Florian Hollender | floho.com

The latest upgrade of the FON network and the website FON.com finally gave me an incentive to go ahead, get out that old WRT54G, install the FON software on it and start running my own hotspot! FON, founded by Martin Varsavsky, is a community-driven approach to build a global network of WiFi hotspots. Right now they are giving the routers away for €/$ 5 (plus VAT+shipping though)! You simply hook them up, register the hotspot, and off you go. The geniality of the FON idea is that everybody profits. And by everybody, I include ISPs:

FON provides clear benefits for ISPs:

• Generate additional revenue through sharing Aliens’ revenues
• Provide free WiFi roaming and a social networking platform at no extra cost
• Differentiate their service offer from the competition
• Increase broadband penetration especially in small businesses
• Use of the FON platform to launch wireless services
• Reduce churn and attract new customers by benefiting of the brand association with FON

All this at no extra costs for the ISP! FON is not about Free Internet for all!

• FON increases broadband penetration

• FONeros have to have broadband connection to share it
• Alternatively, they must pay for usage, and prices are designed to avoid cannibalization of ISP products

FON enhances the value of ISP network by offering global connectivity in all FON Hotspots at no cost for the ISP or the user

FON prevents anonymous access as every session is registered and trackable

(Source: http://en.fon.com/biz/isps_friends.php)

This seems to be the key success factor: ISP collaboration.

There are three ways of being a FON user - you can be an Alien, a Linus or a Bill. As Alien, you do not share your own internet connection through a FON hotspot, so you are just a regular user who wants to have internet access. You pay either $/€ 3 for 24 hours of access (where you can switch between FON hotspots as much as you want to), or you buy 5 days for $/€ 10, which makes only $/€ 2 per day. This clearly undercuts existing commercial hotspots. As Linus, you share your internet connection through a FON hotspot. In exchange, you can use every other FON hotspot around the world - free of charge! The money Aliens pay when accessing your hotspot goes to FON. As Bill, you monetize! You also share your connection, but you get 50% of the revenue whenever an Alien signs up for internet access through your hotspot. When you want to access other FON hotspots as a Bill, you pay the regular rates.

Short and simple: I love the idea, and I love being a part of it.

[tags]FON, Martin Varsavsky, hotspot, WiFi[/tags]