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By James F. DeRose
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Extra resources for The Wireless Data Handbook, 4th Edition
Example text
While there may be traffic dependencies, that price level is certainly reached in volume bids. In this example the public price declines with volume to the $550-per-month level. For a private system of this size to compete on price grounds the customer must have on the order of 1000 subscribers in a somewhat constrained geographic area. This Table 2-2 Prorated monthly cost: Private system Cost ($) Item One-time costs 120 months at 10% Recurring costs Hardware maintenance0 Leased lines Rooftop rentals Operationsb a Quantity Monthly Annual Prorated Monthly Cost ($) 10- Year Total 1,750,000 23,126 16 16 500 400 13,000 96,000 76,800 255,000 10% of purchase price.
At the close of 1998 Federal Express is roughly one-quarter of the way through the rollout of their new private system, built by M/A-COM. In 1999 it is entirely possible that FedEx will have more devices installed than all CDPD carriers combined. One early vendor motivation for erecting public data systems was that customers would "grow up" and graduate to the vendor's private infrastructure. There is no known example of such an event. 8 Several other utility companies, including Boston Edison, Florida Power and Light, Illinois Power, Jacksonville Electric, Pacific Gas & Electric, Southwest Gas, and Washington Natural Gas are known BSWD users.
RAM was subsequently renamed BellSouth Wireless Data. BSWD has continued to expand its infrastructure, and create supporting network alternatives, in order to obtain nationwide coverage. In April 1993 a consortium of wireless carriers announced a series of regional systems called CDPD. Differing in only a few technical respects from ARDIS and RAM, and very late to market, CDPD's combined blood loss easily surpassed that of the earlier pioneers. CDPD's subscriber growth has been exceedingly slow.