The head of the American Association of Railroads (AAR) told a U.S. House panel this week that the railroads are on schedule to comply with a Federal Communications Commission (FCC)-approved, $110 million initiative to modernize North America's rail communications systems by April 2026, reallocating to a new block of the 900 MHz spectrum given to them by the FCC to support broadband deployment.
"Yes, we will comply," Ian Jefferies, president and CEO of AAR, told U.S. Rep. Troy Nehls (R-TX-22, during a Thursday hearing of the U.S. House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials. "I've talked to our our internal experts and we're on schedule to comply and I’d be happy to bring in those experts to to sit down with you and your team and (discuss) in more detail. But that process is in place and we're moving forward."
The FCC initiative 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.
In November 2024, AAR did not respond to Federal Newswire requests for comment on the railroads' progress on complying with the FCC-mandated transition.
During Thursday's hearing, Jefferies said his industry will "commit to properly inform" the FCC and Nehls' committee if there are any issues with meeting the FCC's stated September 2025 deadline for vacating their legacy 900 MHz spectrum.
Following is the full exchange between Nehls and Jefferies:
Rep. Nehls: Mr. Jefferies, the FCC’s allocation for the 900 megahertz spectrum is a valuable opportunity for the railroads to enhance rail safety, reliability and operational efficiency. Will the Class 1 railroads commit to comply with the FCC order on spectrum by September of this year?
Jefferies: Yes, we will comply. I've talked to our our internal experts and we're on schedule to comply and I’d be happy to bring in those experts to to sit down with you and your team and (discuss) in more detail. But that process is in place and we're moving forward.
Rep. Nehls: And will you commit to promptly inform the FCC and members of this committee if there are any issues with compliance?
Jefferies: Absolutely.
Rep. Nehls: Once the railroads are done moving to the 'A Block' within the 900 MHz band can you share what the railroad industry's plans are to further develop that spectrum to show a continued commitment to safety and what the time frame the industry will need to achieve that?
Jefferies: Certainly. That's what we're developing right now and when you when you look at Spectrum use and what we've been able to build out along our network through our PTC Network — we’ve got a 54,000 mile 5G Network now — moving on to tighter bands of spectrum that'll open up more capacity and allow us to really take kind of the the wireless backbone to to new heights.
Despite AAR's lack of comments to Federal Newswire on the railroads' progress on the transition, the industry previously said it is financially committed to comply with the FCC order.
“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 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.”
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.
