LCI discusses municipal ‘hot spots’ as potential revenue source

Fri, 06/28/2019 - 8:30am

    Local municipal leaders learned June 25 how broadband expansion could create a stream of revenue. LCI director of Marketing Alan Hinsey explained how Rockland uses a broadband internet hot spot to promote local commerce. Hinsey said a Rockland Harbor Park hot spot sends iPhones immediate notifications with information about shopping, dining and pubs.

    “Coming ashore from a cruise ship, you hear that ping, and you get a message from our internet access network,” Hinsey said during the presentation in Boothbay. “There is a variety of advertising and marketing options available using this service.”

    The forum was attended by four selectmen from Boothbay and Boothbay Harbor and Boothbay Town Manager Dan Bryer. Kristina Ford and Desiree Scorcia of Boothbay were joined by Mike Tomko and Trish Warren of Boothbay Harbor who heard about using a public hot spot as a potential revenue stream. 

    Boothbay invited LCI officials to explain how municipal hot spots could boost local economic opportunities for merchants. LCI built Rockland’s Harbor Park hot spot location. The municipal hot spot provides limited free public internet access. Hinsey explained the free part is limited which typically provided park visitors a quick message about services available or advertisements for food and shopping possibilities. 

    He also indicated the public hot spot provided revenue opportunities for the network’s host or vendor. For the past three years, LCI has been the exclusive internet sponsor for five Rockland public events. The free service lasts about an hour, but the company offers day and weekend passes for a subscription. Hinsey described how a similar network could be developed in Boothbay Harbor’s harbor.

    Hinsey described the hot spot as a quick, reliable way to alert visitors to what the city has to offer. “Imagine passengers coming off a cruise ship hearing a ping welcoming and providing them information about where to shop or eat. It can also promote municipal events going on in the community,” he said.

    LCI placed five transmitters providing public internet access in Rockland Harbor Park at a $30,000 cost. For coastal communities like Rockland, Boothbay and Boothbay Harbor, Hinsey outlined four benefits of establishing a similar public internet network: Guests expect and look for free Wi-Fi; it's a convenient way to promote community events and sales; and as a marketing tool it creates a potential stream of revenue from advertising sales and day and weekend passes for extended internet access and revenue opportunities for the vendor or host who operates the service.

    “There are definite revenue possibilities,” Hinsey said. “You want limited free access to promote local shops and restaurants through advertising specials, but you also want to make money on this. So that’s why you can sell a day or weekend pass for extended use. You can also sell advertising. The options depend upon who manages the network.”

    Boothbay already has a hot spot on the Common. Broadband consultant Tom Myette described the local hot spot as a “missed opportunity” in generating revenue. Currently, the Farmer’s Market is the most prolific user of the hot spot for credit card transactions.

    Boothbay and Boothbay Harbor could further broadband internet hot spot availability in less than a year. Hinsey described how the region could expand high-speed broadband internet hot spots in a matter of months.

    LCI has a fiber footprint expanding from the Bangor region to Freeport. Boothbay invited LCI to clarify potential uses of a public Wi-Fi or hot spot network. Hinsey indicated LCI is interested in a franchise agreement to provide public internet in the region.