I love Linux, Ubuntu, for work and at Fon we use Ubuntu, and I also love Mac for my personal computing. But I strongly dislike Windows. So for me to read that in countries like Brazil, Microsoft products cost double of what they cost in the US when income is around 10% just makes me wonder. Why would anyone pay for Microsoft when Ubuntu is free and much more robust, easier to use and less likely to fail. I don´t get it.

T-Mobile has one of the largest WiFi networks in the world, but with AT&T getting the Starbucks deal, growing your network and keeping your dominant position in the market will be a tough and very expensive task. Each new WiFi hotspot means installations, payments to land based carriers and other costs that you are very well familiar with.

This is why I present you the opportunity of partnering with FON, the company I’ve founded and in which Google, eBay, British Telecom and other great partners have invested. If T-Mobile has the largest WiFi network, FON has the largest WiFi community in the world, with more then 200.000 FON access points around 8 times more than T Mobile. What makes Fon different? That Fon is built by the community member or Fonero. Foneros are nice people who like to share WiFi among themselves. But Fon also has a revenue model for our carrier partners and that is to share revenues from non Foneros who are the vast majority of the people in the planet. BTFon is a great case in point.

With FON users share their broadband connection via WiFi in a secure way, a valuable proposition for users, who share to roam the world for free, but also for ISPs as FON helps them gain new customers (pay at home and get free global roaming) and reduce churn, giving users more reasons not to give up their fixed lines even when they are mostly on the road.

You’ll see how partnering with FON makes a lot of sense in light of your HotSpot@Home strategy, providing your customers with more opportunities to save on their plans, while letting you leverage the cost and performance advantages of IP and broadband using WiFi in locations outside of the customer’s home, especially considering the increasing popularity of unlimited talk and data packages. Your customers could seamlessly connect to FONspots and call or surf the web with their T-Mobile phones. In this way you will gain an advantage for your T-Mobile GSM customers that your competitors don´t have. What I’m talking about is a chance to expand your network at a very low cost, giving your users free access to FON access points and helping with distribution of our routers (La Fonera) that will instantly work as T-Mobile hotspots once connected.

Should this proposal appeal to you pls write to me at martin@fon.es and we will talk some more.

Today a new kind of venture capital firm was launched, called Prototype Invest. It’s an early stage investor that doesn’t provide money in exchange for equity, like usual venture capitalists. Prototype supplies technology and guidance in exchange for equity. The company was founded by Michael Christensen and can count on a very experienced team.

People with a good idea but no programming or design skills will access a network of developers and designers that will help them create prototypes or full products. Entrepreneurs won’t have to pay anything for the service, but will give equity in their start up in exchange for it.

On their website they state “think of us as a Venture Capital firm providing software, web applications and guidance, instead of money”. This is really clever, as too many great ideas and brilliant entrepreneurs get stuck, unable to get capital from venture capitalists because they lack the competences and resources to make their ideas into proper products or prototypes, that make it much easier to get financing from a VC.

More then a new kind of VC, Prototype’s activity is complementary to traditional venture capital, as will help people with the best ideas building prototypes, pitching investors and finally raise capital.

Yes, I know, this not only happens in Spain, but as the following chart shows in order for somebody to take 1250 euros in cash home per month companies have to spend almost twice as much, 2,446.92.

In other countries in Europe this is also true, but not on such a low pay scale. What´s unusual about Spain is the enormous amount of taxes that the Spanish government collects from people who only take home 1250 euros per month. And after they are home with the cash they have to pay VAT when they purchase goods or services and many other indirect taxes. So even on a person who takes home a real net of around 1100 euros per month, his real earnings are 2,446.92 per month for an effective tax rate of 55%. What is interesting is that employees who take home a real net pay of 5000 euros per month, 10,000 euros per month and 15,000 euros per month also take home around half of what the company pays them. But the take is slightly less in percentage which makes socialist Spain quite regressive. The solution in my view is of course to lower taxes on the low income brackets and have the Spanish government be more effective in rendering its services.

I just read that WWII killed 60 million people and cost less than 1 trillion 1944 dollars. This amount, that translates to 5 trillion of today´s dollars, compares poorly to the current Middle East War involving Iraq and Afghanistan costing USA already around 3 trillion 2008 dollars, but with casualties of less than 200,000 on the “enemy” side (hard to know who the enemy is though) and only 4520 on the American side.

This is what Joseph Stieglitz has to say about this.

These costs (of the current war) are projected to be almost ten times the cost of the first Gulf War, almost a third more than the cost of the Vietnam War, and twice that of the First World War. The only war in our history which cost more was the Second World War, when 16.3 million U.S. troops fought in a campaign lasting four years, at a total cost (in 2007 dollars, after adjusting for inflation) of about $5 trillion (that’s $5 million million, or £2.5 million million). With virtually the entire armed forces committed to fighting the Germans and Japanese, the cost per troop (in today’s dollars) was less than $100,000 in 2007 dollars. By contrast, the Iraq war is costing upward of $400,000 per troop.

Now considering that Joseph Stieglitz is a Nobel Prize Economist, I am not surprised that he focused his analysis on cost. But all of us can agree that it is actually positive that wars are getting to be, in comparison, so expensive “per death”. This, and not moral or religion, may turn out to be the best deterrent policy for avoiding future armed conflict.

It is sad to think that peace may be achieved by parties being unable to afford war but then….so be it. It is a similar situation to a US finally getting to have clean air thanks to very, very expensive oil or global recession. Who knows, maybe God does exist… and he is one stingy banker.

I know that most people who read my blog are not Jewish and that makes sense since us Jews we are only one person in 500 in this planet. Still I want to wish all my Jewish readers a Happy Passover.

I know it´s hard to believe that a country could be at war and not know who his enemy is but this is the case with US in the Iraqi war. In this video I comment an article in the New York Times that details how presidential candidate McCain is confused about this crucial issue.

You can also watch this video in Youtube.

This South Park episode shows the mood I was in going around Paris in late 05 trying to connect to WiFi and was not successful. It was this anxiety that led to the idea that resulted in Fon. Necessity is the mother of invention as they say.