Every stadium network is measured by what it costs to build. Few are measured by what they may be worth to the owner over time.

That is the idea behind the Converged Network Effect: the possibility that a converged network is not only more efficient to build, but also creates greater economic value for the owner than traditional network architecture. The effect should appear as more venue systems move onto a unified foundation and become easier to operate together.

The inspiration comes from Metcalfe's Law. In the early Ethernet era, Robert Metcalfe helped corporate technology buyers see network value differently. He posited that a network's value was not limited to the cost of the hardware. It could grow as more compatible devices joined and created more possible connections.

The shorthand for Metcalfe's Law is often depicted as:

Network Value ≈ n²

Stadium networks do not follow Metcalfe's Law literally. But the lesson is useful. Compatibility and scale can change the economics of a network.

We believe a stadium network's job is to create economic value for its owner by lowering operating overhead and helping the building increase revenue. Based on our experience designing and operating converged venue networks, that value appears more likely when technology systems are unified.

This model is offered as a tool to help owners think about that value:

NV = (S × U) / F

• NV = Network Value
• S = Systems
• U = Usability
• F = Fragmentation

If the model is useful, Network Value rises as more venue technology systems become easier to operate together and falls as fragmentation makes those systems harder to coordinate.

That is the Converged Network Effect.

The NV = (S × U) / F model highlights key variables that will shape stadium economic performance for decades. It could be especially useful in the pre-construction phase. Infrastructure decisions made at this stage tend to determine the lifetime economic potential of a stadium.