BT invests in FON, Wi-Fi

BT is again taking broadband risks. The carrier, which is more than halfway through its 21st Century Network project and was among the first to pursue fixed-mobile convergence (FMC), has invested in FON, a free WiFi service provider based in Spain. BT and FON plan to create a broad free WiFi network that will leverage the wireline broadband connections of BT's residential Total Broadband customers.

Those customers can opt in to a strategy that would allow BT and FON to use a secure channel on their home broadband routers to help expand the free WiFi coverage. Unlike grand revenue-based WiFi models that failed earlier this decade, FON has successfully built free coverage that has begun to win over BT and other carriers. As for BT, it might be able to use the WiFi coverage as a way to expand its bold, but not-wildly-popular Fusion FMC service.

For more:
- See this piece [1] in The Wall Street Journal
- ZDNet U.K. also has more details [2]