I was shocked last night when, watching TV, I caught an infomercial for "WiFi franchises."

It came from a company called Transnet Wireless in Florida, which is offering a kit that lets "franchisees" get into the business of providing hotspot connectivity for $13,000. The kit includes a gateway, software, and some terminals that take cash. The commercial is filled with scenes of people sticking bills and credit cards into the terminals' slots for Internet access.

The idea is that you find places to put these devices, and maintain them, in exchange for a cut of the revenue. The real estate owner where you set them up also gets a cut. Of course, Transnet gets a cut, too.

The more I read the company's stuff the more my Spidey-sense got tingly. They make it seem like easy money, and I don't think it is.

Before their lawyer get huffy let me state that I don't suspect a scam. But I do suspect potential franchisees are being oversold. Let's look at some risks:

• Who pays for the backhaul? The site isn't clear, and those are real costs.
  
• What about the competition from T-Mobile and SBC, who offer the same price but for access to thousands of hotspots at once?
  
• More important, what about the freebies? I went out for a drink to The Decatur Angel last night and found they've installed a free 3rd Wave hotspot. The value they get from selling an extra Guinness or two during down times more than makes up the $55/month cost.
  

The problem I have with everyone who is trying to make a business charging for hotspot access is that they can't really control the real estate. That is if you want to charge for access, and your next-door neighbor is offering the same thing free, your customers can easily get teh free stuff without leaving your premises. And you are required under the law not to interfere with the the guy offering the freebie. That's the idea behind unlicensed frequencies -- they don't belong to you.