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Wednesday 14th July 2004

Broadreach and Virgin agree on new Net train company 5:38PM, Wednesday 14th July 2004

Broadreach, the Wi-Fi hotspot operator, has announced a further tie up with Virgin. As well as Broadreach receiving extra funding, the deal involves the launch of Broadreach Train Services Limited (BTSL), a specialist subsidiary to provide on-train Internet access. Virgin Trains, of course, will be the primary customer of this new venture.

The new company will work closely with Pointshot Wireless, which already provides similar services in the US and Canada. Full trials of BTSL's new turn-key system will begin 'shortly' in the UK.

'We are committed to ensuring that people on the move are able to enjoy simple-to-use access to the Internet,' said Broadreach CEO, Magnus McEwen-King explained. 'The formation of this subsidiary is evidence not only of Broadreach's commitment to the provision of on-train Internet access, but also of our investor's belief in the BTSL business plan. Our discussions with the train operating companies have provided further endorsement: this is a company that caters for every aspect of the roll-out of an on-train Internet access solution, and most crucially at a time when road, rail and air transport are in intense competition, providing the train operators with a powerful competitive advantage.'

It was back in July 2003 that

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Virgin first announced trials for on-board Internet access. This grew out of plans to provide broadband services at the Birmingham International and Manchester Piccadilly stations, which followed a hotspot at London's Euston station.

But Virgin isn't the only player in this field - GNER is already the first operator to provide on-board Wi-Fi access.

Back in December 2003 GNER started providing onboard Internet access on trains running from Kings Cross, through York and Leeds, to Newcastle and Edinburgh. GNER said it would gauge customer reaction before deciding whether to provide access across its entire fleet, but in April of this year it pronounced the scheme a success and began its rollout.

GNER's satellite-based system is provided free in first class and at �4.95 per hour in standard (power points also being available). It uses technology from the Swedish firm Icomera.