Fon, a Wi-Fi startup comapny has made a deal with Time Warner Cable to let their residential broadband customers turn their Internet connections to public wireless hotspots. Fon will benefit from a huge credibility boost and Time Warner Cable will not lose its customers to lower cost wireless plans that are becoming more common. Fon believes that once it's customers pay for Internet access, they should be able to use it where ever they are, at home or in a coffee shop. The company has distributed over 370,000 of its branded wireless routers called La Fonera since late last year acrss the world.
La Fonera splits a Wi-Fi connection in two: an encrypted channel for the Fonero and a public one for neighbors or passers-by. Foneros can decide how much of their bandwidth to share with the public and can log on to any Fon router without charge. "Aliens," as Fon calls nonmembers, can register on a Web page and pay a modest $2 or $3 for 24 hours of access.
In the U.S., where it costs $10 for a day pass to use a T-Mobile HotSpot at a Starbucks, Fon's economics seem particularly appealing.
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