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.

PROJECT FOCUS:

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?