The South Central Railway (SCR) has quietly gone ahead with a pilot project towards opening up its railroad network for Internet traffic, after which Indian Railways (IR) is expected to throw open the network for Internet traffic throughout the country.

Sources say IR has around 8000 stations covering most towns and large villages in India, which are separated by an average distance of 7 kilometers.

The railroad network could be the second largest backbone in India, after that of the department of telecom (DoT). At present, IR has only voice communication systems installed.

The SCR has announced a single-window clearance for ISPs interested in utilizing the railroad network. Satyam Infoway (Nasdaq: SIFY) and WorldTel have evinced interest in the scheme, which is in the final stages of testing.

The tests are expected to be completed in a few weeks, highlighting the possibilities of the network potential. The cost involved for setting up infrastructure at each station by ISPs (or their franchisees) is around US$1600, excluding rent to IR.

Indian Railways will ultimately throw open the network for Internet traffic throughout the country, using the same single-window system in the zonal offices to speed up the process.

While IR would benefit from an additional source of income, it would also be connected completely on an intranet over the same network.

The company has joined hands with Banyan Networks Ltd, which has successfully deployed DSL-on-copper technology using the railroad network.

Optical fiber is also available along some major routes.