Deutsche Telekom could acquire a stake in Madrid-based wifi operator Fon¸according to a media report.
The companies are said to have signed a letter of intent, according to the Wall Street Journal citing people familiar with the discussions.
It is not…
Deutsche Telekom could acquire a stake in Madrid-based wifi operator Fon¸according to a media report.
The companies are said to have signed a letter of intent, according to the Wall Street Journal citing people familiar with the discussions.
It is not clear what percentage of Fon the German incumbent might acquire or how much it is looking to invest in the privately held company.
Fon says it operates seven million wireless hot spots, which could appeal to DT to address increasing data traffic.
Last month incoming Deutsche Telekom CEO Timotheus Hottges said the incumbent will invest heavily, primarily in its network in Germany, with the aim of getting the company growing again in 2014.
Fon operates in a number of countries in and outside Europe and has partnerships with telcos including Belgacom, BT and, most recently, KPN.
The wifi operator’s technology works by broadcasting two dedicated wifi signals from its users’ connections, one private for the owner only, and one public that allows the owner to share parts of their wifi connection with members of Fon’s network.
More than 5 million people share their hotspots using the technology across the globe and can connect to other Fon hotspots for free.
