportedly one of Starbucks' competitors has a market plan to offer free wireless surfing along with sipping its own brand of coffee, seeing the wireless enticement as a marketing opportunity rather than a new revenue source. With one charging a hefty hourly fee, and the other offering the same service without charge, where would you likely go for your morning brew?

We saw yet another bit of empirical evidence recently while traveling through the popular small town of Winthrop,WA. During the summer months this small community has fashioned itself into a unique "small Western cowboy town", hosting frequent rodeos and all sorts of outdoor musical events. The local newspaper carried a story about plans to install a "community wireless" system for tourists visiting Winthrop during the busy tourist season. Obviously the town fathers must consider a community wireless offering an enticement to those who might opt to mix some sounds with some surfing.

While free wireless access can hardly yet be described as a "trend", its implementation found its first home in the RV park industry. Fidalgo Bay RV Resort in Anacortes -- a park where we frequently stay -- is in the test stages of its own in-park wireless DSL service. We've subsequently found free wireless service at Blackwell Island RV Resort in Coeur d'Alene, Idaho. And yet another park in that area, Granite Lake RV Resort in Clarkston, WA has announced its intention to offer free in-park wireless beginning next season. These parks have apparently concluded that the cost of the required equipment to transmit a wireless signal is relatively modest, and decided to offer it as a guest amenity. They preferred that approach rather than having a third party provider come into the park, furnish the equipment, and collect what can be hefty usage fees. (The increased number of "free spots" has resulted in the creation of a useful new website that provides an up to date listing of all free wireless access points both in this country and elsewhere.)

[Ed Note: We do not take the position that parks should provide wireless access at no cost to RV guests. For purposes of being listed at this site as a "High Speed Enabled" park we only require that any fees charged be "reasonable". While it is difficulty to quantify what is "reasonable" at this early stage, judging from some service options that are priced at under $3 per day, $12 per week, and $21 per month we think costs considerably in excess of these benchmarks may stress the limits of "reasonable".]

Who are the Interested Players in the Context of RV Parks?

It may be useful to identify just what interests are at stake in the evolution of in-park high speed internet access.

Park Owners: While the move to providing dial up access at RV parks evolved over a period of several years, it is certain the move to wireless will be much faster. That's because RVers now typically travel with laptops, have become reliant on electronic communications, and expect RV parks to provide them with modem access. And now with high speed access almost commonplace, large numbers of RVers will be attracted to parks that offer fast connection speeds, and don't require them to "wait in line" for the single phone line in the laundry room. A high speed signal distributed wirelessly throughout the park seems to be an ideal solution. And it can be accomplished with only a very modest investment -- or for no investment at all (where the arrangement calls for the service provider to furnish the equipment an DSL line). Parks should be motivated to provide this type of amenity because it will attract more guests to the park. But it will only do so if the service is easy to use, uses the most current technology (yes, it is likely to change quickly), is well supported, and is provided at a reasonable price. As RVers become more familiar with the mechanics of wireless networking (how to configure their own laptops to use wireless networks), "reasonable price" will predictably become the key factor.

Wireless Service Providers: What constitutes a "reasonable price" is precisely where the interests of park owners and service providers are strongly opposed: The service provider wants to charge as much as possible (per hour, per day, per week, or per month) because that's how they make their profit. They see RV parks as a juicy new source of revenue for them -- and the higher the price, the better the revenue. They have little interest in whether their RV park customers will in time lose business because their wireless rates are on the high end of the scale, causing many RVers to opt for parks that have negotiated rates more favorable to their customers. Indeed many of the wireless service providers are promoting their brand of wireless service on the basis that they'll offer RV parks a "cut" of the revenue pie -- and a new source of income. But this can only be at the expense of RVers who will pay much higher rates -- but only until they learn another nearby park charges much less, or has chosen to provide wireless access as one of the amenties included in the daily rate. It is for this reason that we think RV parks should avoid all arrangements that offer to share revenue, because RVers will soon realize that such parks have in effect "raised the rates" for all RVers who opt to use the park's wireless network.

RVers: Because such a high percentage of RVers now travel with laptops, and rely on internet connections for communications, information, and personal needs such as banking and shopping, high speed access will quickly become a major factor in choosing an RV park. Their interest will be in easy-to-use, reliable service that is provided at the lowest possible price. We were surprised to learn from past surveys how strongly RVers reacted to charging a fee for modem access. Many stated they would always look for parks that were "modem friendly" -- i.e., did not charge a separate fee for modem access. Usually where a fee was charged, it was fairly nominal -- usually less than one dollar. While we suspect RVers will be willing to pay a "reasonable" fee for wireless access (just as they would for an instant site phone hookup), it will not take long for them to recognize that some parks are are charging an exhorbitant daily rate, while others are offering exactly the same service for a much more reasonable fee -- or for no fee at all. *****

The Current Status

Because we've been following this issue closely, we've had conversations with a number of our park owner readers. Many are having to deal with solicitations coming from multiple vendors of fee-based wireless services. Because the technology is so new, parks are in many cases understandably confused in evaluating these competing proposals. On the one hand they don't want to be "left out" by not offering the latest amenity that is sure to attract a growing number of RVers. But for some, wisdom is found in not "rushing to judgment" on whether to offer a wireless service; and if it is to be offered, which vendor to use. We think the prudent course for park owners is to make sure they understand all the options availble to them, and not enter into long term contracts that will commit them to a specific technology and a particular rate structure for a period of years. Because if they "choose the wrong horse", they may well find themselves at a serious competiive disadvantage to parks that go with a service that is more reasonably priced, uses the best of the evolving current technologies, and provides complete support for an easy to use service.

It appears we're only seeing the tip of the iceburg in the implementation of Wi-Fi services. It should come as no surprise that many park owners will find decisions concerning the implementation of in-park wireless services at best a challenge. We hope they will take the time to understand not only the technology, but the very significant differences among choices for service providers. And we hope they will be guided in their consideration by services that offer the lowest possible daily, weekly, and monthly cost to RVers; are well engineered to provide adequate signal strength throughout the park; are "easy to use"; and provide quality 24/7 toll free support.

We will continue to update our observations on this evolving technology as events continue to unfold.

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