The Federal Communications Commission (FCC) has approved a $110 million initiative to modernize North America's rail communications systems by 2025, reallocating 900 MHz spectrum to support broadband deployment.
The move is expected to significantly enhance safety, productivity, and operational efficiency across the six major Class I railroads, including: Burlington Northern, CSX, Canadian National, Canadian Pacific, Union Pacific, and Norfolk Southern.
The $110 million investment reflects the railroads' own financial commitment to the transition.
“The railroads now estimate $110 million in total costs for the transition – approximately $41 million will be used to implement the post-transition band plan clearing needed to accommodate the 3 MHz broadband segment,” said the Association of American Railroads (AAR) in comments submitted to the FCC on May 2, 2024.
“AAR has already spent more than $2 million over the past two years on testing and working to adapt the new 802.16t standards to the unique operational requirements of the rail industry,” the AAR said in its comments.
Additionally, the industry has “already spent approximately $26.17 million for development, coordination, and clearing the six legacy paired channels from more than half of the approximately 9,500 locations.”
The shift isn’t unique to North America. Germany's Siemens Mobility recently signed an agreement to revamp the communications system to improve data security and efficiency for Chicago's Metra commuter rail network, Railway Supply reported. The upgrade enhanced system reliability by replacing older infrastructure with advanced broadband technology.
Despite the FCC’s approval, the pace of adoption across the rail industry remains slow. The commission set a tentative September 2025 deadline for completing communications equipment upgrades, though it has yet to confirm if the timeline will be enforced, Federal Newswire reported.
The push to replace legacy systems comes in response to long-standing issues with bandwidth limitations and inefficient communications infrastructure.
Much of the current technology, dating back to the late 20th century, was designed primarily for voice communication and basic data transmission. As rail networks incorporate automated systems and digital monitoring, the constraints of aging equipment become increasingly apparent.
Security concerns are also driving the shift. Older networks are more vulnerable to interference, cyberattacks, and data degradation due to weak encryption and outdated protocols.
In contrast, modern broadband systems incorporate stronger cybersecurity measures, protecting critical rail infrastructure from potential threats, RailTech reported. As rail operators lean more heavily on interconnected systems for scheduling, maintenance, and logistics, safeguarding these networks becomes essential.
Operational risks tied to legacy technology have already been well-documented. A 2018 report by the National Transportation Safety Board (NTSB) linked several derailments and collisions to communication failures.
The adoption of broadband networks is expected to address these gaps by improving the speed and reliability of communications during critical operations.
This spectrum transition is part of broader efforts to bring North America’s rail infrastructure in line with global standards. European and Asian rail networks have already implemented broadband systems to reduce delays and enhance accident prevention measures.
In India, a modernization project equipped major freight corridors with digital communication systems, cutting transit times and reducing incidents along heavily trafficked routes, Tejas Networks reported.
Similarly, Japan’s Shinkansen relies on broadband communication to monitor train speeds and track conditions in real-time, allowing for quick adjustments and safer operations.
Without these upgrades, North America’s railroads may continue to operate with communication systems that are less advanced than those used internationally.
The AAR said that current systems are based on “1980s technology” and that the transition to broadband is necessary to support next-generation safety applications.
The FCC’s reallocation of spectrum provides an opportunity for railroads to enhance safety and efficiency across their networks.
However, the extent to which rail operators embrace these advancements will shape the future of the industry, determining whether they remain competitive in an increasingly digital landscape or face the costs of continued reliance on outdated infrastructure.
