On September 25, 2003, Billing Concepts announced a landmark settlement service that will dramatically expand the Wi-Fi based public wireless Internet access market. BCI's new product, eZ-Wi, is the first independent clearing and settlement service connecting the customers of Internet service providers (ISPs) with Wi-Fi venue operators. eZ-Wi offers customers of participating ISPs the freedom to use their existing account to access the Internet at all participating hotspots.
The eZ-Wi business model differs from current public wireless Internet offerings. It allows customers to connect at hotspots anywhere and have charges for those connections reflected on their home or office Internet bill. As a neutral third-party, eZ-Wi is also distinct because it does not encroach on the branding efforts of ISPs or venue operators.
This new service offers benefits to the entire value chain in the public wireless Internet market:
- Consumers will gain the ease of a single Internet access provider relationship, increasing satisfaction.
- Internet service providers will benefit from a wholesale access model at no net cost, which improves customer loyalty and reduces churn.
- Hotspot owners will earn revenue from selling Internet access to a broader customer base.
By serving as the third-party clearinghouse, eZ-Wi will mediate compensation agreements between ISPs and hotspot operators. The current pricing model is scarcity driven with limited hotspots and closed networks charging what the market will bear. With eZ-Wi opening the market and creating a greater demand for wireless Internet services, consumer adoption is expected to increase, resulting in lower prices for public WLAN Internet access. eZ-Wi will ultimately enable ISPs to bill the customer directly on their monthly Internet or phone bill as an add-on feature.