competition, page-2

kawartha, might be a bit of smoke and mirrors here, reminds me of those marvellous Poltech announcements which were written by the Iraqi Information Minister's brother.This sounds similar to a facility Nestor (a small competitor to RDF in the US) had with the Electronic Data Systems finance arm. That facility was never used.

I could be wrong but it sounds like a lease facility between the city installing the cameras and the lease company, Rentworks. Under the present outsourced business model in the US cities do not really take on any liability as the providor (Redflex, ACS, Nestor, Transol(up to now) pay for the lot, hardware & installation, and recoup their outlay by charging a fee to the city each month, either a fixed monthly fee or a fee calculated on citations issued or citations paid.

However if this Transol facility is what I believe it is it means the city takes on a direct long term liability with a third party. Would be a very hard sell to get a city to swallow an arrangement like that, they'd treat it like a big black snake.

It's common knowledge now that 120 operating approaches is a minimum required for profitability, still a long hard road for Transol.