Chinese Public Transit WiFi App Shuts Down in 11 Cities

Updated:2017/2/20 16:15

16WiFi, a hardware interface and mobile app that bring wifi service to China's public transit systems, has decided to temporarily shut down its service in 11 cities including Shanghai, Guangzhou and Shenzhen and to keep that in Beijing and Kunming only as model cities.

The company did that due to the high cost, obstructed backward operation mode and no financial support from the government.

Despite an investment of nearly CNY600 million in 16WiFi, the company should spend about CNY100 million in one year in Guangzhou purchasing data flow and labor costs including technical operation and maintenance from the carriers and on hardware and media fees. Thus a shortage in cost happens. Owing to the price decrease of mobile data traffic and other reasons, APP downloads haven't lived up to the company's expectations, which can't offset the huge cost.

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