top of page

Wi-Fi Waves Farewell: English Train Passengers Disconnect as Cost-Cutting Takes the Lead!





  1. The Department for Transport (DfT) in England is considering removing train onboard wifi as a cost-cutting measure. Advises operators to discontinue if not financially justified. ๐Ÿ’ป๐Ÿ’ฐ

  2. Passenger surveys indicate wifi is low on the list of priorities for travellers, esp. on shorter journeys. ๐Ÿ“Š๐Ÿš†

  3. Critics argue that no wifi could discourage commuters from using trains as internet connectivity is essential for work/entertainment, making onboard wifi an important amenity. ๐Ÿ™…โ€โ™‚๏ธ๐Ÿ“ฑ

  4. Similarly, in India, the plan to bring wifi to train journeys got derailed back in 2021 for better cost optimisation. ๐Ÿ’ธ๐Ÿšซ


Estimated Cost Savings: Unquantifiable. ~$20 Mn. - ~$100 Mn. per annum ๐Ÿ’ฐ๐Ÿ’ธ

Cost Optimisation Impact:

  1. Cost-cutting reform could impact rail travel as passengers increasingly rely on wifi. ๐Ÿš†๐Ÿ’ป๐ŸŽง

  2. There may be a mix of disappointment, understanding, and a sense of adjusting to the change among rail passengers. โ˜น๏ธ๐Ÿค”๐Ÿ˜•

  3. Given wifi on trains is a low priority for passengers, the government intends to reinvest the cost saved for better use of tax payerโ€™s money

Country: United Kingdom ๐Ÿ‡ฌ๐Ÿ‡ง

Company: Multiple Rail Companies/ Rail Delivery Group (RDG) ๐Ÿš‚๐Ÿข

Industry: Rail transport ๐Ÿš†

Cost Element: Technology and Communication Expenses or Connectivity Costs ๐Ÿ“ก๐Ÿ’ป๐Ÿ”Œ

Nature: Opex + Capex ๐Ÿ’ฐ๐Ÿ“Š

Cost Classification: Variable Cost โš–๏ธ + Operations Overheads โš™๏ธ





ย 


CONTACT US

Reach us if you have any concerns regarding cost management accounting issues in your organization.


SANKALP WADHWA

Partner, Chandra Wadhwa & Co. (Cost Accountants) | B.Com, FCMA, ACA, DISA | Certified SAP-CO Consultant | Executive Program on Management and Finance (IIM, Ahmedabad)


Address: 1305 & 1306, Vijaya Building, 17, Barakhamba Road, New Delhi - 110001, India Mail: sankalp.wadhwa@cwcindia.in

Tel: +91-8800018190, +91-7503703599.

Website: www.cwcindia.in



bottom of page