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Fon is a community WiFi provider whose goal is to create a worldwide network of wireless users who agree to share their broadband connections with others who do the same. This might sound like a pipe dream, but they've gained enough traction to score backing from Google and Skype. Their latest project is to bribe people who live near Starbucks (or any other cafe, they say) to join their network and offer a cheap WiFi alternative to coffee shop customers. Fon gives you a free router, you share your existing broadband connection with Starbucks customers for $2 a day, and Fon splits the profits with you.
Sounds like a good deal since a T-Mobile day pass for WiFi access at Starbucks costs $10, but we'd bet Starbucks is none too pleased with this idea. On one hand, Fon's plan is no different than someone setting up a coffee shop right next door. They're offering a competing service to one offered by Starbucks, and at a much lower price. All's fair in the market economy, right? On the other hand, Starbucks probably wouldn't let Joe's Coffeehouse advertise its lattes inside one of their stores, and this is kind of what Fon is trying to do. If someone opens up their laptop in a Starbucks with a Fon hotspot nearby, they're going to see the Fon network pop up right next to the in-house one. It would be like going into a McDonald's and ordering a Whopper from the Burger King next door.
Chicagoist loves the idea of a price war between WiFi providers, and we were pleasantly surprised to see how many Fon users there are already in Chicago. But we doubt Starbucks is just going to let Fon do this without a fight. Expect colorful new legal terms like "digital trespsassing" to pop up as this story unfolds.
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There is actually a place where you can get FREE WiFi, in fact 79 places you can get FREE WiFi in Chicago... the Chicago Public Library. Every location has free WiFi and instructions at the front desk on how to link to it. No filters, no special encryption settings, user names or passwords are required. Don't even need a library card... though why not get one while you are there?
Nonsense analogy. If Starbucks puts a cell tower in their coffee shop, am I being presumptious by going through my own cell provider while sitting in their shop?
Honestly, I'm having a hard time wrapping my head around this. But you made me think: it would be one thing if you went into a Starbucks, didn't buy anything, then started using a Fon network. But if you buy some coffee or food, then sit there while using someone else's WiFi, it's not taking anything away from them either. You're doing what they expect the average customer to do, and it's no different than if you connected your laptop with a cell modem or used a Blackberry. If you put it that way, then you're right.
It's a 1mW-max signal, in an unregulated signal band. I don't think Starbucks has any legal recourse for access points visible from within their stores. Maybe it'll push TMo/Starbucks (and, with luck, maybe the airports) to drop prices to compete. It doesn't cost much of anything to run an access point, as Fon is demonstrating, and free access tends to draw in extra, usually paying, customers, anyway, so I've never understood why the chains that charge for access charge anything at all.
I say good for Fon, Starbucks had it coming to them. In this day of incredibly cheap broadband, there's no reason to be charging people for internet access who are already buying your stupidly overpriced coffee.
Of course, if Daley's plan to make the city a giant hot spot ever goes through, Fon is kind of screwed.
Yeah, if you don't buy anything it is a little different. But really no more than sitting there and reading a book without buying anything (I hope I don't have to read their crappy books or buy their crappy CDs instead of bringing my own).
Starbucks original MO was to provide a nice environment, the so called third space, where people will want to hang out. If people are hanging out, then they will more than likely end up ordering some coffee or cookies or coffee pot or whatever. The stores are purposefully designed with ample electric outlets so people can plug in their laptops and thus stick around a little longer.
Why not force me to leave my battery at home (since the electricity was bought from another provider), and then I would have to pay them for electricity I pull from their outlet. Neither they nor us would think of doing something so silly.
Starbucks needs to figure out what they want to be. If they want to be a place where the goal is to turnover as many people as possible, customer experience be damned, then they should by all means continue their trend of removing seating, adding drive thrus, and nickel and diming customers. They should take note however that local coffee shops learned from the original Starbucks and are picking up where Starbucks left off.
I go to the Andersonville Starbucks all the time and use free internet from Charlie's Ale House. I would guess that many Starbucks are already located near enough to free wi-fi sources for their patrons to connect to the internet without going through T-Mobile. Why in the world would nayone pay 10 bucks to get online when there are so many free options? (the Burger King down the street from where I work has free wi-fi for God's sake.)
I am Martin Varsavsky of www.martinvarsavsky.net founder of www.fon.com. First thank you for this post. Secondly I truly think our offer helps Starbucks as now Foneros will also go to Starbucks and surf for free while sipping their favorite frapuccino and those who are not Foneros (most people) will be happy to only pay $3 the first day and $2 thereafter. I am pleased to report btw that over 1000 people are installing Fon near Starbucks.
Hey Martin, wait until your "foneros" have their broadband connection turned off by their ISPs for violating their "terms of service" (you can not resell your internet connection in most US TOS's).
You business model is screwed. You will be out of business in 6 months.