BART Wi-Fi plan hits funding skid
By: Mike Aldax
October 31, 2008
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| Surfing the Web at high speed: According to Wi-Fi Rail Inc., the connection it would make available on BART trains is up to 10 times faster than regular DSL. (Cindy Chew/The Examiner) |
SAN FRANCISCO — The future of wireless access on BART trains is unclear after the startup company promising to foot the bill said it doesn’t have the $20 million needed to install the technology.
Sacramento-based Wi-Fi Rail Inc. said Thursday fundraising has been delayed because BART has been slow to sign a contract.
“People won’t loan risk capital until you have a contract,” said Michael Cromar, the company’s executive vice president.
Last summer, riders were told that once a deal was struck between the transit agency and Wi-Fi Rail, wireless access would be available systemwide within two years, including in stations and the Transbay Tube. The $20 million project would be paid for through subscriptions and advertising, the company said.
In May, the deal looked well on its way after BART directors agreed to write up a contract. Five months have passed, however, and progress appears grim. Because of the recent credit crunch, even if a deal was signed today, finding financing could take months, which means further delays, Cromar said.
“The financial market will complicate issues,” he said.
BART’s main negotiator on the deal was away until Monday, said spokesman Linton Johnson, who added he did not know the terms of the contract and was unaware Wi-Fi Rail had no money.
“In general with these types of deals, we don’t let anyone install a system until they can demonstrate that they are financially able to support the installation and the ongoing maintenance of the system,” Johnson said.
The project has attracted interest from financiers, Cromar said, but “everyone wants to see the BART contract first.” He said the company, which has already spent $1.2 million in investor money testing wireless service at downtown San Francisco stations and along a short stretch of Hayward track, remains intent on providing the service.
“We’ve pretty much completed our test, things are looking better than expected,” he said. “We’re hoping we will have a deal within weeks.”
Some BART customers are looking forward to wireless access.
“I think it would be good, checking e-mail and being able to remote back to the office,” said Ken Tan, 34, who works at a downtown San Francisco law office. “You can get a lot of work done on the way to the airport, too.”
The connection, according to Wi-Fi Rail, is up to 10 times faster than regular DSL and about 80 times that of dial-up speed. As part of construction, the service would travel into tunnels through a special wiring called “leaky coax,” much of which many of the tunnels already have in place. Also, pole-mounted radio and antennas would line the tracks and wireless access receivers would be mounted atop and within the train cars, according to the company.
Wi-Fi unplugged
Facts about BART’s plan:
4 Downtown San Francisco stations plugged in during test phase
13,000 Riders registered during test phase
62,000 Times users have logged on to the service in the last year and a half
2 Years to install Wi-Fi systemwide
65 mph The speed trains can go without disrupting wireless service
10 Times faster than regular DSL connection
80 Times faster than dial-up connection
Source: Wi-Fi Rail Inc.
My story
“No, [I wouldn’t use the Wi-Fi on BART]. I think people need to put their tools down and take some breaks from their work.” - Mark Fisher, 49, San Francisco
