Several renowned companies, including Google and Skype, are investing in an ambitious plan to share wireless Internet access globally.
They have invested $22 million in Fon, a newly established company just three months old in Spain, aimed at creating a global network of wireless broadband users. Fon, which currently has 3,000 subscribers, has developed a three-tier Wi-Fi sharing system comprising Linus, Bills, and Aliens. Linus members are the official subscribers who have full access to Fon’s global Wi-Fi network. In return, each Linus must share their connection with other members.
Participants are required to install Fon software on their wireless routers and permit others to log in using a common username and password. However, the bandwidth for these public connections may be limited, depending on the account holder’s settings.
According to a recent study, very few laptop users activate Wi-Fi when leaving home. 20% are unaware of how to use the wireless functionality, while another 25% believe that existing access points charge too much. Additionally, most Internet Service Providers (ISPs) block shared wireless Internet connections. But Martin Varsavsky, the founder of Fon, asserts that his business model will align with ISP requirements.
“First, you have to be a customer of an ISP and negotiate a revenue-sharing agreement. The more participants there are, the more Fon access points will be created, and the dream of forming a unified wireless broadband network globally will become a reality,” Varsavsky explained. “The Fon environment can achieve what 3G networks and EVDO mobile Internet standards have not. While 3G and EVDO have broad coverage, they are too expensive.”
Roger Entner, an analyst at the market research firm Ovum (USA), commented that this project has the potential to spark a new revolution but also carries significant risks. “This is a grand idea, but it contradicts the current state of affairs. Fon transforms Wi-Fi into a ‘public asset’ at a time when it is not perceived that way,” Entner stated.
