First of all, Transit Wireless, underbidding a consortium led by AT&T, will pay New York City Transit $46.8 million for the rights to do the project. And that’s not even counting the cost to build the network, which has been estimated at between $150 and $200 million. So how is Transit going to recoup those losses? By signing up cell phone carriers, of course. Cell carriers would have to pay Transit Wireless for the right to have their service available in subway stops. At first glance, it seems totally worth it for cell companies to do this. However, the service will not be available in the subway cars themselves; it is limited to the stations. How much time does someone spend in a subway station on average? Unless it’s a late-evening affair, probably not that long. For instance, between the hours of 6 a.m. and 9 p.m., we haven’t waited more than five minutes for an A/C/E train. So is it worth it for cell carriers to pay Transit Wireless so their users can enjoy five more minutes of service? That’s going to be an issue that will be reviewed heavily by each individual carrier. However, if even one major carrier doesn’t sign up — and that’s a red flag for AT&T, who lost the bid to create the network — it might not work out at all. The service will start at the 23rd Street and 14th Street stops on the A/C/E line, the 14th Street stop on the 1/2/3 line, and the 14th Street on the F/V line. That will be two years out, and if successful, all 227 should be wired within four years. [Second Ave Sagas]]]>
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