FON Launches With BT

So finally, the news has been PR-sanitized. British Telecom (BT) has made it official that it is investing in Spanish Wi-Fi sharing service, FON, and will also make an investment in the company. I had reported this back in March, so am not quite surprised by the news. FON is having a big party in London to celebrate, and I am going to be there, if only to ask Martin Varsavsky the question: Is he really paying $8-to-$10 per BT customer who turns on the FON client? Now that is one way to spend the VC dollars and get a bigger footprint!

Martin’s blog post details the news. Also, some expanded thoughts from Connected Internet, which asks the relevant questions but gets no answers from BT. For instance:

* What will be the coverage targets be for BT FON?
* How much bandwidth will each BT FON customer be asked to share?

I will add one of my own: How does a BT-FON combo overcome the footprint issues? I have tried the FON routers and the usage experience…. ahem!

Update: Varsavsky denies that BT is paying for FON client installs…and Om is doing some additional reporting and will update the post again shortly.

Update#2: Martin Varsavsky writes on his blog that he is not paying BT, and he has emailed and assured me of the fact, and that my sources are off base on this information.

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