Network Rail in exclusive discussions with consortium on deal to upgrade telecoms infrastructure: project reach release

Tuesday 24 Jan 2023

Network Rail in exclusive discussions with consortium on deal to upgrade telecoms infrastructure

Region & Route:
National

Network Rail is in exclusive discussions with a private sector consortium to enter a long-term partnership to upgrade its ageing telecoms infrastructure and improve connectivity across the UK in a deal that will result in significant savings for the taxpayer. 

The project will accelerate the necessary trackside fibre and mast upgrades to future-proof the telecoms network and:

  • enhance wireless connectivity on trains and in stations for passengers
  • improve data-driven train performance and safety systems
  • align with the Government’s levelling up agenda and support current objectives to improve connectivity across Britain

In a project launched two years ago, Network Rail has now entered exclusive discussions with a private sector consortium to upgrade the railway’s ageing telecoms infrastructure. The parties expect to reach an agreement by mid-2023.

The consortium is a partnership between two private sector businesses – both market leaders in the development of mobile tower and fibre assets. In return for granting rights to commercialise the network, the third-party funding will help accelerate the necessary upgrades to Network Rail’s ageing telecoms infrastructure. The proposed transaction will help future-proof Network Rail’s telecoms infrastructure by providing new fibre optic cable and mobile towers across Network Rail’s estate.

This connectivity will enable the shift towards an efficient, data-driven railway, providing all-important improvements to train performance and safety. It will bring other benefits for passengers, such as better wireless connectivity on trains and in stations. It also aligns with the government’s plans to accelerate the provision of high-quality broadband to harder-to-reach rural communities and supports levelling up initiatives.

Harriet Hepburn, Network Rail’s Corporate Finance Director, said:

“This is an exciting opportunity for Network Rail, and we are excited at the prospect of entering this long-term partnership. The proposal provides a comprehensive package that will deliver real benefits for passengers and the railway, and also significant savings for the UK tax-payer.”

ENDS

 

 

Notes to Editors

Lazard & Co., Limited is acting as the exclusive financial advisor to Network Rail on the transaction.

Telecoms upgrade

Network Rail Telecom (NRT) manage the voice, data and radio networks that underpin the smooth running of rail services across Great Britain.  The c.16,000Km of trackside fibre optic cable supports a wider range of services including signalling for trains, station information and security systems, train and trackside voice and data comms, and corporate networks for depots and offices.  The existing fibre cable is near the end of useful life, or is at full capacity, and requires upgrading imminently.

Network Rail’s train communications system, the GSM-R network, is based on 2G mobile technology and, in line with Railways across Europe, this will need to be upgraded to a 5G-based FRMCS radio solution within the next decade.  The new FRMCS solution will support high data volumes and enable expanded use cases including the next generation of signalling services. New mast infrastructure will be required to support the delivery of these services.

Benefits

The proposed network upgrade will result in benefits for rail passengers, frontline rail workers and those living in rural areas including:

  • Train performance: Enhancing telecoms infrastructure will enable an improved railway – trains, signalling and level crossings will be better connected than before - ultimately reducing delays and disruption.
  • Safety: The enhanced network will allow Network Rail to monitor the condition of railway assets more effectively, meaning that faults can be identified and located in real-time. This reduces the number of manual inspections required to be undertaken by frontline workers and supports a more targeted approach to engineering.
  • Connectivity: The deployment of new fibre optic cable, and new mast infrastructure along major rail routes will improve connectivity for train passengers by enabling an uninterrupted signal throughout the entire journey when using their mobile phones for calls and internet browsing. These connectivity improvements will also benefit those living in rural areas next to the railway.

Supports government’s connectivity objectives

The upgrade of Network Rail’s telecoms infrastructure will continue to support the Government’s commitment to roll out gigabit-capable connections across the UK and improve broadband services for “very-hard-to-reach” premises.  

Building Digital UK (BDUK) recently completed a project with Network Rail Telecom to upgrade to high-capacity fibre cable along 116km of the TransPennine rail route between York and Manchester which stimulated commercial investment and enhanced digital connectivity for rail services and passengers. The Trans Pennine fibre upgrade project was seen as a catalyst for this latest initiative that will see significant funding provided by the private sector.

Contact information

Passengers / community members
Network Rail national helpline
03457 11 41 41

Latest travel advice
Please visit National Rail Enquiries

Journalists
Network Rail press office - James Crook
Senior Media Relations Manager
Network Rail
07732 644202
james.crook@networkrail.co.uk

About Network Rail

We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.

Usually, there are almost five million journeys made in the UK and over 600 freight trains run on the network. People depend on Britain's railway for their daily commute, to visit friends and loved ones and to get them home safe every day. Our role is to deliver a safe and reliable railway, so we carefully manage and deliver thousands of projects every year that form part of the multi-billion pound Railway Upgrade Plan, to grow and expand the nation's railway network to respond to the tremendous growth and demand the railway has experienced - a doubling of passenger journeys over the past 20 years.

Follow us on Twitter: @networkrail
Visit our online newsroom: www.networkrailmediacentre.co.uk