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Google, Skype Sink Dough Into WiFi Hotspot Net

Written By Reprise Media | February 6, 2006 | Share This |

hotspot.jpg

Google has been interested in expanding the reach of WiFi for a while now (we touched on the subject back in August); they’re already well on their way to operating a wireless network in Mountain View, CA (near their home base) and they’re trying to get one going in San Francisco as well. And a little over a week ago, InfoWorld reported that Google had been talking to Sony, Motorola and other makers of mobile devices about how to best exploit municipal wireless networks.

Today, Mercury News reports that Google and Skype (an internet telephone brand) have teamed with a pair of venture capital outfits (Sequoia Capital and Index Ventures) to sink $21.7 million into FON, a fledgeling Spanish company bent on creating a global community of people willing to share their WiFi connections with strangers.

FON is currently still beta testing its network, but ideally it would work like this: anyone can register to become a so-called “Fonero” and download FON software for free. Those Foneros with a wireless broadband connection using a FON-compatible router - currently only those made by Linksys - would then make their connection available to other Foneros. What a Fonero would pay to access hotspots depends on what kind of user they are; a “Linus” is a user who makes his connection available for free and can surf anywhere for free, an “alien” is a user who has no connection to share (but may use others’ for a modest fee), and a “Bill” is a user who elects to receive a cut every time an alien accesses his or her connection, but must pay to access the network. If you need more information (or specialized jargon) the FON FAQ probably has it.

It might look good on paper, but more than a few people think the venture sounds pretty FON-ey. Count Mike at Techdirt thereamong, who points out a glaring problem: “nearly every ISP out there forbids you from sharing the connection.” And FON explicitly states that potential users should get permission from their ISPs before signing on to participate. Google and Skype could be making a losing bet with FON, but for them that kind of cash is almost penny-ante stuff. And it could pay off for a whole lot of people (not to mention FON’s investors) if their service ever takes off.

Topics: Wireless & Mobile |

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