Making Business Decisions I
With $100 million in equity financing, Current Communication plans to introduce broadband service over power lines in your city later this year. Broadband Internet Access from AC-sized plus connected directly into electric outlets could become a new service option in the cafe for your customers.
Broadband over power lines, or BPL, networks promise 10-mbps symmetrical Internet access as well as a variety of “smart grid” electric services. The rates for BPL are significantly cheaper than DSL and cable. For the cafe, BPL would enable true plug-and-play Internet capabilities direct from any power outlet in the store. Customers could simply plug in and receive Internet connectivity.
Your technocrat employee, Nick Zele, is pushing you to be the first to implement BPL. He believes it would give the cafe a competitive advantage and you are excited about the cost savings.
- Analyze BPL and create a list of the pros and cons of deploying a new, unproven technology.
- Would you implement BPL based on your findings?