FON’s $5 Wi-Fi routers
p2p news / p2pnet: Would you trust a so-cheap-it’s-almost-free Wi-Fi router with Google and eBay locked in behind it?
In February, Google, eBay’s Skype and venture-capital firms Index Ventures and Sequoia Capital splashed $21.7 million on FON, a Spanish p2p wireless project looking like a kind of commercialized Semi-FreeWan.
FON, based in Madrid, was designed to allow people to share their Net access with others. Not at all incidentally, it’ll also expose users as targets for advertising and commercial services offered by Google, eBay, and associated firms, with all that implies.
Now eBay and Gooogle plan to start selling Linksys routers, which usually cost around $60, for a mere $5, "to encourage consumers to share their Web connections with others," says Bloomberg News.
This venerable technique, called loss-leading, is well-known to Apple. Under it, something is sold for less than its market value to induce consumers to consume whatever it is said company or companies doing the selling are really peddling.
Apple used iTunes to peddle exorbitantly over-priced (thanks to the venal practices of Warner Music, EMI, Vivendi Universal and Sony BMG) digital music downloads to encourage punters to lash out on iPods.
The scheme worked brilliantly to the extent iTunes is probably now in the black as it continues in its role.
How will Google, eBay and FON initially cash in on users, advertising implications aside? "FONeros are registered users who share their WiFi connection in exchange for something of value," says the site. "They are either Linuses or Bills. FONeros’ access points are called Hotspots, and each one of these Hotspots makes up the FON Community. Everyone else who wishes to access the FON Community and who is not a FONero is an Alien.
"Linuses share their WiFi connection in exchange for free access to all other WiFi Hotspots within the FON Community. On the other hand, Bills share their WiFi connections in exchange for getting the 50% of the net revenues from those who purchase daily access FON passes to the FON Community through the Bill’s FON Hotspot.
"Aliens using laptop computers or similar devices are permitted to access any FON Hotspot by purchasing daily FON passes. The standard rate for these FON passes is currently €3 (about $3.78) for a 24 hour connection period. FON passes are similar to pre-paid cards. Aliens pre-purchase these FON passes and then use them to connect to the Internet freely."
‘FON, "has a great idea to help people share WiFi with one another to build a global unified broadband network, and we’re happy to lend support," said a statement released by Skype chief executive Niklas Zennstrom, quoted in the Boston Globe.
Morpheus owner StreamCast Networks has filed RICO (Racketeering Influenced and Corrupt Organization) Act, anti-trust and other claims against eBay and Skype and 21 other defendants, who include Kazaa co-founders Niklas Zennstrom and Janus Friis.
Digg this story.
Also See:
splashed $21.7 million – Google, eBay, buy into p2p WiFi, February 6, 2006
Bloomberg News – Google-eBay venture promoting free Wi-Fi with sale of $5 routers, July 27, 2006
Boston Globe – Google, eBay unit back plan to charge for WiFi access, February 6, 2006
filed RICO – Named in StreamCast vs eBay, May 27, 2006
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June 27th, 2006 at 5:52 pm
the shipping is about $8 pretty standard on a 2LB intem shipped with a courier like FED_EX ,UPS or DHL