Fon and Time Warner, what’s in it for them

Escrito el 24 Abril 2007 por Ricardo Pérez Garrido en English, Innovación / Innovation, Internet

The press today is covering the story of Fon reaching a really big deal in the USA with Timer Warner broadband division (more than 6 million customers) to allow them to share their connections and have free access when they are out of their homes and close to a Fon user… The deal is great for Fon, giving them not only media coverage (here is the NYT story, among others), but also as a way to get the much needed “serious approach” to their business model: while their proposal can be understood as, at least, difficult from a legal point of view given the current contracts in many countries for broadband usage, the agreements with Telecom players will give a reinforcement to their chances to survive and enter a cash-generating curve that for now is not a reality but a promise.

For Time, is a way to explore value addition for their customers that more and more understand broadband as a pure commodity and will use price as their primary reason to choose a company. What is not clear is how these services compete with municipal wi-fi, that is such a big trend that will probably reach your neighborhood in the next…months?

The reality is that if Fon can finally forge such an agreement with one big player in Europe, then they will become a serious contender in a “community based Telco” world that seems more plausible today than yesterday… but still with some clouds from the legal perspective.


Patxi Bonel 24 Abril 2007 - 14:04

Martin Varsavsky is a very clever man. Like a chess player he’s adding new value to his FON business project with every movement.

Skype and FON are getting the maximum benefit from TELCOs resistance to delay as much as possible digital convergence.

Therefore Skype takes advantage of long distance voice phone calls’ margin using VoIP.

FON does the same providing wireless broadband communications using Wifi instead of expensive 3G mobile data price rates.

Are FON and Skype building a loyal customer base for the future? Or will the big Telcos change the rules in the future introducing new low cost flat rates according to their needs?

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