Subject category:
Entrepreneurship
Published by:
Stanford Business School
Version: 29 September 2006
Length: 16 pages
Data source: Field research
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Abstract
FHP Wireless develops and sells Wi-Fi (wireless fidelity) networking hardware with value-added software to create ''wireless meshes'', the technology that makes metro-scale Wi-Fi coverage possible. A wireless mesh connects many wireless routers together in a network that reduces backhaul (the connection between a particular network and the Internet) costs by an order of magnitude over alternative metro-scale solutions. Follows the founders through the development of the FHP product, financing, and the company''s early attempts to bring its product to market. Concludes as the company faces several strategic alternatives to addressing its unexpectedly slow revenue ramp. The company must choose between several target markets, and the decision is complicated by a declining cash balance and a new investor.
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Abstract
FHP Wireless develops and sells Wi-Fi (wireless fidelity) networking hardware with value-added software to create ''wireless meshes'', the technology that makes metro-scale Wi-Fi coverage possible. A wireless mesh connects many wireless routers together in a network that reduces backhaul (the connection between a particular network and the Internet) costs by an order of magnitude over alternative metro-scale solutions. Follows the founders through the development of the FHP product, financing, and the company''s early attempts to bring its product to market. Concludes as the company faces several strategic alternatives to addressing its unexpectedly slow revenue ramp. The company must choose between several target markets, and the decision is complicated by a declining cash balance and a new investor.
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