A hotspot is a physical location that offers internet access over a wireless LAN through the use of a shared internet connection and a single router. Hotspots can typically be found in coffee shops and various other public establishments throughout much of North America and Europe.

Free Wi-Fi hotspots

Free hotspots operate in two ways:

• Using an open public network is the easiest way to create a free HotSpot. All that is needed is a Wi-Fi router. Private users of wireless routers can turn off their authentication requirements, thus opening their connection, intentionally or not, for sharing by anyone in range. The disadvantage is that access to the router cannot be controlled.
• Closed public networks use a HotSpot Management System to control the HotSpot. This software runs on the router itself or an external computer. With this software, operators can authorize only specific users to access the Internet, and they often associate the free access to a menu or to a purchase limit. Operators are also now able to limit each user's available bandwidth - each user is therefore restricted to a certain speed to ensure that everyone gets a good quality service. Often this is done through Service Level Agreements.

Commercial hotspots

A commercial hotspot may feature:

• A captive portal / Login Screen that users are redirected to for authentication and payment
• A payment option using credit card, PayPal, BOZII, iPass, or other payment service
• A walled garden feature that allows free access to certain sites

Major airports and business hotels are more likely to charge for service. Most hotels provide free service to guests; and increasingly small airports and airline lounges offer free service.

Roaming services are expanding among major hotspot service providers. With roaming service the users of a commercial provider can have access to other provider's hotspots with extra fees, in which such a user will be usually charged on the basis of access-per-minuite.