22 million USD for the dream of global Wi-Fi network
Some well-known companies, including Google and Skype, are investing in an ambitious plan to share wireless Internet access around the world.
They spent $ 22 million on Fon, a 3-month-old company in Spain, with the aim of building a network of wireless broadband users worldwide. Fon, currently attracting 3,000 subscribers, has formed a Wi-Fi sharing system in three classes: Linus, Bills and Aliens. Linus is the official member, having full access to Fon's global Wi-Fi network. In contrast, each Linus must share their connection with other members.
Participants must install the Fon software on the wireless router and allow others to log in with the same account and password. However, the bandwidth for that public connection may be limited depending on the basic account owner.
According to a recent study, very few laptop users turn on Wi-Fi when leaving home. 20% do not know how to use the wireless function and another 25% claim that the access point is currently too expensive. In addition, most Internet service providers (ISPs) block connections to wireless Internet guys. But Martin Varsavsky, Fon's founder, insists his business model will be in line with ISP requirements.
" First you have to be an ISP's customer and negotiate and share revenue. As more and more people join, there will be more Fon access points and the dream of forming a unified broadband wireless network. "Varsavsky explained," Varsavsky explained. " The Fon environment can achieve what 3G networks and EVDO mobile Internet standards have not yet done. 3G and EVDO have wide coverage but they are too expensive ."
Roger Entner, an analyst with market research firm Ovum (USA), said the project is likely to open a new revolution but also contains many risks. " This is a big idea, but it's contrary to what's going on. Fon turns Wi-Fi into a 'public asset' while it's not currently recognized as such, " Entner said.
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