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FONing Home: How Much Longer Will The Good Times Roam?

September 16, 2008

Early this morning, I received an email from FON announcing that the company had just passed the 1 million-subscriber mark, which raised a bit of nostalgia in my brain. FON, if you’re not already familiar with it, sells ‘La Fonera’ routers (and sometimes also gives them away…I have two sitting here courtesy of past promotions, one of which I plan to eventually dissect for Prying Eyes) that enable broadband Internet subscribers to share their bandwidth with others. The routers themselves are conventional 802.11g designs from a hardware standpoint, modified via firmware to simultaneously support two SSID/encryption key combinations.

The private SSID/key is for use by you, thereby securing your LAN from public perusal. The other SSID is for use by roaming so-called ‘Aliens’ on a subscription basis. Two levels of FON service are available to bandwidth distributors (hit the links for background on the naming):

  • Linus: You freely share your bandwidth (i.e. you don’t get a percentage of the fee that FON charges to ‘Aliens’) and, in exchange, you get to tap into the signals coming from other La Foneras for free, and
  • Bill: You get a cut of FON’s revenue coming from your La Fonera, but you have to pay to use other FON subscribers’ bandwidth when you’re roaming.

By the way, Internet traffic generated by you is logged by FON (complete with privacy concerns) separate from that of ‘Aliens’, so that you won’t get blamed for anything illegal done over your supplied bandwidth by a roaming user. You can also use currently-beta software to convert a Wi-Fi-inclusive computer powered by Linux or OS X and Internet-connected via some other scheme (such as CAT5 or a cellular data tether) into a Fon hotspot.

At the end of last year, I analyzed the fundamentals behind the implosions of various municipal Wi-Fi rollouts across the U.S. FON provides an intriguing alternative implementation of the pervasive wireless vision, one that cellular and WiMAX suppliers are also attempting to translate into reality (albeit using alternative technology foundations). As such, Skype/Ebay’s financial backing of FON makes sense, as the international backbone of a VoIP-based alternative telecom network.

So what’s with my early morning nostalgia? I remember, for example, my early (1999) days with DSL, wherein my first router (a Ramp Networks WebRamp 700s) by default only supported up to five network clients that accessed the Internet and/or obtained DHCP clients; additional clients with one or both characteristics necessitated an additional (expensive!) fee for an extra license. I remember, too, how horrified Pacific Bell’s technical support representatives used to be when they’d hear that I was using a router to share my DSL bandwidth across a multi-node LAN.

I also remember struggling to successfully mate a router to a neighbor’s cable internet modem, until I realized that the broadband service provider had associated his account to the MAC address of the PC that was formerly direct-connected to the modem, and therefore wouldn’t subsequently accept a connection to hardware that didn’t MAC-match. Therefore also explaining the MAC address cloning capability that quickly got added to routers’ setup screens…

"You’ve come a long way, baby", as the cigarette commercial used to say. But I can’t help but wonder how much FON’s ride will last, in the modern era of bandwidth throttling and capping, along with more general network neutrality-restricting concerns. As such, when I heard that FON was partnering with Time Warner Cable last April (followed by a similar partnership with BT that October), I about fell off my chair. However, I can’t find any current mention of the program on either FON’s or Time Warner’s websites, which is ominous, and even if the promotion is still active, I frankly doubt it will be for long.

Posted by Brian Dipert on September 16, 2008 | Comments (1)

September 16, 2008
In response to: FONing Home: How Much Longer Will The Good Times Roam?
AustinTX commented:

Fon does not have one million members! Fon has merely collected one million email addresses, many of which are suspect. Fon pretends that they have no churn. They only count increases in their registrations and memberships. Every hotspot that has ever gone live is considered live, even if it has been dead for months or years. Every guest or member who has ever registered, is considered still active, because the formal, but manual process to email "unsubscribe@fon.com" is buried in a .pdf document on their "Legal Notice" page. In order to access Fon's wifi network, You must register your email address and pay ?$3/day, or become a member by registering your email address and then contributing your own hotspot to the Fon Network. Originally, you could download their firmware for free, to install onto your own Linksys or Buffalo router. You could also manually configure other firmwares like DD-WRT, which have the neccessary features. Now Fon requires the purchase of their La Fonera router models at $20 or $50+ tax and shipping. It seems likely that much of Fon's income really comes from sales of this proprietary and feature-poor equipment now, rather than sales of wifi access. Fon obtained their firmware for free from the Open Source movement, but they violate the terms because they do not provide sourcecode under the GNU license. Members are called "Foneros", and they may be "Linuses" who allow Fon to keep all money earned by his hotspot, or "Bills" who provide a PayPal account and choose to have Fon share a small portion of what they collect from sales at his hotspot. He must pay his own local ISP for high-speed Internet service, and provide the power, maintenance and installation of the hotspot. He must operate this hotspot 24/7/365, and permit Fon to unconditionally resell his bandwidth. He will receive compensation for these resources and expenses ONLY when a guest buys a day pass at his hotspot. If the pass was bought elsewhere, and the guest roams onto his hotspot, he must still serve the bandwidth for Fon's vending. When a guest, called an "Alien", does pay $3 at your hotspot, for 24 hours of Fon wifi access, Fon will take 1/3 for "taxes and fees" even if these items do not apply in your country or to your non-partnered ISP. Fon aggressively refuses to explain who this money goes to, or in what amounts, and Customer Service responds with stonewalling and hostility when asked. Only the remaining 2/3 is "split", as Fon advertises, between Fon and Bill-Foneros. The Fonero's "half" is still held by Fon, without earning interest, until the balance exceeds $20. Then the Fonero may request a transfer via PayPal. Also, Fon is simply not a free wifi network! Guests may obtain 15 minutes of free wifi access by providing an email address, and watching a brief advertisement. These email addresses are not verified, but Fon still accepts them as valid "Alien" registrations. The text need only look like an email address to work. The same person may continue to do this once a day, but this is due to a lack of security, not an intended feature. Fon's pay-by-SMS option also does not check to see if a guest is in a participating country, until after they have provided emails and personal information to register as an Alien. Fon will not fix these things because it would mean less emails harvested. Most Foneros have also registered multiple emails to test and see what the ad looks like, or to troubleshoot it when it does not work. This brief free-to-try access certainly does not make Fon a "Free Wifi Network"! Fon's marketing staff have stretched this definition beyond the breaking point. Neither do Foneros have guarantees that they will find Fon hotspots to use while travelling, so the gratis roaming for contributing members is also uncompelling. Fon CEO Martin Varsavsky, has stated repeatedly and unambiguously in his blog, and in interviews, that Aliens are NOT members. He and Fon also make it clear that one must contribute a Fon hotspot in order to be titled "Fonero". Foneros may host more than one hotspot, and many of us do. Therefore, the total number of Foneros who have ever registered must clearly be slightly less than the number of Fon hotspots. However, Fon has been reporting all hotspots ever registered as "available", and also claiming that they somehow have far more Foneros than hotspots! This month, Fon now claims there are a million Foneros/ members/ community members, "more than 400,000" Fon hotspots (Fon Blog) or "almost 300,000" (Varsavsky's blog). This is both inconsistent, and unbelievable! And still they avoid admitting that more hotspots are now dead than remain available. My point in writing is to demonstrate how little is understood about how Fon works by people outside of Fon's long-term membership, and the perils of accepting Fon's claims without scrutiny. Fon is convoluted, and full of aspects where very important requisites are glossed over, astonishingly odd definitions are applied to justify the truthiness of some feature or promise made by them. I encourage you and your readers to scratch beneath the surface. You can start by reading "My Fon Blog" and "El Fon Blog", which are written by non-employee members of Fon Wireless, Ltd.

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