2006 15
Jazztel and Fon
Published by MartinVarsavsky.net in Fon with No Comments
Jazztel is the second largest publicly traded telecom company in Spain. I founded this company in 1998. I ran it until 2002. Jazztel is now managed by very able entrepreneur Leopoldo Pujals, best known as founder of Telepizza, a huge pizza chain present in 5 countries and by far the largest of its kind in Spain. I am pleased to announce that Fon and Jazztel reached an agreement today in which Jazztel will start selling its services Fon Ready. This is the second such announcement after our agreement with Glocalnet in Sweden. Both Jazztel and Glocalnet are leading challengers to the incumbent telcos, Telefonica and Telia. Why do ISPs sign up with Fon? In telco lingo, because we increase their ARPU and reduce their CHURN. For the layman this means that we increase revenues per line and increase customer retention. And all this at no cost to the ISP as FON pays for all the software integration and software addition to the ISP wifi routers. Fixed line ISPs never thought that they too could become high bandwidth wireless broadband players, with FON they can and they become members of a global alliance a la GSM that does so. If you are with an ISP anywhere in the world please contact me through this blog.
Follow Martin Varsavsky on Twitter: twitter.com/martinvars
No Comments
Andres on March 16, 2006 ·
Congratulations on the great news! If anything, I am sure this agreement will attract even more pulicity and media coverage to your venture.
It is not clear to me how exactly an agreement between FON and Jazztel will decrese churn for Jazztel… unless you tell me that customer-initiated churn today at Jazztel is characterized primarily by customers seeking a type of internet roaming, I strongly doubt that this will impact churn. From what I have read, churn at Jazztel is all about customer service (or lack thereof) and this agreement will by no means help that area.
Regarding ARPU, can you give specifics about the economics of your business model, and more importantly, revenue share with Jazztel and/or other ISPs you have teamed with?
Thanks.
sara on March 16, 2006 ·
mazel tov
Martín Varsavsky on March 16, 2006 ·
Andres,
Brief answer. Many people give up their monthly connection if they travel or ar not at home a lot. Now with Fon you pay at home, enjoy anywhere in the world where there are foneros, but if you stop paying at home you have to pay 2 euros per day when you find foneros and 10 euros when you find other networks.
And the ARPU goes up, because when aliens pay half of the money goes to the ISP that we team up with.
Regards,
Leave a Comment
You must be logged in to post a comment.
Brussow on March 15, 2006 ·
Ehnorabuena Martin !!
Great news for the foneros in Spain !!