The IP addresses beginning with 169.* are the addresses OS X self-assigns when it can't get an IP address from a DHCP server. So those yellow pins are symptoms of the iP{hone,od} not being able to find a DHCP server, rather than of a cafenet DHCP server malfunctioning.
In theory, at least, it might be possible to circumvent this by hard-coding an IP address in Cafenet's range and entering the router and DNS, etc. by hand. But since I usually read a 169.* IP as a sign that the signal is too weak to be usable, I've never tried this.
The IP addresses beginning with 169.* are the addresses OS X self-assigns when it can't get an IP address from a DHCP server. So those yellow pins are symptoms of the iP{hone,od} not being able to find a DHCP server, rather than of a cafenet DHCP server malfunctioning.
In theory, at least, it might be possible to circumvent this by hard-coding an IP address in Cafenet's range and entering the router and DNS, etc. by hand. But since I usually read a 169.* IP as a sign that the signal is too weak to be usable, I've never tried this.