Seems like we might be seeing Wifi on BART:
The test, which will cost between $1.5 million and $2 million, involves the Embarcadero, Montgomery, Powell and Civic Center stations. Lee said that once the test concludes, he hopes Wi-Fi Rail will be designated as the “lead carrier” to install wireless service throughout the BART system, a project that will take between 18 and 24 months to complete and will cost approximately $55 million.
Once the BART test concludes, which should occur by the end of the year, Wi-Fi Rail plans to charge customers $10 per day, $30 per month or $300 per year for wireless service; corporate rates also are available.
BART says that 175k people could potentially use the service. Let’s be optimistic and say 300k potential customers. They’ll only get a 20% conversion rate at BEST. Which is 60k customers at $30 per month or $1.8M per year in revenue. Assuming this is 100% profit it will take them 30.5 years to earn back their investment.
I don’t think these guys have done the numbers. What VC would invest here?
I’ve got to be missing something.
Seriously. Why does it cost $55M to install wifi? This is crazy.