2012 22
Fon Reaches Five Million Hotspots
Published by MartinVarsavsky.net in Fon with No Comments
Today, I am happy to announce that the company I started just over six years ago, Fon, has just passed the important milestone of five million hotspots.
Why is this important? Because while many have tried to build a large and global WiFi network, Fon has been the only company in the world to actually achieve this. No other network even comes close to us. Fon is everywhere, even in residential locations, where no other WiFi hotspots can be found. Brussels, Lisbon, London and Tokyo are completely covered with Fon WiFi.
We are growing so fast, that in 2011 alone we added two million new hotspots. This year, I predict that Fon will grow its number of hotspots by at least 50 percent, so there is lots of work ahead to make sure this happens.
I am proud of Fon and its large, global WiFi network. I started this company with a goal to create a truly global WiFi community, where everyone sharing a little bit of their connection gets free WiFi anywhere in the world in return.
Every day, I feel that we’re getting closer to this goal. The WiFi revolution continues.
Published in Techcrunch
I just spent a week in NYC. What the city did vis a vis crime reduction between the 80s and 90s it did vis a vis start ups between the 00s and the 10s. It’s a whole new tech scene here. And it’s very new.
I remember when I invested in the first round of Tumblr with John Borthwick the tech scene in NYC was minimal. And that was as recently as 2007. On this trip I visited General Assembly and it was buzzing, and they are not the only nurturing grounds for entrepreneurship, there are many as well as many start ups who are making it big. Also what has happened in the last decade is that now Brooklyn is not a lesser cousin but an integral part of NYC as well and there are a lot of start ups and tech people who live there. It is interesting to see how Brooklyn has made it and NJ has not considering that they are both a river crossing away, but Brooklyn has a history and beauty that is tough to compete with.
Here’s a short and random list of reasons why I believe NYC is making it:
-when you leave work you have a lot to do.
-NYC is more environmental than the life in your car Silicon Valley. The ecofootprint of a New Yorker in his high rise apartment is lower than that one of a SV techie in his house in Palo Alto.
-NYC is way more than tech.
-NYC is half way between SV and Europe and SV is in theory closer to Asia but flying times are the same.
-Bloomberg, who had his own financial internet before the internet really gets it and is promoting NYC as a tech town every week, indeed this week he was at Tumblr promoting his tech friendly policies.
NYC is now a true rival to Silicon Valley and that is great news. Chicago is also happening I hear, thanks to GroupOn, not my favorite start up but still a force. And then there is London with Spotify, Badoo and many others. Overall I think that what happened to USA in the last few decades is happening to Silicon Valley now. SV is still number one but in relative terms shrinking in relevance. NYC, London, Berlin, TelAviv, Tokyo, Shanghai/Beijing/Taipei, Bangalore, all valid alternative places for tech start ups.
I lived in NYC for 18 years, between 1977 and 1995. Now when I visit I realize that I owe a lot to that city, my education, my first successful ventures. Would I move Fon to NYC? Well we decided to open our US office there and not in SV. But for us, the engineering talent we find in Spain would be hard to replicate in NYC. Spain as troubled as it is, is a great place in which to have your start up. With 47% youth unemployment and many talented young people if you have a great project you can get the engineers you need for it. It is true that Spanish work ethics are not as good as the American work ethic, but people are realizing that either they truly work or the country will sink. And the attitude is better now than a few years ago. So while I won’t move back to NYC for now I will go more frequently. There are too many admirable people there!
Correction, after writing this post Daniel Ek contacted me to say that NY has become so attractive for Spotify that now they have more employees in NYC than London. I also forgot to mention that large companies like Google and now Facebook have very sizable offices in NYC.
2012 10
On why Israel should not attack Iran
Published by MartinVarsavsky.net in Arab revolts with No Comments
I am Jewish and I can’t understand why attacking Iran over the threat of nuclear is a great idea. It’s not that I believe what Iran says. Of course they will develop nuclear weapons, but also Pakistan has nuclear weapons. And Pakistan is a very unstable country and we live with them and their weapons. And India, a country which most of us find easier to live with, has had to live with Pakistan, their weapons and their terrorists.
Pakistan is a country ruled by people who like us but populated by people who mostly hate us, and I don’t mean hate Jews, but the whole West, India and China. Polls show that in the mid 00s most Pakistanis liked Bin Laden as a leader. And some clearly liked him enough to give him shelter for so many years. And this is a country has nuclear weapons and we tolerate it. And Israel and maybe EU and USA are planning to go to war with Iran because they may have nuclear weapons and be where Pakistan is today. Going to war with a country because it will have nuclear weapons is hardly a way to increase world security. Why didn’t USA go to war with USSR when they developed nuclear weapons? Why didnt we go to war with North Korea whose lunatic leadership is far worse than the Iranian leadership. In each of those circumstances we estimated the cost of war to be greater than the cost of preventing nuclear proliferation. North Korea for example, could already wipe out a third of South Korea with conventional artillery, in the face of that threat, we let them go nuclear. I am sure the South Koreans would prefer another neighbor, but they do what they can given the circumstances. Even after a nuclear Iran, Israel’s situation won’t be as bad as that of South Korea at war with a nation that borders it and can destroy it with conventional and nuclear weapons and threatens to do so very frequently. Plus Iran is a threat to Israel already through its proxy armies of Hezbollah and Hamas. But Syria was partners with Iran and another serious threat to Israel under the leadership of Bashar Al Assad and look at where he is now, exterminating his own people, hated by his own people. Qaddafi said there was going to be a Middle East without Israel and we ended having a Libya without Qaddafi. I think there is enough evidence that Iran is going in the same direction. Preventive warfare is flawed. It’s a doctrine that says that because you may not like war in the future you start a war now. We squandered trillions of dollars of USA and EU money with this doctrine, and precious human lives, and achieved nothing. Anyone doubts that Saddam Hussein would have survived the Arab uprisings? If we intervene we should so so to tip the balance, not to go as an invasive force trying to conquer, police and rebuild a nation for a decade. It’s wrong and we can’t afford it.
Nuclear weapons have this weirdly positive aspect to them that their utilization is so serious, so incredibly harmful, that those who have them so far in history have stayed put. It’s as if their owners developed a deep sense of nausea just about having them. The only exception in history, is of course USA, who whether we like it or not, was the only nation brutal enough to overcome their nausea and use them. Probably because nobody had used them before and the images of Hiroshima and Nagasaki were not on anyone’s minds.
I think that we should all put more hope in the people of Iran. Iran is the opposite of Pakistan, a country ruled by people who hate us but populated by people who are fed up with them and like us and our lifestyle. Every protest in Iran seems to be about people who want to be free and a government who puts them down. So we should not give these freedom seeking people who almost overthrew Ahmadinejad, a real reason to hate us. And let’s remember that under attack everyone becomes a nationalist and sides with whoever is the dictator who rules the country. From a Jewish point of view, now that the Muslim world is finally focused on their problems attacking Iran would be to go for the limelight at the worse possible moment.
We should accept that this situation is ugly, confusing, tough to deal with and there no easy answers. And for Israel attacking Iran a country of 80 million people that is twice as big as France and far away is a daunting task, nothing like the Operation Babylon of 1981. Israel, USA, EU, should continue with covert operations and other tactics that are short of war, and put all sorts of pressures to show how great life would be for all if Iran stops. But at the same time we have to learn to live with our fears, accept that Iran may go nuclear, and focus on promoting a change of leadership that is more aligned with the Iranian people and our interests.
2012 6
On managing my time
Published by MartinVarsavsky.net in Entrepreneurship with No Comments
My answer generally centers around the fact how I have a great team of managers, that they are so good and reliable, that Fon has an amazing pool of talent, I also talk about how much I delegate, and that is all true.But there is another side to this question that I have not told journalists. I have not done it because I fear sounding obnoxious, elitist, or just weird. But this is my blog so if I don’t do it here where else? So here’s the other answer, the more private answer of how I have managed and manage my time.-I don’t watch TV, that alone gives me 14 years more of life for doing other things! If I watch anything it’s Netflix or Youtube, that’s where I get my TV content and movies from. I rarely go to movie theaters and watch all movies in our home theater with the family.-I am not interested in professional sports, another activity that seems to consume endless hours of many people including most of my guy friends. The Super Bowl went unnoticed. I only watch the World Cup and that is once every four years. Not watching sports, nor commenting or talking about them, is a real time saver. -I read less books than others, I just don’t have 30 hours to devote to each one of them. I read a lot on the net, and some magazines also short stories during flights. But just like I practice sports much more than I watch sports (I mountain bike around 8 hours a week) I write much more than I read. I read a lot in my 20s, now it’s my time to contribute to others by writing. Yes I did read the Steve Jobs bio, or some Nick Hornby, Martin Amis recently. But reading whole books takes too much time for me to be able to do it on a daily basis. I read when I am on vacation, when I sail. That’s when reading feels great and is a real pleasure.
-Personal grooming: many top business people spend a great deal of time selecting their clothes, getting haircuts, manicures, pedicures, massages, and all sorts of time consuming personal grooming activities. I instead sometimes cut my own hair, dress simply, wear sneakers and jeans, never wear ties or suit. My wife chooses my clothes. Even with a simple wardrobe, small accessories like a luxury clone watch can add a polished touch without taking much extra time. This alone saves me 83 minutes a day according to some estimates.
-Logistics and commute (this part is only useful for entrepreneurs): I sometimes drive, but I have a driver and while I go anywhere, I work in my car. I don’t need to look for parking. This is clearly a luxury but it is a time saving luxury. Also by design my home is 10m from my office and 20m from the airport, also near my kids schools. I pick up my kids from school every day and spend the afternoon with them. When I travel, we have homes in New York, Paris and London. This is partly because I don’t like to pack nor check in hotels, in those homes I find all I need. I can go in and out quickly. I also have another special luxury which is a small private jet and therefore spend much less time at airports and travel more efficiently point to point. The Citation V increases my environmental footprint but I have built a lot of wind farms to pay for my sins
-Even though my company’s name is Fon I rarely make phone calls. I communicate over every imaginable platform, Facebook, bbm, whatsapp, Skype, Google Talk, you name it, but phone calls are for family and friends . In business I prefer electronic media or in person meetings.
-I don’t drink. Yes this one is a shocker but I rarely drink, if anything a glass of wine with a meal. I dislike beer and liquor. Drinking is something that consumes an incredible amount of time in the lives of other people and renders them useless for a lot of other activities for a significant percentage of their lives. Not drinking has put me in difficult positions doing business, especially in Japan. Same with drugs, I tried many, but didn’t like any. Cigarettes, cigars, I don’t like any drugs. Being sober at nights, on weekends, already puts me ahead of most of the population in terms of productivity.
-I rarely do business lunches and dinners and spend most meals with family and friends who I really care about. Business meetings are at the office and in the morning. I work from 9 to 2. Afternoons are for family and sports. Evenings for family and friends. My business meetings instead are invariably short. I am always online and work online. But I don’t like to be at the office just for being at the office. When I am at Fon, my door is open and people can walk in for short meetings. People at Fon know that I treasure my time, but they also know that I am there every time when I am really needed. Of course I do show up for emergencies, road shows or those moments of the year when I am needed all day. But that is an exception not a rule like with anyone else who does spend their afternoons at the office. Being CEO allows me that benefit. If I was anything else I would have to be at the office all day. To celebrate special moments or just unwind after a long day at work, you may play online ufabet casino games.
-I am punctual and have little patience for those who aren’t. I don’t make others wait, I don’t wait for others. The word must have gotten around on this because we all tend to be on time. I don’t waste time waiting.
-I make social media work for me, sometimes people say, how do you get work done if you spend so much time on social media, but I use social media to take notes, like I have an idea for a business and I blog it, I share it, I work collectively with people, social media looks like a waste of time for others but it saves me time, I recruit on twitter, I brainstorm on Google+ or my blog, I work inside social media, get ideas, its a sanity check many times, crowdsourcing saves me time. When tweeting I use Tweetdeck to time my tweets so they appear at different times of the day when I am doing other things. This allows me to tweet across time zones although sometimes it angers people when they think I don’t answer and I am asleep. I also developed an Android app to listen to my social media on my bike. It’s called Radiome and it reads your social media while it plays music, it’s perfect for my bike.
-Against what many think I sleep and I sleep well, 8 hours or so. Sleeping is an important time of the day. I sleep much better with my wife than alone when I travel without her. Lately I sleep with our 5 month old baby and I still manage to sleep reasonably well because we are lucky enough to have a baby who sleeps 11 hours almost every night. She sleeps much better than my older kids and I think it’s because we adopted co sleeping.
-I go to a couple of conferences a month. What I like about conferences is sometimes the content, like at TED, but mostly the fact that I get to see a lot of people all at once there. Many think conferences are a waste of time. I find them a very efficient way to have a lot of in person meetings in the same place.
-I say no to a lot of formal invitations, events, dinners and business meetings. I see time as sailors see wind or photographers see light, as something to use, manage and shape, not as something to be a victim of, or to see go by. I rather stay at home with my wife and kids than go to some useless business meeting.
-I take a lot of vacations. Around 10 weeks a year of vacation. But only one week in which I am truly disconnected and on vacation. My other 9 weeks of vacation are devoted to family, friends, sports and meditation. Meditation in the sense of thinking deeply about some problem that I am trying to solve. Like my best ideas for work I have while on vacation. Maybe because I think my work is a vacation. Because I love what I do. This is something I can do because I am an entrepreneur, because entrepreneurs get paid for their ideas, not for their time.
And yes, I do have a great team of people who work for me and help me out and I am very, very thankful for what they do.
2012 31
On how the reputation of Germany may go the way of the IMF
Published by MartinVarsavsky.net in Economy with No Comments
I wonder what many wonder, and that is whether Angela Merkel’s insistence with austerity is wise. I think that what Southern Europe needs is not to reduce the overall level of spending. Doing so it risks to make the economy shrink and budget deficits expand without end in sight. What we need to do instead is to keep the level of spending and investment but change its nature. We have to tweak with the economy, not kill the economy. Focus on what works, kill what slows us down.
I agree that in the South of Europe there was a lack of reform and a great deal of waste. In Greece, Italy, Spain, Portugal a lot of privileges were given to people who did not deserve them, growth was built on credit, and the economies collapsed as a result. There was and there is corruption in most of Southern Europe, more than in the North, and many white elephants were built, airports that are not used, high speed train lines that are not needed.
But a drastic stop to a lot of economic activity without reasonable alternatives to generate growth will only exacerbate the problem. This is happening in Spain right now. We are cutting spending, we are not focusing on intelligent credit creation and we are making many viable businesses suffer or die of credit starvation. We need to create emergency credit lines for all businesses who are hiring. We have to find the pockets of growth and support them. We can’t indiscriminately cut spending.We have to move workers from dying industries to growing industries, we have to reeducate the population for the globalized economy of this century. The challenges of evolving from an industrialized economy to a service economy are not new, but now we have to deal with the challenges of evolving from the service economy to the digital economy. None of these problems are financial or monetary, they are real and require real intervention. Fiscal tightening is akin to chemotherapy, we can’t kill all cells because some are bad. We have to have a smart bullet approach to economic intervention. Which if you think about it this is what Germany did to itself. Because Germany is making the same mistake as the large shareholders of the IMF did. They applied for themselves much more elaborate and detailed growth policies that worked and ask Latin America to implement simplistic, “chemo” type policies. The results were disastrous.
Germany is doing to Southern Europe what the IMF did to Latin America for decades and this is dangerous for Germany and Southern Europe. In Latin America by preaching austerity at all cost the IMF created failed policies and a decade of stagnation. Moreover as its failure became apparent the IMF ended up being mostly hated by Latin Americans and around the world. Germany could end up in the same spot. This would be sad because in the end we all know that Germany means well, it is just applying the wrong economic model as the IMF did. The USA, closely associated with the IMF lost most of Latin America sympathy in the last 15 years. It is sad to see how many Latin Americans now think that China is a better country and economic model than USA and have emulated China with regimes such as that of Venezuela, Nicaragua, Ecuador and Bolivia. Same could happen to Germany and the German model if it insists in implementing wrong policies. The European Union could fall apart and Southern Europe could end up experimenting with populist political regimes that only make the whole situation for Europe much worse.
There’s an active debate on this post in Google+ you may want to comment here.
One of the reasons Latin America is doing better this decade is because a lot of its elite has been educated at the best universities in the world, mostly in the US. One example is Marcos Galperin who built Mercado Libre into a multibillion dollar market cap Nasdaq giant, something that I think would have been hard for him to do without a US education. And there are many, many others. For decades now the Latin American elites were educated in the US and now they are finally in charge of the most productive sectors of the local economies.
Maybe Spain should do the same. The Spanish education system kills the imagination of the best and brightest students. I know this because we have had to re educate many of these students at the companies I started in this country including Jazztel, Ya.com and Fon. We have companies that are also universities in a sense, whose graduates go and build other companies that are more in tune with the digital era. There are some exceptions, especially in business studies with IE and IESE ranking very well globally but the average education available to Spaniards is very mediocre with no Spanish Universities in global rankings.
Now it so happens that it is not that expensive to send Spanish students to study abroad. Some Spanish corporations already give grants for this. Indeed just today I signed a recommendation letter for a Fon employee to study at Stanford partly financed by Caja Madrid and I hope they take him. But this could happen at a much more massive scale if the focus was Northern Europe. Studying in the UK with a pound at 1.19 is not as expensive as it used to be. Tuition is low for the quality of education they give. Indeed you can get a whole education in the UK for the cost of a year of studying in the US. Sending thousands of Spanish students to study in the UK, in the Netherlands, Germany and other Northern European countries who are doing better than Spain, could be a way to leapfrog many of the antiquated and dated Spanish professor body who with some notable exception is destroying a generation of Spaniards. It is also a good investment since education runs a big deficit and an 18 year old who studies abroad gains this education. Yes, there is a risk that they may stay but if they do it is not brain drain which is what happens when a country invests in a university education, as India many times does, for the graduates to end up in the US or other nations.
We live in an era in which industrialization is being superseded by digitalization, and Spain is not ready to educate its population for this change. The result is the highest unemployment rate in the OECD: 22%. A structural unemployment that is based on a misfit between the skills of the population and the jobs available in the marketplace. There is no unemployment in the tech sector in Spain, but there are not enough highly educated candidates for those jobs. We have to fix that and fix it before this country falls apart. Sending our best and brightest abroad could be part of the solution. We can’t wait for the education system to be fixed. Not with the lifetime jobs that we have provided to the mostly incompetent and untrained professors who populate it. And this is not true of Spain alone but of a lot of Southern Europe.
2012 26
Fifi cherche WiFi – Best Fon ad ever
Published by MartinVarsavsky.net in Fon with No Comments
Belgacom (powered by Fon) has created an awesome campaign to advertise its fonspots. A dog called Fifi whose innate talent is to smell wifi hotspots. In the middle of 2011, we announced the agreement between Fon and Belgacom and two months ago we reached 100.000 hotspots. Nowadays, we have 300.000,.
Here you can see the video. The story would be as follows: Jean has a dog called Fifi that barks when she finds a wifi hotspot, because of Fon and its agreement with Belgacom, this virtue has turned out to be his worst nightmare as she never stops barking.
2012 25
Yoko Ono’s thoughts. My disappointment.
Published by MartinVarsavsky.net in MV with No Comments
Yoko Ono was at DLD Conference in Munich last Sunday and I made room on my agenda to see her. I had heard about Yoko all of my life. Well as it happens it would have been better that I had not gone to see her as I now have a really negative impression of her. I will summarize it in three comments she made:
The first one was that babies born through C-section suffer trauma because they were never hugged and said goodbye to their mother.
Another one was that babies conceived via IVF can never get to love their father and mother. No comment was made about the ones that are both conceived via IVF and born via C section but you can only guess how sorry she feels for them.
So by then she had hurt without reason maybe around 20% of all babies in the planet but that was not enough. She went on to insulting the rest of the planet by saying that we don’t need to wait for nuclear war so only the cockroaches survive because us, humans are the cockroaches. And she went on to explain her point.
In the end she changed her tone and said a lot of positive things about humanity, she even said, “all you need is love“. But I guess if you are an IVF conceived baby love is not enough, as you will not love your parents.


