Rail passengers will benefit from free wi-fi on trains across England and Wales from 2017, Rail Minister Claire Perry.

Rail operators are being asked to set how they will meet the commitment to provide this important service for passengers. All train operators bidding for new franchises and direct award agreements will have to include this specification in their bid.

Where there is no new franchise agreement due in the next 2 years, almost £50 million of funding will be released from the Department for Transport to ensure wi-fi is available on selected services from 2017.

The department has challenged rail industry operators to begin installing equipment as soon as possible to deliver wi-fi by 2017.

The operators will now work with the department to develop detailed proposals identifying the most appropriate services and routes to benefit. Funding will be awarded subject to satisfactory proposals being received from TSGN, Southeastern, Chiltern, and Arriva Trains Wales.

Some operators have already installed equipment to provide improved mobile coverage on-board their trains, or are in the process of doing so. By targeting the investment at franchises that would otherwise have no immediate plans to introduce wi-fi, the government is ensuring that as many passengers as possible benefit.

The £47.8 million funding is money that Network Rail has been required to return to the government for missing punctuality targets set by the Office of Rail Regulation. It is the first time such money has been reinvested into improvements targeted at passengers.

Out of the £53.1 million total penalty against Network Rail, £5.3 million has been allocated to the Scottish government, in line with the proportion of the penalty paid by Network Rail for late train running in Scotland.