Yeah, Uh, We’ll Give You Forty Bucks For It*
This should be profitable, right? Or not:
All 277 underground stations in the subway system are to be wired for cellphone use, the Metropolitan Transportation Authority announced yesterday.
But riders may have to talk fast, because the subway tunnels will not be wired, out of consideration for riders who do not want to be stuck in a subway car full of chattering cellphone users.
The company that won the right to wire the stations, Transit Wireless, will pay New York City Transit a minimum of $46.8 million over 10 years, the agency said. The company will also pay the full cost of building the wireless network in the underground stations, estimated at $150 million to $200 million.
Under the agreement, cellphone providers would pay the company a fee to carry their signals on the network.
. . .
Transit Wireless is a joint venture involving Nab Construction, Q-Wireless, Dianet Communications and Transit Technologies. Nab Construction and Transit Technologies have done other large-scale construction projects in the subway system, and Dianet has been involved in designing and installing cellphone antenna systems in buildings and airports. Q-Wireless makes software for wireless systems.
Transit officials said they chose Transit Wireless in part because it offered to pay more to the authority than the others. One bidder, American Tower, offered a total 10-year payment of $6.2 million. A consortium of the major cellphone providers, including Verizon Wireless and Sprint Nextel, offered a total payment over 10 years of just $40, according to a summary of the deal that will be provided to the authority’s board members. (A transit official said the figure was not a typo.)
Transit Wireless initially made an offer of $34.4 million, but it increased the offer during negotiations.
*Hey — four dollars a year could feed one of Sally Struthers’ peeps though, yes?
Posted: September 20th, 2007 | Filed under: Someone Way Smarter Than Us Probably Already Worked This One Out