Pipeline Publishing, Volume 5, Issue 3
This Month's Issue:
Unlocking the Power of Web 2.0
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Telecoms Miss Out on Red Light Revenue

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spokespeople don't actually know the details. Redflex, on the other hand, probably would prefer not to comment because it likely knows the major telecoms could, in theory, replicate its service at a lower cost.

The story – and the cash flow – doesn't end here. Following the success of the red light camera program, Chicago's Department of Streets and Sanitation awarded a three year, $7 million contract, announced on April 22, to Affiliated Computer Services, Inc. (NYSE: ACS) to install and maintain 100 camera systems on the city's street sweepers. The department claims that the program is intended to reduce the number of vehicles illegally parked on streets scheduled for cleaning. A pilot program has been conducted already that proved the effectiveness of equipping street sweeping vehicles with rugged cameras. These capture images of illegally parked autos and use ACS' Mobile License Plate Recognition technology to capture zoomed-in images of their tags.

As the monstrous street sweepers roll down a given thoroughfare, the automated system will shoot photos of violating vehicles and transmit the data wirelessly for image verification. Like the red light camera systems, the street sweeping camera system will integrate with the Department of Revenue's systems to mail violation notices and track and collect payments. In addition to its camera and recognition systems, which ACS provides to government agencies in more than thirty countries, the company will provide training for city employees as part of the contract. Interestingly enough, Kevin Lightfoot, vice president of corporate communications for ACS, promised to identify an appropriate source to discuss how the technology is implemented and which telecoms will supply wireless connectivity - and was not heard from again. It seems that also like Redflex, ACS understands that it is making hay off of telecoms' failure to deliver this kind of application and would prefer not to poke the sleeping bear.

Ultimately, what this amounts to for the telecom industry is evidence that a lack of innovation and failure to deliver on lip service results in millions, perhaps billions, in lost opportunities



Ultimately, what this amounts to for the telecom industry is evidence that a lack of innovation and failure to deliver on lip service results in millions, perhaps billions, in lost opportunities. Governments need to find ways to raise money, avoid raising taxes, and spin new programs as public safety efforts. They spend millions on their own IT staff, and pay vendors premium prices not just for technology, but also for what is likely a mark-up on telecom connectivity. Companies like AT&T and Verizon, as well as their wireless counterparts, should be winning these deals and blowing companies like ACS and Redflex out of the water. But they aren't.

Instead, folks in telecom are spending plenty of time talking about innovating new applications while fighting a price war with cable and satellite companies to deliver TV service or all-you-can-eat wireless. Google makes billions on telecom's back thanks to net-neutrality protection. But companies like Redflex and ACS are simply out-thinking and outmaneuvering major telecoms in their own backyard. Folks, it is time to stop yakking and to start paying attention to these missed opportunities. As we try to race forward, however, let's all remember to stop at the red lights – especially in Chicago.



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