Wednesday, February 08, 2006
Wibiki embraces Fon
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.
Fon Fon Fon Fon Fon! (sung to the tune of the Tigger song)
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
Thursday, January 19, 2006
My Tip for Trevor - South African Minister of Finance
Dear Mr Manuel,
South Africa has the talent and skills to be part of the next Internet revolution. Internet-based companies by their nature are able to trade globally from day one. However, this is severely restricted in South Africa.
For example: Lungi has been selling handmade African jewelery in Gugulethu. She can start a website, with the help of a local NGO, and sell online to people overseas. However, folks overseas wish to pay in their own currency, e.g. Euro.
Currently, to perform this simple task, the only viable option for Lungi is to open an offshore bank account and an offshore company.
But to do this, she needs to get something called 'Reserve Bank approval', which is a silly process that A) Costs too much for a mini-entrepreneur and B) is a bureaucratic nightmare, with all sorts of requirements that were drawn up without ever thinking of small entrepreneurs and/or internet businesses.
Trevor, you'll do South Africa a GREAT favour by ensuring internet businesses can go global and flourish from day ONE.
How about this? I'll raise the funds for an NGO that helps township businesses go global, if you level the playing field and make it as easy to start a global internet business based in South Africa, as it is in most countries around the world!
Yours faithfully,
Henk Kleynhans
CEO of Skyrove (Pty) Ltd
Winner of the Enablis/Business Report ICT Entrepreneurs Challenge 2005
henk@skyrove.com
blog: www.yeahfi.com
* Please join me in this campaign by leaving a similar Tip for Trevor!*
If you are too lazy to type out your own blurb you may copy & paste the following:
"Dear Trevor, Please re-consider Reserve Bank approval for internet companies that need to trade globally, whether it be tangible products, or intangibles such as electronic books, music, videos, telecommunications services etc. Please contact Henk Kleynhans via email at henk@skyrove.com if you need further clarification."
Saturday, January 07, 2006
Wibiki goes live with free Wi-Fi internet access
You'll need to download the Wibiki software and install it onto your laptop and your Linksys WRT54GS router. (Available for $80 at Amazon.com)
The instructions on Wibiki's website are incredibly clear and it's obvious that Wibiki have been working hard at making this simple. The laptop software didn't cause any hassles or crashes, even though it's only at version 0.1.3.
It definitely looks that as far as the technology goes, Wibiki has got it right.
The big question is whether they have the right business model for encouraging Wi-Fi adoption, and in particular, bridging the digital divide. In South Africa and many other countries, DSL subscribers pay by the gigabyte, and through the nose at that. This means that sharing with freeloaders is simply too risky. I suspect Wibiki might be able to earn advertising revenue from a portal 'landing' page, i.e. the first page that Wi-Fi users will see when connecting to a Wibiki hotspot.
Even if Wibiki shared this revenue with hotspot owners, it is unlikely to be enough for the hotspot owner to make any profit.
Wibiki is led by CEO Shant Hovnanian and CTO Marcos Lara who are no strangers to the world of wireless communications. Shant has been promoting the convergence of voice, data and video over wireless since the early nineties. Marcos has been working on altruistic, community owned Wi-Fi since 2001 as a member of NYCwireless and is the Founder of the Public Internet Project and the Bryant Park Free Wireless Network!
From the Skyrove team, we wish you all the best in helping to make Wi-Fi cheap and accessible to everyone!
Monday, January 02, 2006
What's your Exit Strategy, Sonny?
Google 'exit strategy' and see what comes up. George W. Bush didn't have an exit strategy for invading Iraq. There was no exit strategy for the US involvement in Vietnam. This makes it look as if you might only need an exit strategy if you have a bad idea in the first place.
However, VCs aren't really that interested in long-term dividends. They wish to invest money, see it grow in the shortest timeframe possible, and then sell, typically within 3 to 7 years. With the money they make on the sale, they invest in more companies and repeat the process.
Obviously, I feel at odds here with potential investors. I'm thinking all day about getting 'into' business, new markets etc. The budding entrepreneur has very little time to think about getting out while working his butt off just trying to get in.
Essentially, there are 2 common exit options: Aquisition or IPO.
Recently, Skype was sold to eBay for $4.1 billionAlthough I'd gladly accept such an offer, I wouldn't plan any business from the ground up with a 'big sale' in mind.
So that leaves us with the other great option: the IPO. Very exciting, but is it really necessary to go IPO? What are the plans of the guys at 37Signals (one of my favorite 'model' companies)? I somehow don't imagine them in the IPO world with their no-nonsense 'less is more' approach.
Rick Segal suggests that a startup should never have ‘build to flip’ as a cornerstone of its business plan. See his excellent post: Build to Flip = Build to Fail
My favourite quote: "I point this simple math out because you can dig into your passion, make it amazingly great, and knock one completely out of the park without worrying about a flip, being crushed or ripped off. Keep it personal, grow the business, and let the big guys come knocking on your door."
I'll be waiting for your call, Mr Omidyar!
Tuesday, December 20, 2005
The Best Books in Life are Free
An insight from his book:
"You need to start before you start. Figuring out which business to be in is one of the most important things you can do to ensure the success of your new venture, yet it's often one of the most poorly thought out decisions bootstrappers make."
It reminded me of a function I recently attended (at Mzoli's, no less) where Canadian telecomms magnate Charles Sirois was the keynote speaker. He put it in an interesting, uniquely Canadian way: "It doesn't matter how good your canoe is, it's the lake that matters! Even if you have the fanciest canoe in the world, if the lake is busy drying up, you'll find yourself at the bottom of it with all the other crappy canoes."
Download "The Bootstrapper's Bible" here in PDF format and start paddling!
Sunday, December 11, 2005
Township Entrepreneurship and Naked Kings
Mark Twain once said that any time he found himself in the majority on any given issue, he always reevaluated his position. One of my favorite stories of all time is "The Emperor's New Clothes". The main character is a vain king with a particular affection for fine clothing. He gets swindled by two tailors who sell him a suit made of material so fine and pure that it was invisible to the foolish and the unworthy. Of course, there is no material, but as the king and everyone else don’t want to be exposed as fools, they all keep quiet. When the king parades his new suit in front of his subjects they all cheer and make comments about how 'fine' his new suit is. Until a little boy points at the king and shouts out "The King is naked!"
People started realizing the trick, but the king continues the parade, telling himself: "I must go on pretending. I cannot stop now"
I've often felt like the little boy, pointing at naked kings of all sorts. There is a particularly large amount of 'naked kings' being sold to the public these days through the insane amount of advertising, marketing and branding being forced upon us. But who is to blame? The 'swindlers', or the public who accepts their lies?
Luxury goods (think of a $100 rolled-up tobacco leaf) in particular is a whole 'naked empire' in itself. And it's particularly interesting when swindlers try to sell a 'naked king' to a group that isn't used to buying 'naked kings'.
For example, I recently went to a wine-tasting in Gugulethu. For those of you who don't know, Gugulethu is one of
Everyone at Mzoli's got free samples and Pieter, the wine maker, explained to a crowd of about a 100 black people how to drink and "appreciate" wine in the correct fashion.
He then asked them if they could identify the subtle hints of guava and tropical fruits in the Chardonnay and if they could taste any other fruits in the wine. "What else can you taste?" And the crowd answered as one:
"Grapes!"
Friday, December 09, 2005
Cut your site in half
Becasue I believe one should start simple. The really funny thing is, even though our new service does something very 'simple', the interface is anything but. To sign up as a new user to our service, you have to go through 11 webpages!
Our current design was done by developers, for developers". I.e. the pages are actually just "test" pages so that our developers could test the working of the back-end system.
So we went back to the drawing board (literally) and realised straight away that we could cut out 3 of those webpages immediately before any major re-design or development.
Ironically, even though our design is already convoluted and the usability needs much improvement, we're already talking about extra features and in which priority we should be adding them to the existing webpages...
Then I saw a comment by Jason Fried on his Signal Vs. Noise blog: "As sites mature they should be getting smaller, not bigger. Fewer pages, not more. Fewer words, Fewer paragraphs, Fewer options. There’s too much on too many sites."
Back to the drawing board again..
Monday, November 28, 2005
10 Rules for Web Startups vs. "Learning by Mistake"
Therefore it is with great joy that I read Blogger co-founder Evan Williams' article: "Ten Rules for Web Startups"
I can gladly say that I've been following (most) these rules without ever having learnt them at varsity (or at church for that matter). However, I must admit that most of these rules didn't quite come naturally...
We've had many heated discussions about "#1: Be Narrow". We see the potential for Skyrove providing IPTV, VoIP, free Internet etc. And maybe one day we will, but for now, we're gonna focus on one thing, and that's providing a solution where there currently is none.
#2: Be Different - "There are lots of people thinking about - and probably working on - the same thing you are. And one of them is Google. Deal with it. How? ..."(read the article to see how!)
Almost every time I tell someone about Skyrove I hear someone say: "But what if Google stole your idea and put 200 programmers on that problem tomorrow? You'd be screwed, wouldn't you?" I wonder if Brin & Page were asked the same question regarding Microsoft when they started Google.
My favourites:
#5: Be User-Centric - "User experience is everything. It always has been, but it's still undervalued and under-invested in. If you don't know user-centered design, study it (check). Hire people who know it(check). Obsess over it(check). Live and breathe it(check)."
#6: Be Self-Centered - "Great products almost always come from someone scratching their own itch. Create something you want to exist in the world (check). Be a user of your own product (check). Hire people who are users of your product(check). Make it better based on your own desires(check).
Okay, so what am I still doing wrong? Definitely #10: Be Balanced. I did go hiking in the Cedarberg this weekend, but it's the exception to the rule... "What is a startup without bleary-eyed, junk-food-fueled, balls-to-the-wall days and sleepless, caffeine-fueled, relationship-stressing nights? Answer?: A lot more enjoyable place to work."
I think with that said I'm going to spend some time with my family now!
Meet Joey - Skyrove Movie at Enablis Exposé
From my past experiences I knew only one thing: I hate PowerPoint presentations! We were scheduled to present last, and I anticipated that it would be very hard to get people's attention!
With only a week to prepare, I got hold of a friend whose brother is a prodigy when it comes to doing animations and short films. I drew a very rough storyboard and Adrian went home and did the drawings, animations and sound effects in 5 days of non-stop, no-sleep work!
It still needs a voice-over before we can put it on our website, but it worked like a charm for our presentation and we were swarmed with queries about Skyrove!
Click here to see the presentation (with my own, amateur voice-over). (Click here for script). It's a short PowerPoint presentation (I couldn't escape it entirely) with the movie on the last slide.
I followed VentureBlog's "The Dos and Don'ts of Presenting at DEMO" religiously. Particularly the first point: "DEMO is all about demonstrating your product". Of the 7 entrepreneurs who presented I think i only understood what 2 of them were actually doing. Many people were telling the audience how much money they made last year or who their biggest customers were.
You only have 7 minutes, so let your product shine!