Skype, Google Back WiFi Net Sharing
Fon Technology, a Spanish start-up that provides technology to allow users to share Internet access with neighbors, announced Monday that it had secured 18 million Euros ($21.7 million USD) in financing from Skype, Google, and two venture capital firms.
Fon wants to create a block-by-block grid of shared wireless connections worldwide, allowing users of the service to access the Internet for free or a small fee where the service's users are sharing their Internet. The technology is loosely based on the same peer-to-peer technology made popular by Napster.
However, the legality of such a service isn't exactly clear. Some ISPs bar their users from sharing their connections, which could lead to lawsuits by cable and telephone Internet providers.
To become a FON hotspot, all a user must do is download and install firmware onto a FON-compatible router. From there, the sharing individual can then set a certain amount of bandwidth to set aside for other users.
During the beta phase, the company is only accepting users who agree to share out their WiFi to others, but in the future the company will charge a small fee to those who are not part of the network. Those who share their Internet access would also be able to receive a portion of the fees as compensation in the near future.
Fon also plans to place its own routers in areas with no coverage, with a focus on economically disadvantaged areas, the company's Web site says.
The service currently has 3,000 registered "Foneros," or hotspots. The company hopes to push that number to one million by 2010. The investments from Skype, Google, and venture capitalists will help get to that goal, said its founder in a statement announcing the investment.
"What makes each of these firms great backers for us is that deep in their DNA is the idea of brand-new business models, tons of innovation and a commitment to making the digital world easier and cheaper," founder Martin Varsavsky wrote Sunday in the company's Web log. "We feel the same way."
He also said he would work with ISPs by offering revenue sharing opportunities to those who agree to sell "Fon-ready" Internet service packages.
Sweden's GlocoNet has already signed up.
According to Varsavsky, only two to four foneros per block would provide good wireless coverage. In some urban areas, the number of wireless networks can easily exceed that.
The newfound popularity of the service was apparent Monday: the websites registration system was experiencing issues that were preventing some users from subscribing to the service.
Fon said it expected the issues to subside by Tuesday after the initial spike of traffic tapers off.