nice contract news, page-8

re: nice huge contract news All teams are busy and are on contract and with more than 10 potential signings in the next 6 months all is well in the traffic side of the business. As far as Transol goes both there contracts and the technology they had are poor so there is nothing there for RDF to take on other than the potential re-negotiation of contracts at realistic industry prices. That is the problem with Nestor as well. They are underbidding to get the business but you need massive cash reserves to maintain this before economies of scale can kick in and become profitable...

The Comms announcement is a nice to have but it is not where the growth of the business is but it does underpin the results for the next two years as RDF tries to maintain a 17 per month install rate and by the end of 2007 - 30* 17 = 510 from june 30th this year to get the 1000th install.

Someone on here commented about speed. I was certainly under the impression that this would multiply revenues BUT many cities have cottoned onto this and the revenue is only about double on the tenders i have seen. So a RLC still averages at $5KUSD per month and double that for the combo version. As an interesting point - none of the brokers have factored speed into the equation at all and this is where alot of extra revenue will come over the next year and onwards.

The Tennessee contracts at Knoxville, Chattanooga are combo deals and not entirely sure about Nashville and Memphis. So Tennessee is looking like the new Ohio... Will be interesting to see what the final result in Ohio is but i do suspect it will be at worst a grandfathering clause and at best totally thrown out.... Time will tell and we should have a result on that one by December 31st.