Wireless access for travelers has strings attached

The battle between free and paid wireless Internet access for travelers is starting to look like a draw. Or more accurately, a third variation is winning — a combination of the two.

Travelers want to log on everywhere at no charge, while hotels, airports and coffee shops are looking for a way to pay for their Wi-Fi networks as visitors increasingly use greater amounts of bandwidth.

The compromise that is emerging is to offer both free and paid options, with the free services increasingly requiring something in return, like viewing an advertisement or signing up for a loyalty program.

Starbucks is probably the biggest example of that model. In February, the company announced plans to switch to AT&T from T-Mobile as the Internet provider in its 7,000 stores. When AT&T takes over, customers who use their Starbucks card once a month will get two hours of free Wi-Fi access each day. Otherwise, that same time period will cost $3.99, or $19.99 for a monthly unlimited-access plan.

Omni Hotels, which used to offer free Wi-Fi, switched to a dual-pricing model about 18 months ago. Now, guests can get free in-room wireless access by signing up for Omni's Select Guest program, an option that appears on screen when guests try to log on. The alternative is to go to the hotel's lobby, where wireless access is free, or pay $9.99 for 24 hours of in-room use.

Richard Tudgay, the company's vice president for technology, cited increased Internet use as the main reason for the change. "We've gone from 12 percent of our guests using it in the beginning of 2003 to 46 percent in the beginning of 2008," he said, which has required upgrading each hotel's network.

Omni is a smaller hotel chain, so it is not clear whether this model will spread to larger chains. Companies like Marriott typically offer free Wi-Fi at brands that have lower room rates and fewer rooms, like its Courtyard by Marriott, Residence Inn and Fairfield Inn hotels, but charge for Internet access at the larger, more expensive hotels.

"When you're talking about a 1,000- or 1,500-room hotel, there are many more complications involved," said Marriott spokesman John Wolf. "The infrastructure is more expensive to install and more expensive to maintain."

Denver International Airport switched from a paid to an ad-supported model in November, and has seen use increase from 600 connections a day to more than 5,000.

McCarran International Airport in Las Vegas subsidizes the cost of its free-access Wi-Fi with revenue from sponsored battery-charging stations and plans to display more advertising during Web sessions this year.