Now that the Metropolitan Transportation Authority is moving forward with plans to roll out wireless connectivity on the New York City subway, Mass Transit took a look at Transit Wireless, LLC, the consortium that got the job. The business model is simple: Transit Wireless covers all construction costs and generates revenues from the mobile carriers who would provide service over the new network. The MTA receives lease revenue (estimated at $45 million over 10 years in the original contract), and customers get wireless coverage. Jim Baker writes:
The wireless endgame is a happier passenger who can now make a call and check Twitter or Facebook on the platform; a happier transit authority who has generated income from a site lease; and a happy wireless operator who is generating recurring revenue from mobile carriers needing to extend their reach underground and advertisers willing to pay to sell insurance, pizza and home loans.
The project is estimated to cost Transit Wireless $250 million. Construction on the first six stations is expected to start next month. Service will be rolled out incrementally, and all 277 stations will have coverage within six years. Link to full story in Mass Transit.
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