Request for Information - Response Date: May 2, 2008. The U.S. Department of Transportation (U.S. DOT) Research and Innovative Technology Administration (RITA) is requesting information concerning potential business models for achieving the Vehicle Infrastructure Integration (VII) vision. The VII vision is predicated on the existence of ubiquitous, vehicle-to-infrastructure and vehicle-to-vehicle data communication capabilities, which will enable public and private user services to improve roadway safety and, also, enhance mobility, traffic operations, relieve congestion, lessen the environmental impacts of transportation, promote energy conservation, enable electronic payment of transportation-related fares, tolls, and parking fees, as well as allow for user access to the Internet from motor vehicles. Background information on VII is available at the U.S. DOT website, www.its.dot.gov/vii. To date, the VII deployment concept has evolved based on a business model whereby the U.S. DOT would finance and contract for the ongoing operation and maintenance of a nationwide wireless data communications network based on Dedicated Short Range Communications (DSRC) technology, operating within a 75MHz band of radio spectrum at 5.9GHz established by the Federal Communications Commission with the stipulation that safety-related uses have priority over other applications. In addition it has been assumed that DSRC roadside capabilities would be made operational at 150,000 to 250,000 locations throughout the U.S. in order to provide coverage sufficient to motivate motor vehicle manufacturers to produce DSRC-equipped vehicles. In addition, it has been assumed that the U.S. DOT would be able to acquire the requisite authority to deploy, operate, and maintain a national communications network. To date, revenue sources have not been determined to fully offset the cost of deployment, operations and maintenance of the intended communications capabilities, or the anticipated VII applications. Given limitations on transportation funding, increasing infrastructure construction and rehabilitation needs, along with rising construction costs, the Federal Government seeks information on alternative business models to meet the public sector technical and policy requirements, and also offer opportunities to the private sector for both delivering, operating and maintaining VII infrastructure, as well as creating services that generate economic growth. Information is sought on all aspects of potential business models for delivering the safety, mobility, and traveler convenience benefits sought through VII, particularly strategies that would allow for the accelerated delivery of benefits. The goal of this RFI is to collect sufficient information to frame options for alternative business models, which can serve as a basis for possible redirection of VII program priorities and strategies. In brief: are there ways to enhance the successful development of the VII concept? Information provided in response to this RFI will be used to:1. Reconsider the scope, scale, timing, and associated deployment strategy for VII infrastructure, particularly with respect to DSRC, and the extent to which VII benefits might be realized through the use of alternative wireless communications technologies, recognizing that these may not be able to satisfy the requirements of many safety critical applications. We recognize that different business models might be best suited to each alternative wireless communications technology.2. Explore opportunities for expanded, innovative partnerships, within the private sector, the public sector, or a combination, that more fully involve the consumer electronics and communications industries, in addition to the motor vehicle industry.3. Reconsider roles and responsibilities for the Federal Government, State and local governments, and the private sector. 4. Quantify VII-enabled market opportunities and potential revenue streams that may provide a basis for private or public financing of initial investment and ongoing operations and maintenance costs. 5. Reconsider the suitability of Federal investment versus State or private sector investment for various aspects of the VII concept, along with the related ability to finance such investment from existing or new revenue sources.6. Assess the extent to which the private sector can structure market strategies that would generate sufficient revenues to warrant substantial investment in VII infrastructure deployment, operations, and maintenance.7. Frame options for (an) appropriate business model(s) going forward and facilitate ongoing national dialogue among VII stakeholders. As a result, the Federal Government invites input generally related to the foregoing purposes and detailed information regarding the following: Market Opportunities and Constraintsa) How are strategies for VII infrastructure influenced by its dependence on the interaction among many networks, and by issues including: compatibility and standards; the presence of externalities; the effects of lock-in to a particular architecture; and the impact of scale economies (information privacy)? How are these opportunities or constraints to businesses?b) What market strategies would feasibly result in a nationwide VII system comprising an information infrastructure for traffic management, including roadside and vehicle sensors and associated communications hardware, along with an associated logical network to support control and decision-making at many levels.c) To the extent a highly secure, low latency, broadband communications capability would be necessary for safety-critical applications, what options exist for providing this capability? What disadvantage exists if other applications are deployed based on other communications capabilities? Is the initial vision of a unified wireless communications vehicle to infrastructure interface (hyphenate previous phrase?) for all applications valid? If so, what strategies exist to allow applications to migrate to a unified condition at some future point, recognizing that this may entail a multi-technology approach? d) How will the evolution of the VII infrastructure enable the market for VII enabled goods and services? How will it constrain the market for VII enabled goods and services? e) What do you foresee as the necessary rate of adoption for particular goods or services? How will this be impacted by the build-out of VII infrastructure? f) To what extent will products and services be deployable and cost-effective over a time-phased incremental deployment? What products and services depend upon wide-spread coverage, and how?g) Describe major products and/or services that will be enabled once sufficient VII deployment has been achieved. h) Describe the dependencies involved in the market for goods and services based on VII. In particular, what components of VII are core to delivery of specific products or services?Organizational Decision Makingi) What will encourage participation or hasten participation in a VII-based market? j) Discuss the technical and business risks and describe what actions, public or private, would mitigate those risks. k) In particular, what liability issues are of greatest concern?Outlook for Growthl) Is there sufficient scale in local markets to warrant entry or is ubiquitous national coverage essential to certain application opportunities? m) How do product and service sectors or public entities anticipate creating value or being able to capture value in a VII market environment?n) To support a value chain analysis, describe the value proposition for segments of the market. o) Where are the greatest near-term market opportunities? For example, are these in the extension of existing applications, such as tolling? Technology Requirementsp) Are there alternatives to DSRC which deliver the needed security and data latency requirements, but at lower costs?q) In general, are there technologies that are ready for deployment that offer opportunities for development of new user services?Governance and the Government?s Roler) What is the role for the private sector in operation of the system? Discuss the relationships between efficiency and privacy, and outline the various roles and responsibilities that result. In responding to this RFI and the questions above, please also identify your role as a stakeholder: public agency, private company, and provide a brief description of your organization in terms of size, customer base, revenues, or other appropriate metrics. In addition, please briefly outline your concept for VII deployment to provide the necessary context for considering your response. Information provided in response to this RFI will not be considered confidential unless clearly marked as such. Responses will be made available to other U.S. DOT agencies for the purposes of collaborative VII program planning. Responses will be treated as information only. This request for information is issued for the purpose of obtaining information and data that will be used to help identify and assess alternative business models for VII-related infrastructure. Appropriately marked proprietary information, submitted as a result of this RFI, will be received and protected accordingly by the U.S. Government. Interested parties are requested to submit written responses to this RFI by May 2, 2008. It is highly encouraged that all information submitted be provided electronically, preferably in either Microsoft Word format or Portable Document Format (PDF) to the following e-mail address:
[email protected]. The mailing address for responses is VII Business Model Response, RTV-1, John A. Volpe National Transportation Systems Center, U.S. Department of Transportation, Research and Innovative Technology Administration, 55 Broadway, Kendall Square, Cambridge, Massachusetts, 02142. In addition to the responses received under this RFI, respondents may be asked to provide additional written information for clarification or to provide more detail via telephone or face-to-face discussions. This synopsis is for information and planning purposes only, and is not to be construed as a commitment by the Government to pay for information solicited or received.