Doesn't this reselling violate the T&Cs??
I have no idea, like most people I haven't bothered to spend 10 to 20 minutes reading all the fine print - just signed along the dotted line. However there's tonnes of places out there like Hotels who sell wifi access.
Hotels will be on a business plan with business tees and cees that allow them to do this
putting an AP on the roof and sharing the connection and splitting the bill is one thing but actually setting up a hotspot and charging for it just doesn't seem right.
All the same, I'm sure the people using the service are happy enough to do so considering there doesn't sound like there is any alternative, commercial or otherwise