There seems to be a developing buzz about the new Spanish start-up company FON around the blogging world at the moment. As someone very interested in the changes that are happening around Web 2.0 and P2P applications, plus someone who like the owner of FON is an english speaker in Spain (it turns out he’s originally from Argentina), this caught my interest- the similarities end there, by the way; I don’t have a spare $500 million lying around yet.
It seems to be applying the same priciples of P2P and Web 2.0 to the networking process itself- what those principles exactly are is harder to define and is maybe somthing for a later article- like St. Augustine said when asked to define Time- ‘I know what time is until you ask me to define it’- well, I know what Web 2.0 is until you ask me to define it.
The idea is basically that you share your wireless connection, either for free, in which case you get to share other people’s connections for free, or you ask people to pay, in which case you have to pay for the service itself (this part isn’t functioning yet though). Sounds simple enough…
Google and Skype obviously agree that this idea has legs, and have invested a lot of money in it, which is allowing FON to get off the ground by offering cheap wireless routers already set up for their service.
So I dug a bit deeper and there seem to be some objections- that the owner of FON is not as altruistic as he seems (and he has gone for some very altruistic, Barcelona-squatter-graffiti style design on the FON website). There are some questions about what the real intention of the company is.
Also at this point it seems unclear as to whether Telefónica and the other Spanish ISPs are going to like these new developments, but I would think that contrary to what FON is saying- that sharing your broadband is good for ISPs- they will take the opposite view; however this doesn’t mean that it won’t work- do Telefónica like the way Skype is taking away their long-distance call money? Probably not, but they like the way people are getting broadband in order to use Skype. Do record companies like the way BitTorrent and other P2P is eating into their profits? No, but Apple have shown with I-Tunes that if you go with the flow rather than fighting against it, then there is still money to be made, and FON are offering to share profits with the ISPs, which seems the least they can do under the circumstances. The thing might take off to the extent that the ISPs have no choice- I know that people here in Catalunya are desperate to get away from Telefónica’s mediaeval-style monopoly.
Some bloggers have found out that there is money to be made in writing about FON (also this, and this in Spanish)- but let me say here and now, that I am literally not being paid a penny to write this blog entry, and if any of this dirty money comes a-knocking at my door, I will be forced to say ‘come on in, I’ll write whatever you like if the price is right’. Well, maybe, I’ll just have to cross that bridge when I come to it….
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4 March 2006 at 3:51 PM
Pingback from Fon: Google, Skype and hype- latest research, part 1. at Arc Iris
11 February 2006 at 4:11 PM
kenjimori
Hello,
I have just found this article via technorati searched on FON. Thank you for your interesting analysis using Skype/telephone and iTUNES/music analogies. Yes, to me too, “profit-sharing” seems to be the way to go.
Also worth noting that the news released by the founder himself in his blog first, not through traditional media such as WSJ. That is totally not the way it is supposed to work particularly for the old media folks; at the same time, it might be the way it is to work for the new.
BTW, I am not paid by FON at all, either. Just interested in knowing how it will evolve:)
13 February 2006 at 11:34 AM
Francisco Turet
“plus someone who like the owner of FON is an english speaker in Spain “.
What do you mean? He lived in Argentina until he was 16, more or less, and he lives in Spain since some years ago. His whole family is from Argentina. He speaks Spanish as well as you can do!!
It’s true that he speaks English, too, but his primary language is Spanish. And you can read his blog in Spanish: http://www.martinvarsavsky.com
13 February 2006 at 12:06 PM
Guy
kenjimori- thanks for your comments, glad you liked the post. you make a good point when you say that it was notable that the news was released on a blog first- in this way, we can see that influential people can now expect the news to come to them, rather than the other way ’round. i’m personally going to wait and see too with FON, also planning a blog entry about internet ‘gold rushes’ and their dangers. by the way i really like your web site.
Francisco Turet- you are right, I phrased that badly- I should have said ‘another person in Spain who blogs in English’ - I am planning some entries in castellano on this blog but i need more time for those as it’s not my first language. Of course, being from Argentina he is a Spanish speaker first and foremost. At least it shows me that people do actually read carefully if i get corrected on something like this! thanks.
13 February 2006 at 1:55 PM
Francisco Turet
OK, I missunderstood what you meant. Now it’s clear.
16 February 2006 at 8:07 AM
kenjimori
Guy,
Thanks. I would like to keep an eye on FON. Later. Cheers:)