Going Wireless in Miami

Fortunately new 4G cellular technologies such as LTE are creating bigger pipes for demanding applications and heavy traffic. “LTE is already set to become the wireless broadband standard for mission-critical public safety applications, so it should be sufficiently capable for mass transit,” confirmed Alan Tilles, an attorney with Shulman, Rogers, Gandal, Pordy & Ecker of Potomac MD. Clearly broadband implementation such as that described by CCJPA does not come cheap. But as Allison points out, a transit agency’s business model must show such a service is sustainable. While others have tried charging for Wi-Fi access, or hoped that advertising would foot the bill (both flawed approaches according to Allison), CCJPA has opted for the Induced Ticket Revenue model – in short, Wi-Fi must pull in more paying passengers. “A 1% increase in ticket sales should break even on CCJPA’s costs and 2% would put us in the black,” says Allison; a model born out by T-Systems in Germany and the Amtrak Acela service in the Northeastern United States. If correct, then this is a formulaic rule-of-thumb other transit authorities could use to gauge how much budget to apportion to passenger Wi-Fi initiatives.

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Jim Baker is CEO at Xentrans, Inc., a wireless project management consultancy based in San Francisco and London. A C-level wireless industry veteran, Baker has been involved in many deployments of wireless technologies on passenger transportation worldwide and is a recognized industry expert on Wi-Fi, 3G and 4G convergence. He is Chair of the Technology Committee at the Joint Council on Transit Wireless Communications that is developing a strategic plan for implementation of wireless technologies in mass transit. Contact Baker via LinkedIn or follow him on Twitter.