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story category Fon Cuddles Up To British Telecom
(old news - 02:09PM Friday Oct 05 2007)
tags: business · wireless · hardware
If you recall, startup Fon aimed to build a global network of one million wireless hotspots by the end of four years. The idea was to convince users to install Fon firmware on their Linksys residential routers, turning them into a unified community of global hotspots. The network is currently 190,000 hotspots strong.



The Spain-based operation offered three levels of participation: "Bill" users get a cut of whatever profit is made via their hotspot but cannot use other Fon hotspots for free. "Linus" users get to use any hotspot, anywhere, for free. "Aliens" are just customers, and pay to access to the hotspots.


The somewhat original idea (see Linspot) received a lot of hype from bloggers with financial ties to the project not long ago (see WSJ, 2/9/06), combined with hefty investment from Google and Skype (to the tune of $21 million). The business model has some holes, namely that free open APs already litter the globe -- and the idea is against most ISPs' TOS.

Fon has hoped to address this by signing deals with ISPs like Time Warner Cable and this week British Telecom. Fon boss Martin Varsavsky posts the kind of bubbly generic PR fodder you'd expect after having money thrown at him over at his blog:
I am extremely proud to introduce you to the BT FON Community that BT and FON have built together in the U.K. BT recognized FON’s vision and understood how it would greatly benefit BT customers both at home in the U.K. and when abroad. It was amazing and refreshing to see how agile a telco giant could be in working with an innovative concept like the BT FON Community.
We know some of you folks signed up early (albeit sometimes just to flash the free router with third party firmware). Can anyone that's still a "Fonero" give their latest thoughts?

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Forums » Fon Cuddles Up To British Telecom
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wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..

Interesting development

This is clearly not against the TOS of BT's internet service, and that is a huge win for FON. Given the BT is essentially the LEC for all of England, this gives a huge (potential) reach to FON if people start using the service. This could get interesting if it gains any traction.
--
я люблю Денди!

lolcats

@enta.net

Re: Interesting development

wifi4milez:

I'd like to point out that British Telecom is the ILEC for the whole* of the UK, not just its largest constituent.

*excluding Kingston-Upon-Hull, one city in the largest constituent of the UK, England.

menumorut
BE an American.

join:2005-07-04
Queens Village, NY

Mr.Varshavsky is in the business of building and the selling companies for a profit, not running them (search his history).Good for him!!!

Fon is a social(istic) company that cannot make money with it´s present business model.

Fon invites broadband users to violate their ISP´s TOS (the ones that have no agreements with Fon), more specifically the part that prohibits to resell the connection or allow third party access without the ISP written consent.

Just like communism, perfect on theory, practically, a different story!
--
Give the world changes at a pace it can absorb.
Tikker_LoS

join:2004-04-29
Regina, SK
·SaskTel Saskatchewan

Re: Interesting development

said by menumorut See Profile :

Fon is a social(istic) company that cannot make money with it´s present business model.

Fon invites broadband users to violate their ISP´s TOS (the ones that have no agreements with Fon), more specifically the part that prohibits to resell the connection or allow third party access without the ISP written consent.
it actually works not bad if you have a hotspot near a coffee shop, or a restaurant or something similar. you're not going to get rich, but you save a bit on your monthly bills

Jim Gurd
Sorry Roger, you tiger now.
Premium
join:2000-07-08
Plymouth, MI

Making money

So how does Bill make any money if he has a bunch of Linus's using his network?

LaZ3R
Premium
join:2003-01-17
Toronto, ON
clubs:

Re: Making money

My question exactly. You'll end up having a bunch of "linus's" leeching off of you for free. I don't understand this...
--
Life is a game of blackjack. You keep playing until you bust.

LaZ3R
Premium
join:2003-01-17
Toronto, ON
clubs:
·Rogers Hi-Speed

Re: Making money

"Every person in the UK who agrees to share a small portion of their home broadband connection will be able to share the connection of any other member. "

Why... Why would I want to share my connection with someone else who already has their own connection. I'm simply not understanding the huge benefit of sharing your connection with everyone around you for free.
--
Life is a game of blackjack. You keep playing until you bust.
reelbigfish

join:2002-06-06
Boston, MA
·Comcast
·Comcast Digital Vo..
·Cox HSI
·Cox VOIP
·AT&T Yahoo
·AT&T Yahoo
·Vonage

Re: Making money

The point is you can share when you are away from home. Near where I live, there is an apartment building with a busy Starbucks in the basement. That means if you are a Linus you get free Wifi there or you can pay less to use it than Starbucks' T-Mobile wireless. Granted, as a Bill, you don't make money on them, but I'm sure there are other people that would pay for the usage. It really only works in dense area's. No one would use it if you are on your own 5 acres of land.

knightmb

join:2003-12-01
Franklin, TN
·Comcast
·Vonage
·Speakeasy

said by Jim Gurd See Profile :

So how does Bill make any money if he has a bunch of Linus's using his network?
Aliens, defined as those not part of the FON community. If they want access, they pay a fee for 24 hours access. The "Bill" or person who has the wi-fi hot-spot gets about half of what is made. I know because I run the "Bill" FON hot-spot and had a few people a month use it. I don't really care about the money, I would give it away for free. But I want to avoid the 24/7 leechers. This runs on my Comcast account, but I use my m0n0wall box to traffic shape their bandwidth to around 3.0 MB Down / 256 Kb Up. They also sit on the lowest priority for bandwidth so that high usage won't affect the bandwidth used by the company.

One thing I have to give them credit for, their custom firmware for the linksys hack the power level up as high as it can go because these things have some range that I've never seen before in off the shelf linksys routers.
Tikker_LoS

join:2004-04-29
Regina, SK

Re: Making money

exactly

I think I make 10 or 12 bucks a month off mine, and 99% of the usage is while I'm at work and not using it anyway

fonlookscool

@rr.com

here is a Idea...

all of the companys partnered with fon (such as BT anmd Timewarner) should have a free router sent to their customers that want to use it and give a small discount per month for having a fon router (such as 5$ off a month) . This will spread the fon community everywhere faster because everyone will want a discounted internet rate. Also it will spread access to wifi worldwide.

lolcats

@enta.net

Re: here is a Idea...

I believe BT is adding support for FON into their "home hub" (the router you'll get sent free for signing up to BT broadband) anyway.
Forums » Fon Cuddles Up To British Telecom

Friday, 25-Jul
15:53:26
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