Mobile working Toolkit

Wi-Fi and fries?

Richard Shim CNET News.com

Published: 12 Mar 2004 15:25 GMT

McDonald's doesn't expect to earn money initially from its Wi-Fi service. It hopes instead to attract more customers and sell more burgers and fries.

Increasing the number of visitors to its restaurants is important as the company looks to boost its revenues after a troubling 2003, when it reported its first-ever quarterly loss. And with increasing scrutiny of the nutritional value, or lack thereof, of its food, the company has shown itself to be receptive to new ideas.

McDonald's says it is looking to attract what it calls the "road warrior" or "windshield warrior," who is someone who spends a lot of time away from the office, such as real estate agents or regional sales people. And McDonald's has a real estate advantage there, according to Dan Lowden, vice president of marketing at Wayport.

"It's all about getting to the right locations," said Lowden. "A lot of their locations are convenient to that audience because they're right off major roads."

But charging the right amount will also be important. McDonald's and its partners have tried a number of strategies for payments, such as offering free service for a limited time period with a meal purchase. Pricing has differed in each of its locations. The company has been bullish on urban areas and has said it won't offer the service in all its restaurants. Final pricing and locations are still being determined.

The negotiations are ongoing, but several analysts familiar with the McDonald's efforts said they believe Wayport appears to be the frontrunner for winning the bulk of the company's hot-spot business. Business as well as technology issues are on the table. Still to be settled are key terms of the contract, including the revenue-sharing plan and who will pay equipment and set-up costs.