Wibiki just announced that they will embrace new Wi-Fi services and models, such as Fon's. They will even adapt their software so that Wibiki users can use free FON hotspots.
Of course, one really only has two choices when a competitor all of a sudden becomes BIG friends with Google, Skype, Cisco and the like. Either you 'embrace' them, or you make a big noise about how their product is inferior. Wibiki chose to do the former, but did mention that Wibiki is the only company to still offer totally free access.
So why is Fon better than Wibiki? In my opinion it has nothing to do with Fon getting $22mm in funding, but with the simple fact that Fon integrates both for-fee and for-free models. I don't think Fon does this particularly well, or in an innovative way. It simply offers both models under one brand name.
But the fact that it offers both means it can compete for the minds and hearts of different kinds of hotspots owners: The small entrepreneurs who intend to setup hotspots at various locations, as well as the guy wanting to share with 2 or 3 neighbours.
Wibiki, the Company that provides
software for a free Wi-Fi world, said today it will extend its free Wi-Fi platform to embrace new Wi-Fi services and models. The Company will provide free Wi-Fi software for more routers, including NetGear. Wibiki will also enhance free Wi-Fi software for laptops to help users find FON (http://www.fon.com) hotspots when free Wi-Fi is unavailable.
CEO Shant Hovnanian said "Wibiki is all about free. We intend to make Wibiki compatible with any company and all organizations that include a free Wi-Fi access component in their offering. We recognize that the FON model primarily depends on user access fees, but they've told us hotspot owners will have the option to provide Wi-Fi without charge."
Wibiki will continue to focus on free Wi-Fi for users and communities. It has developed a new user opt-in advertising service to pay for free user services. Wibiki has filed patents for technology that increases user control of Internet ads on their screens. "Pop-up" ads will be excluded by the new service. Initial funding for Wibiki was provided by Speedus Corp., the company that pioneered development of wireless broadband in the early 90s.
Wibiki remains the only company offering a totally free Wi-Fi platform -- free software for both clients and routers -- that make it simple and safe to share wireless access. Wibiki intends to continue its investment in giving all users an easier way to find and connect to the best free Wi-Fi available. Users can download and install Wibiki from http://www.wibiki.com.
Wednesday, February 08, 2006
Fon Fon Fon Fon Fon! (sung to the tune of the Tigger song)
Wow, what an exciting few days it's been. I'm not sure which is more exciting, the fact that FON raised $21.7 million from Google and Skype, or all the blogging going on around it!
I've been watching Fon with some interest the past few months, and must admit that I'm totally blown away by the amount of capital they raised for what has repeatedly been called a "flawed business plan". (See "Wibiki joins Fon in reiterating failed business models of the past") Of course, having Google, Skype and 22 million dollars in your pocket gives a whole new perspective on the term "flawed business model".
The greatest thing for us about Fon managing to get this kind of backing is that it validates what we at Skyrove are doing, that is, community owned wireless infrastructure.
It does also make it clear that there will be major competition in this space! Fon is not doing anything new. It's really the same as Joltage, Wibiki and SOHOwireless, although Glenn Fleishman argues that the they're really a for-Fee hotspot service like Boingo or The Cloud and that the for-Free sharing model they're pushing is really just a smokescreen for the 'true' business of commercial hotspots.
I've been getting quite a few emails from folks since Monday asking what's the difference between Skyrove and FON.
Here are some differences AND similarities:
1. We have the same vision: Cheap Global Wi-Fi coverage through community-owned hotspots.
2. They have funding and brand-name backers, and we don't (yet) :)
3. There's nothing unique about their business model. They're simply offering BOTH for-fee and for-free sharing models. Skyrove combines the two in a new way, letting the Hotspot owner decide the price.
4. Skyrove is conceptually like the "eBay of Wi-Fi". We don't sell Wi-Fi, we provide the platform for anyone to sell it themselves at the price they set, while we take a commission on the sale. Think of FON as trying to be the "McDonald's" of Wi-Fi, which is the competitive space shared by Boingo, The Cloud, iPass and others.
5. Their router software was written by the same brilliant programmer who wrote our software, Sebastian Gotschall, and we use the same router, the Linksys WRT54GL. However, they are selling the router at $25 while in South Africa we're paying about 4 times as much from the distributors!
6. Skyrove's edge: Our system is implicitly ISP friendly. Although our system caters for both Usage (per MB) and Time billing, we are biased in favour of Usage billing. An ISP can offer a per GB package to Hotspot Operaters without fear of it being 'abused' in some way. The more GB used, the more money the ISP will make. We don't have to "convince" ISPs that "Sharing is Good". We believe it is good, but we'd like there to be a real "bottom line" incentive for ISPs.
7. We have already signed a small ISP in the US (SkyWi) and are in talks with some others (large and small)
8. We don't have SpeakEasy or any other ISPs theatening legal action (yet) (see Speakeasy Says No Deal with Fon)
*UPDATE: SpeakEasy and Fon made peace soon after. I spoke to a SpeakEasy rep who said that they're totally happy with anyone sharing their internet with Wi-Fi, regardless of the payment method*
9. Skyrove has a much stronger focus on enabling small entrepreneurs, particularly in developing countries, to set up multiple profit-making hotspots. We will enable ordinary folks to share with their neighbours, but we give massive incentive to entrepreneurs who install multiple hotspots.
10. Just like Martin's blog, this blog suddenly got a shitload of hits on Monday. Although Martin's probably got about a 1000 times more!
I hope that all the hype around Fon's fundraising will be the jumpstart needed for investors to start backing Wi-Fi projects, so that we can finally see truly global Wi-Fi access, particularly in the developing world.
Wi-Fi is a dirt-cheap technology. What is needed are folks like Fon, Skyrove and others to take internet access out of the hands of telcos and give the power of communication back to who it belongs to: the people.
Update: Wibiki embraces Fon
I've been watching Fon with some interest the past few months, and must admit that I'm totally blown away by the amount of capital they raised for what has repeatedly been called a "flawed business plan". (See "Wibiki joins Fon in reiterating failed business models of the past") Of course, having Google, Skype and 22 million dollars in your pocket gives a whole new perspective on the term "flawed business model".
The greatest thing for us about Fon managing to get this kind of backing is that it validates what we at Skyrove are doing, that is, community owned wireless infrastructure.
It does also make it clear that there will be major competition in this space! Fon is not doing anything new. It's really the same as Joltage, Wibiki and SOHOwireless, although Glenn Fleishman argues that the they're really a for-Fee hotspot service like Boingo or The Cloud and that the for-Free sharing model they're pushing is really just a smokescreen for the 'true' business of commercial hotspots.
I've been getting quite a few emails from folks since Monday asking what's the difference between Skyrove and FON.
Here are some differences AND similarities:
1. We have the same vision: Cheap Global Wi-Fi coverage through community-owned hotspots.
2. They have funding and brand-name backers, and we don't (yet) :)
3. There's nothing unique about their business model. They're simply offering BOTH for-fee and for-free sharing models. Skyrove combines the two in a new way, letting the Hotspot owner decide the price.
4. Skyrove is conceptually like the "eBay of Wi-Fi". We don't sell Wi-Fi, we provide the platform for anyone to sell it themselves at the price they set, while we take a commission on the sale. Think of FON as trying to be the "McDonald's" of Wi-Fi, which is the competitive space shared by Boingo, The Cloud, iPass and others.
5. Their router software was written by the same brilliant programmer who wrote our software, Sebastian Gotschall, and we use the same router, the Linksys WRT54GL. However, they are selling the router at $25 while in South Africa we're paying about 4 times as much from the distributors!
6. Skyrove's edge: Our system is implicitly ISP friendly. Although our system caters for both Usage (per MB) and Time billing, we are biased in favour of Usage billing. An ISP can offer a per GB package to Hotspot Operaters without fear of it being 'abused' in some way. The more GB used, the more money the ISP will make. We don't have to "convince" ISPs that "Sharing is Good". We believe it is good, but we'd like there to be a real "bottom line" incentive for ISPs.
7. We have already signed a small ISP in the US (SkyWi) and are in talks with some others (large and small)
8. We don't have SpeakEasy or any other ISPs theatening legal action (yet) (see Speakeasy Says No Deal with Fon)
*UPDATE: SpeakEasy and Fon made peace soon after. I spoke to a SpeakEasy rep who said that they're totally happy with anyone sharing their internet with Wi-Fi, regardless of the payment method*
9. Skyrove has a much stronger focus on enabling small entrepreneurs, particularly in developing countries, to set up multiple profit-making hotspots. We will enable ordinary folks to share with their neighbours, but we give massive incentive to entrepreneurs who install multiple hotspots.
10. Just like Martin's blog, this blog suddenly got a shitload of hits on Monday. Although Martin's probably got about a 1000 times more!
I hope that all the hype around Fon's fundraising will be the jumpstart needed for investors to start backing Wi-Fi projects, so that we can finally see truly global Wi-Fi access, particularly in the developing world.
Wi-Fi is a dirt-cheap technology. What is needed are folks like Fon, Skyrove and others to take internet access out of the hands of telcos and give the power of communication back to who it belongs to: the people.
Update: Wibiki embraces Fon
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