After reading Funding and Ownership of the Subway Wireless Network, you asked “Why doesn't the MTA just build it itself?”
Public vs. Private: Why the MTA Outsourced Subway Connectivity
2 min read
MTA outsourced to Boldyn to avoid $600 million upfront cost, gain telecom expertise, and shift project risk.
Public vs. Private: Why the MTA Outsourced Subway Connectivity
On paper, the MTA could have done it. The agency owns the tunnels, runs the trains, and manages billions in capital projects. So why hand off subway wireless to a private company?
The short answer: money, expertise, and risk.
Building a wireless network through 418 miles of tunnels isn't like laying track. It's a telecom project requiring fiber optics, antennas, repeaters, and constant carrier coordination. The MTA's engineers know transit, not running a mini-AT&T underground. That's why the agency partnered with Boldyn Networks, which installs the system and leases access to wireless providers.
Then there's cost. The buildout runs around $600 million—money the MTA didn't want to spend while juggling signal upgrades, new trains, and massive debt. Boldyn pays up front and earns it back by charging carriers. To the MTA, that's a win: riders get service without new borrowing or budget cuts.
Politics matters too. Big public tech projects often become headaches when deadlines slip or costs balloon. By outsourcing, the MTA shifts the risk. If the rollout stalls or needs costly upgrades, the blame doesn't land squarely on the agency.
The tradeoff: Boldyn controls the system for decades, collecting revenue and deciding how the network evolves. Critics say that's too much power for a private company running public infrastructure. From the MTA's perspective, outsourcing bought progress without new debt.
Whether that pays off depends on service reliability and partnership transparency once tunnels go online.
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Published October 9, 2025
Mark Okafor is a contributor for Tunnel Vision.
This article is part of the Connectivity series.