Cost of implementing a nationwide VII system (2008 dollars, nominal)
Nationwide, United States
In this 2008 Draft Report created for the Intelligent Transportation Systems Joint Program Office (ITS JPO), a high-level, conservative Benefit-Cost Analysis (BCA) of the Vehicle-Infrastructure Integration (VII) Initiative was conducted based on comments received on a previous version of the report and from members of the VII Working Group, as well as with updated cost and assumption information from the ITS JPO. This analysis was conducted at a societal level and not for specific "agencies" that may bear much of the cost of this program's implementation, but not see many direct benefits.
System Costs
Cost calculations for this study were divided between development, deployment & installation, and operations & management (which includes lifecycle and damage replacement) costs for various components of the VII system.
Roadside Equipment (RSE): The cost of RSE varies based on specific components, location, and network connection type. Costs ranged from between $9,600 for an Urban Highway/Freeway/Interstate RSE with Wireline Comm. to $37,100 for a Rural Interstate RSE without a powergrid connection. The report estimates at least 252,000 RSEs being deployed over the initial five-year deployment period at a cost of $9.3 billion over the 40-year period. These costs and counts do not include any "Urban Arterial, Non-signal" RSEs which could also potentially be deployed.
Onboard Equipment (OBE): The report estimates an initial cost of $50 per new car to install OBE as a standard feature. The report assumes a replacement/repair cost of $100 per unit. Including maintenance and repair costs over the project horizon, the report estimates that $12.4 billion will be spent on OBE.
Network Backhaul: The current network is insufficient to meet the message/data transfer of OBE to OBE, RSE to OBE, and OBE to RSE needed for a fully implemented VII system. As a result, the network must be backhauled at a cost of $3.7 billion over the project horizon.
Applications: Application development for the OBE is predicted to cost $10 million for each of the 8 applications described in the report (Signal Violation Warning, Stop Sign Violation Warning, Curve Speed Warning, Electronic Break Lights, Ramp Metering, Traffic Signal Timing, Winter Maintenance, and Traveler Information). Additional maintenance and upgrades to the applications over the horizon will likely cost an additional $800 million over the project horizon.
Program & Governance: Service Delivery Nodes (SDNs) and Enterprise Network Operations Centers (ENOCs): The need for the construction of 502 SDNs (one for each of the 452 urbanized areas and one for each state) and 2 ENOCs (one primary, one backup) would cost $115.9 million to initially develop. Deployment and installation costs are estimated at $252 million. Lastly, O&M and staffing costs would be $62.8 million per year.
Based on the assumptions made about deployment schedules, the project horizon, and the discount rate, the overall cost of developing, deploying, operating and maintaining a national VII network has a present value of $27.3 billion (2008 dollars) over the 40-year project horizon. These costs would likely be incurred at the federal and state level, with the exception of OBE units, which would be the responsibility of the car buyers.
TABLE 4.12: Total Yearly Outlay by Major Cost Area in Future Value, Nominal Dollars (in Millions)
![]() |
![]() 2010
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![]() 2011
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![]() 2012
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![]() 2013
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![]() 2014
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![]() 2015
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![]() 2016
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![]() ...
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![]() 2019
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![]() ...
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![]() 2030
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![]() ...
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![]() 2040
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![]() ...
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![]() 2050
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![]() RSE |
![]() $6.2 |
![]() $1,078.8 |
![]() $1,186.7 |
![]() $1,294.6 |
![]() $1,402.5 |
![]() $1,510.4 |
![]() $539.4 |
![]() -
|
![]() $667.2 |
![]() -
|
![]() $669.4 |
![]() -
|
![]() $664.1 |
![]() -
|
![]() $647.9 |
![]() OBE |
![]() $0.0 |
![]() $0.0 |
![]() $228.9 |
![]() $470.3 |
![]() $722.3 |
![]() $981.9 |
![]() $1,017.8 |
![]() -
|
![]() $1,151.3 |
![]() -
|
![]() $1,545.3 |
![]() -
|
![]() $1,764.7 |
![]() -
|
![]() $1,937.2 |
![]() Net. |
![]() $0.0 |
![]() $119.1 |
![]() $192.3 |
![]() $265.5 |
![]() $338.7 |
![]() $411.9 |
![]() $366.1 |
![]() -
|
![]() $366.1 |
![]() -
|
![]() $366.1 |
![]() -
|
![]() $366.1 |
![]() -
|
![]() $366.1 |
![]() Apps |
![]() $380.7 |
![]() $65.0 |
![]() $65.0 |
![]() $65.0 |
![]() $65.0 |
![]() $65.0 |
![]() $65.0 |
![]() -
|
![]() $65.0 |
![]() -
|
![]() $65.0 |
![]() -
|
![]() $65.0 |
![]() -
|
![]() $65.0 |
![]() Prog & Gov |
![]() $93.1 |
![]() $20.7 |
![]() $22.5 |
![]() $5.3 |
![]() $10.6 |
![]() $17.7 |
![]() $24.7 |
![]() -
|
![]() $45.3 |
![]() -
|
![]() $102.3 |
![]() -
|
![]() $127.9 |
![]() -
|
![]() $143.0 |
![]() Total |
![]() $480.1 |
![]() $1,283.6 |
![]() $1,695.4 |
![]() $2,100.7 |
![]() $2,539.1 |
![]() $2,986.9 |
![]() $2,012.9 |
![]() -
|
![]() $2,295.0 |
![]() -
|
![]() $2,748.2 |
![]() -
|
![]() $2,987.8 |
![]() -
|
![]() $3,159.3 |
Vehicle-Infrastructure Integration (VII) Initiative: Benefit-Cost Analysis - Version 2.3 (Draft)
Costs for developing, deploying/installing, and operating & maintaining a nationwide VII system are estimated to be $27.3 billion over 40 years.