Gridline will install and maintain the system equipment and control software for each area where it provides broadband services (“Service Area”) and throughout the power grid as required to connect end users with an Internet access point. Gridline will work with ISPs for wholesale Internet access for all Gridline customers and end-users at such Internet access points. Gridline estimates that it can initiate service for end users through this system for a competitive cost per end user, based on 5,000 users in a typical Service Area (which may have up to 100,000 potential customers).
Data Only Model
Customers for this service might include commercial users with specific data communications needs or content providers, such as companies providing services such as video on demand, multimedia teleconferencing with voice, video and graphics, electronic file transfer, and long distance learning. Requirements in this model would normally be for very high bandwidth allocations. For this model, Gridline anticipates entering into a contract with an electric utility company where, as described above, Gridline would be responsible for system design delivery of the required equipment and technical support for the utility or directly for the benefit of customers.
The Wholesale model will provide last-mile broadband infrastructure and solution to Competitive Local Exchange Carriers (CLECs), ISPs, and Cable Modem Operators. CLECs have traditionally competed directly with Incumbent Local Exchange Carriers (ILECs), like GTE, SBC, ALLNET, BellSouth, etc. since the passage of the Telecommunications Act of 1996. That Act opened up access to the ILECs Unbundled Network Elements (UNEs), notably its local loops, which connects ILECs switches to its customers.
“Data CLECs” are now aggressively providing xDSL services to small and medium enterprises (SMEs); however, there are technical limitations associated with the deployment of DSL thereby frustrating their growth. Additional competition from other Internet broadband local access providers, and the delay tactics from ILECs with developing new markets have further added to their frustration. These data CLECs could save money from new infrastructure build-outs, by simply allowing the electricity network to solve their limitations with DSL technology, provide “Last-mile solution”, and less reliance on ILECs for the development of new copper or fiber optic local loop.
Our Customers in this model are CLECs, ISPs, Cable Modem Operators, and of course, the utilities whose ubiquitous electricity network is providing the grid for the broadband access transport to the homes and offices, through their wall sockets. CLECs could see their revenues increase dramatically by embracing Gridline’s technology. Utilities in this case could access a new revenue base, while ISPs and CLECs increase their customer base, with new additional value added services options. Gridline will provide the technology, services, and the applications with our partners to help our customers deliver to their end users.
Full ISP Model
In the full ISP model, Gridline provides technology, custom system design and training, and takes responsibility for certain system maintenance obligations in connection with delivery of general purpose broadband Internet service for end users. We will also work with our strategic and alliance partners to deliver a triple play of services (video on demand, VoIP, and high speed internet) where appropriate. Gridline’s customer may be an electric utility company, CLEC, ISP or Cable Modem Operator that will be primarily responsible for handling end user accounts.
Gridline has entered into a joint co-operative agreement with our development partner to further develop to and for specific application requirements. The Company believes that its Broadband technology has both time to market and cost advantages. This belief is due to the fact that:
- Our agreement with the development partner to develop for early completion, a commercial product that will be available for testing specific to our requirements
- Pilot project for the commercial “bundled product” will be tested on 5,000 users
- Pricing of our equipment will be in line with all other competitive broadband products such as DSL or cable modem
Moreover, the Company anticipates that our bandwidth will be larger, compared to conventional broadband access technology; in order to accommodate potentially more robust value added services.