NS, the Dutch train operator, suspends trials of onboard Internet, cancels plans (press release in Dutch): The operator, which was considering putting Internet service on hundreds of trains, says that the potential advertising revenue that they had planned to use to cover the service isn't enough, and that the costs of installing service exceeded their expectations. They're shutting down a trial of Internet access and train information that they've had underway for some months. They're refocused just on train information (like arrival times), which has smaller overhead.
This is yet another indication of the difficulty of providing Internet access to trains, but not the impossibility of it. Rail lines can opt for line-of-sight WiMax or equivalents, cell data networks, or satellite for backhaul. No option is cheap or easy, but all are possibilities.
Back in September, I noted that the three train lines in central California considering Internet service or having once deployed it--ACE, Caltrain, and Capitol Corridor--are currently all in abatement. ACE still has a coming soon banner on their site after many months; Caltrain decided the bids for service weren't a good deal for them; and Capitol Corridor never launched its pilot tests due to problems with bidders. Update: I was too hasty on Capitol Corridor's plans. They were able to participate in a joint test with Caltrain which, although costs weren't to Caltrain's liking, could work for the CC Joint Powers Authority that runs the rail. The agency documented its plan, which involves working closely with Union Pacific Railroad, for a full deployment by 2009 if all goes well in negotiations and planning.
When I wrote about train-Fi for the Economist on 21 Sept 2006, I had spoken and corresponded with a good 20 people in all aspects of the industry--service providers, private operators, train authorities, consultants, and so on. The general buzz then was that with a number of service providers working hard, that perhaps several hundred trains would be equipped with service by now. We're probably still at just above the same number as last year: perhaps 100 trains (not cars, but operating engines on lines) worldwide having real Internet service.
A catalyst might be needed, like a new, less expensive broadband satellite offering, cell operators extending their service specifically for trains along certain corridors, or simply more work on WiMax and other licensed technology that could be deployed in the right places.