If you recall, startup Fon aimed to build a global network of one million wireless hotspots by the end of four years. The idea was to convince users to install Fon firmware on their Linksys residential routers, turning them into a unified community of global hotspots. As of June, 54,000 users had signed up to be "Foneros".

The Spain based operation offered three levels of participation: "Bill" users get a cut of whatever profit is made via their hotspot but cannot use other Fon hotspots for free. "Linus" users get to use any hotspot, anywhere, for free. "Aliens" are just customers, and pay to access to the hotspots.

The somewhat original idea (see Linspot) received a lot of hype from bloggers with financial ties to the project last winter (See WSJ, 2/9/06). Hefty investment from Google and Skype (to the tune of $21 million) fueled the fire, and Fon became larger than life for a short while. Since then, the project has been comparatively quiet.

One problem Fon faced was that real providers have cherry-picked the best wireless locations (not that your Dayton suburb window-sill isn't lovely). Those areas are also already flooded with routers from the nation's largest, free ISP: linksys, and increased 3G deployment.

ISPs also aren't thrilled with the idea of their bandwidth being re-sold, and Fon likely violates your contract with your service provider. Even the Wi-Fi friendly Speakeasy told the company to back off when Fon cited a non-existent business relationship.

Back in June, we noticed the company started offering either a Linksys WRT54GL or Buffalo WHRG54S for only $1, with Fon firmware installed. To prevent people from buying the router and simply flashing it with third party firmware, users were forced to register it and swear allegiance to the company mantra.

Though that deal has expired, the subsidizing of Fon's "revolution" continues. Fon has finally shifted away from firmware flashing and has released their own $5 router. The new device, named "La Fonera", is made by Taiwanese networking vendor Accton Technology, and is explained in this video by Fon founder Martin Varsavsky.