Exclusive: Boingo Wireless Expands Network Capabilities

boingo wireless

Internet Wi-Fi provider Boingo Wireless, Inc. (WIFI) has recently introduced a new-tiered service with hopes to increase its streaming capabilities on its network.

The company is banking on users paying a premium to access ultra fast connectivity in the airports they serve. The new offering should allow greater access to Streaming services on the wireless platform, providing a more at-home like Internet user experience.

As more internet users have become increasingly reliant on streaming in general, Wi-Fi intends to capitalize on this increasing need by offering its fastest service to date.

boingo wireless

As you can see the Google Trends chart above streaming services have exploded in popularity in the past year.

The initial launch of its new service got introduced at seven major US airports including New York (JFK & La Guardia) and Chicago (Midway & O’Hare). The new SMART network, will allow airport users to pay for increased connectivity; at speeds ranging from 20Mbps to 50Mbps.

This move expects to increase accessibility to streaming services on its network, which was not feasible at the speeds that were previously offered.

The company is banking on users paying a premium to access ultra fast connectivity in the airports they serve. The new offering should allow greater access to Streaming services on the wireless platform, providing a more at-home like Internet user experience.

 2015 Shows Mixed Reviews

Boingo wireless stock lost over 11% in 2015.  A primary reason for the WIFI decrease was because the company lost significant revenue in its retail segment. In Q3 alone, its retail revenue decreased 23% Y/Y. The new offering of its fastest internet service intends to reverse this negative trend. We expect WI-FI to continue to introduce its SMART service to at the 70 domestic airports it currently operates in.

Military Sees Explosive Growth

Boingo’s revenue comes from providing Wi-Fi services (airports, universities, stadiums, military bases), DAS management and operation, and advertising. Revenue in Q3 increased more than 20% year over year and Military revenue growth was particularly compelling as the fastest growing segment of the company, a 450% increase in the last year. This explosive growth will be a key element of the company’s future as it expands its presence to military bases nationwide.

While the company is undergoing a reorganization that is seeing the removal of the company’s president Nick Hulse, Boingo is hoping the new offerings and expansion of airport and military presence will breath new life into the stock moving forward.

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