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earlier as a money savings. Thus our current yearly cost for CDPD is $20,394 a year. We get <br />back $5,700 a year by leasing space out on our switch to other departments. <br /> <br />The change away form CDPD is a national program, involving all carriers and all users. <br />Europe discontinued CDPD over five years ago and the USA is just now getting ready to <br />disband the service and migrate to the new technology. <br /> <br />CDPD connects between devices at 19.2k. A home computer connects via a phone line <br />between 26K and 56K. Thus CDPD was way below the norm for connectivity speed. <br />Although this speed worked for our data application, it did not work for those who need <br />Internet speed or the ability to transmit photos or larger data packets. The market drives the <br />speed, thus a decision was made to upgrade the nation to either CDMA or GSM/GPRS. <br />These devices connect at a speed of 64K, over three times as fast as CDPD. <br /> <br />In the early part of 2004, all CDPD networks will be shutting down and users will have to <br />migrate to one of the new networks. The good news is that now AT&T is not the sole <br />vendor and pricing is getting very competitive between the major companies including <br />Verizon, Sprint and many others. <br /> <br />The change will require two things from us. First, we have to fmd a provider and establish <br />monthly pricing and pricing for the frame relay. Second, we have to locate a new modem for <br />each device and install those in our vehicles. <br /> <br />AT&T has already approached us with a deal. Migrate to their system and they will provide <br />at no cost to us, modems for each car. That is a savings of $11,000. I have been told though <br />that our yearly costs will remain about the same. This deal seems too good to be true and a <br />definite attempt at keeping our business. <br /> <br />Other vendors have indicated that although their monthly per car charge might be as high as <br />$70.00, they were not anticipating any frame charges. That is a potential savings of $20,000 <br />which over time would be a tremendous annual savings to our department. We would most <br />likely have to purchase modems, but the overall savings is well worth that start up cost. <br /> <br />I must caution us though by stating that these initial offers from the non-AT&T vendors are <br />very sketchy and prone to change. They are very new to this market and have not completed <br />an install yet, so their pricing is neither firm nor informed. I do suspect though that they will <br />be giving AT&T a run for their money - a potential reason that AT&T is trying to lock in <br />contracts now. <br /> <br />I am in contact with the major providers and will be formalizing numbers over the next few <br />weeks. As I do so I will continue to provide you with updated information. <br /> <br />Please contact me if you have any questions concerning this change. <br /> <br />JAB <br /> <br /> <br />