FON strategy

FON, the Spain-based “social router” company, is providing La Fonera Wi-Fi routers for $30 to anyone who accepts to share its wireless access. In a attempt to enter the US market, it now offers free the La Fonera Wi-Fi router to anyone living within 1500 feet of a coffee shop that sells wireless internet access, with the condition to resell access to their hotspot for $2 per day. The goal is clear: go head to head with Starbuck's T-Mobil WiFi enabled coffee shops. Stabuck WiFi costs $6 for one hour and $10 for a day. The is therefore a direct and price-based strategy. FON claims 300k registered users, of which 30k in the US.