Hong Kong hotspots get cool reception


Pacific Coffee Company has over 20 branches designated as "wi-fi hotspots"

By Ravi Hiranand
CNN Hong Kong

HONG KONG, China (CNN) -- Hong Kong Internet service provider Netvigator doubled its tally of wireless Internet "hotspots" in the city last month.

But far from heating Hong Kong up, hotspots have got a cool reception from potential customers in this tech-savvy city.

Netvigator's hotspots are located in malls and cafes across the city. They let users with a laptop equipped with a "wi-fi" card surf the Internet at broadband speeds, without wires.

Hong Kong coffee-shop chain Pacific Coffee Co. has designated over 20 branches as wireless hotspots. But customers and staff alike know little about the feature.

Customers just work in the office

At one coffee shop in the Quarry Bay area, manager George Chu admitted he wasn't very familiar with what his store's Netvigator hotspot did.

"I don't know too much about it," he told CNN.

Signs on the tables alerting customers to the hotspots often get overlooked because customers put their order over them.

Ian Stone, a consultant for Pacific Century CyberWorks, said he has noticed a few people using the service in the café -- but not many. He called it a "niche" service.

PCCW is Netvigator's parent company. But Stone, who was working on old-fashioned paper in Pacific Coffee, said he prefers to use the computer in his office.

Easy to use

One of wi-fi's advantages is that it's easy to use. Customers select PCCW's service from their wi-fi card's software and open a Web browser. They then fill out a registration page that requires only an e-mail address.

Netvigator is not alone. Rival ISP i-cable has developed hotspots in malls overseen by its parent, Wharf.


Many Hong Kongers have broadband service at home, and customers told CNN they prefer to work in the office

A CNN test of Netvigator's hotspots around Hong Kong's Island East office complex showed the network delivered what it is advertised to do.

PCCW is based in the complex, which also houses CNN offices. PCCW did not respond to calls from CNN for comment on this story.

Netvigator's selling points are the hotspots' stable connection and broadband-type speed, much faster than the alternative for connecting to the Internet on the go, via a cell phone.

Hong Kong property company Swire provides Netvigator's service for free to companies like Pacific Coffee, in select business and commercial complexes.

Gateway to the mobile office?

But Swire played down the service as another extra. It does not yet have an idea how many people actually use it.

"It's a value-added service for our customers," spokeswoman Jenny Tam said. "If people from our buildings or visitors need to send urgent e-mail, they can do so. It gives them a more mobile office."

Customers in Pacific Coffee, who could use the hotspot for free, were still unsure whether they wanted a mobile office.

Nearby, two wired computers also offer free Internet access for customers not carrying laptops.

"I've just come down here for a few minutes to get a coffee," Stone said. With his office upstairs, he said he didn't need to keep in constant contact via e-mail.

Swire has offered the service for two months but hasn't collected data on it yet.

Future rosy for wi-fi

It is still an unusual sight to see people using laptops in public spots in Hong Kong, though they are often used in offices. Many Hong Kongers also have broadband service at home.

But wi-fi hotspots are already popular in the United States. They are seen as a hot trend for the future in Asia, despite the initial cool reception.

According to research by IDC, the global market for wi-fi was $1.5 billion in 2001. That's expected to more than double to $3.7 million by 2006.

Hong Kongers agreed wireless broadband will become bigger given time.

"Wireless is the future," Darius Cheng, an investment consultant, told CNN. "When I buy my next laptop, whether it has it [wi-fi] or not is one of my main considerations."

"As coverage improves, it'll be second nature, just like mobile phones," Stone agreed.