New Cell Phone Carriers May Arrive Sooner Than Expected

In its study "Champagne Tastes: Beer Budgets," SeaBoard Group, a Montreal-based telecommunications consultancy, said new cell phone companies can expect to spend about $500 million to build a cell phone network that will service 60% of the population in the country's 15 biggest markets-much less than the range of $630 million and $1.2 billion given by 12 other analysts.  Because of the lower cost projection, SeaBoard predicts that new carriers could be up and running by next summer, rather than in the twelve to eighteen months estimated by other analysts. 

SeaBoard says the primary mistake in other reports was the assumption that new carriers would need to build new cell phone towers, when in fact they will be able to instead locate their transmitters on building rooftops or on towers owned by existing carriers.  However, some analysts say SeaBoard's estimates are too aggressive regarding the transmission towers, since rooftop access negotiations can be quite lengthy.