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Turning Home Broadband Into Public Wi-Fi

Free Wi-Fi?Time-Warner Inc. is beginning a radical idea - turning private home broadband into public Wi-Fi hotspots.

Fon was founded in Spain in 1995 on the premise that people shouldn’t have to pay twice — once at home, then again in a coffee shop — for Internet access. At first, the company offered software that let members, called Foneros, turn Wi-Fi routers into shared access points, but it took hours to get up and running.

In the fall of 2006, Fon, which counts Google Inc. and eBay Inc.’s Skype among its investors, started selling and sometimes giving away its own branded wireless router, called La Fonera. Since then, it has distributed about 370,000 of them worldwide.

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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