Economic and Financial Considerations for Deploying Critical Communications Systems

This chapter provides an overview of economic and financial considerations for deploying a critical communications system, including general cost and financing related components and the alternative financing forms. It focuses on the public safety networks used by public safety agencies, which could be local, regional, or nationwide. Deploying a public safety network requires substantial financial investment. Financing a nationwide public safety network must address the initial investment mostly involving Capital Expenditures (CAPEX) and perhaps, more importantly, the ongoing Operational Expenditures (OPEX). The chapter provides a brief discussion on three popular financing alternatives: bond financing, lease financing, and financing via sharing the network. There are several mathematical methods to evaluate the economics of a given project. The chapter also provides a comparison of the methods, which need to be carefully evaluated and integrated as much as possible to maximize the benefits and minimize the cost of the proposed project.