China MediaExpress Holdings, Inc. (fka CCME)

[Drexion2004]

I wouldn't assume capex for the wireless rollout personally, at least not anytime soon. While the company did mention this initiative in the past, they also have not been able to justify the extra cost involved. Advertisers say they would like it but do not seem willing to pay extra for the functionality.

One of the reasons the company said they would like to do the upgrade is because it would simplify the update-content process so that someone would not need to enter the bus with a USB to manually upgrade content (Takes 4-5min per bus).

This reason has been pretty much eliminated with the introduction of the SWITOW catalog. An employee needs to enter the bus to replace missing catalogs, etc anyhow... It makes perfect sense for them to start the USB-content upgrade process when they enter the bus, spend a couple of minutes making sure there are enough catalogs, then taking the USB and moving on to the next bus.

Advertising clients already receive CTR research reports (Monthly I believe) as verification of their ads being run...Which is probably why they were not willing to pay extra for wireless functionality.

One real benefit of having wireless functionality is the ability to update the content more quickly than twice a month...But so far advertisers have been more than willing to accept an update cycle of once every 2 weeks.

-Fernando