FHP Wireless

By Andrew Rachleff, Joshua Spitzer
2006 | Case No. E222
FHP Wireless develops and sells Wi-Fi 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 magnitute over alternative metro-scale solutions. The case follows the founders through the development of the FHP product, financing, and the company’s early attempts to bring its products to market. The case 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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