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[English.martinvarsavsky.net] Martin Varsavsky | English: But after having built the second largest Spanish Internet company, Ya.com and the second largest publicly traded telecom company in Spain, Jazztel both with significant backers, I realized that at FON was going to need very special alliances to succeed on its objective of having 1 million hotspots around the world in 4 years. I knew that our method of downloading firmware was a much faster way of building a unified global WiFi signal than the traditional method used by local hotspots companies.

 [Fontastic.org] fontastic.org - FON and free WiFi blog » web2.0: Today the only hardware business lies in the sales of the Linksys router which clearly is not making any money, in fact Martin Varsavsky claims FON looses $25 per unit. With their own router (coming shortly) they will probably make a margin which I assume should be at least around 20% of sales in the long run (direct to consumer model and learning curve effect provided).

[Blog.thylmann.net] Oliver Thylmann’s Thoughts: Other providers of WiFi access points might be able to go lower, but FON has a hard time doing it, because that’s one of the good sale points with ISP because of the point made by Martin above. If they would go lower than it would make sense for me to sit together with my neighbors and let them all use my box via the standard FON way (with just giving them access of course being illegal in any case).

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