Race Is on for Cellular Providers in Plan for Service in New York Subway
By SEWELL CHAN
Published: August 25, 2005
The decision to introduce cellphone service in the city's underground subway stations touched off a flurry of interest in the telecommunications industry yesterday, as the Metropolitan Transportation Authority began soliciting bids for a 10-year contract that will involve immense technical complexity and probably be worth $50 million to $100 million.
Representatives of the country's four largest wireless companies - Cingular Wireless, Verizon Wireless, Sprint Nextel and T-Mobile - all said yesterday that they were considering submitting proposals to build the wireless voice and data network, which will cover 277 of the city's 468 stations. Companies that make wireless hardware - cables, radios and antennas - also expressed interest. Bids are due on Oct. 12.
A 35-page request for proposals, which was released on Tuesday, the same day the authority announced a $212 million contract with the Lockheed Martin Corporation to create an electronic surveillance system, outlines the shape of the proposed wireless network, but many financial and operational details have not been worked out.
The authority wants a company or a consortium to design, build, operate and maintain the system - at no cost to the authority. In return, the winning bidder would have an exclusive 10-year license, with two optional 5-year extensions, and the right to sell access to the network to "multiple commercial service providers."
The proposal specifies that the winning bidder must allow other wireless companies access to the network. For example, if Verizon Wireless - the dominant carrier in the Northeast - prevails, it must let customers of rival companies place and receive calls in the subways. Even so, the winner of the contract could have a significant competitive advantage, because it could compel its rivals' customers to pay roaming charges - payments for calls outside a carrier's network....
http://www.nytimes.com/2005/08/25/nyregion/25phones.html