SPAIN - FON secures EUR 22m from blue chip investors

The company also announced that Danny Rimer (Index Ventures), Mike Volpi (Cisco) and Niklas Zennström (Skype) joined the board.

Founded at the end of 2005 by entrepreneur Martin Varsavsky, FON's objective is to build a global wifi network with one million hot spots by 2010. FON's unique approach is to enable FON users, or 'Foneros,' to synchronize access points so they pay for one connection at home and have instant access to a global FON wifi network. This will allow anyone to access their favorite applications, such as Skype or Google Maps, on any device, anywhere, anytime. It provides an extensive network for ISPs to expand their reach globally. Developers will be able to create new technologies based on the open FON platform.

FON is a secure 'by-the-people, for-the-people' network. FON has registered 3,000 members since it went live with its service in November 2005. The company plans to use its funding to grow the network of Foneros and support the growth of wifi worldwide, particularly in countries where broadband is currently unaffordable to the masses.

FON will drive its revenue from a multi-tiered subscription model. Members will sign up in one of three Foneros categories: Linus, Bill or Alien.

Linus members share their home wifi hotspot with the FON network and gain access to free roaming throughout the FON network. Bill members will share their wifi hotspot with Alien members for a fee. Bills do not benefit from free roaming. Bill subscriptions are not yet available.

The Alien members pay to connect to the FON network on an as needed basis. 50% of revenue generated from Aliens will be shared with Bills. Currently, Alien memberships are available on a free trial basis.

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• Topics
• Early-stage
• Southern Europe
• Index Ventures