Hotspot

HotSpotNet Wireless
HotSpotNet Wireless is a company founded to provide wireless Internet access to business travelers in hotels, airports, conventioncenter….
It was instituted in June 2001. Actually (2005) they must make a decision. The two alternatives are:
- Continue financing the company at a highcost by debt.
- Accept the merger proposal with Chrysali
Although with both alternatives the company gets positive and negative things, from my point ofview I think the company should finance itself.
If HotSpotNet Wireless is not associated with Chrysali, it obtain several benefits such as maintain thecompany name, continuing as an independent entity as probably the WISP business model (used by HotSpotNet) had a much brighter future than the HSP model (usedby Chrysali). Another pros could be that they having the “know how” of the company, one of the main strengths of the company and they don´t have to sharewith the other company. Finally It alone has experience in the sector because it was the first company in a country (Germany), and if HotSpotNet gets thetrain station bid they could win a lot of money alone.
By the other hand with this option they have others problems like the interest is too big for thecompany for that they have a lot of losses for the last years. They may try to negociate an interest and get the lowest debts to settle and make a profit.As a conclusion the company must continue alone, it is better for her business continuity.






By Isabel Rubio Ruiz