Ticketing in the form of smart card is set to be introduced on South West Trains when the franchise is renewed next year.

The smart cards will operate like London's Oyster card which can be used for Pay As You Go travel or hold an electronic travelcard or season ticket. The card is read by special devices at stations and on buses. The system introduced by South West Trains will also have to accept the Oyster card.

The franchise winner will also have to improve security at stations and on trains. No major changes to the timetable are planned.

The South Western franchise will cover two existing operators, South West Trains and Island Line, who provide services on the Isle of Wight. Both train companies are currently operated by Stagecoach plc. Three other companies are bidding for the new franchise in addition to Stagecoach.

Commenting on the details of the tender, Transport Secretary Alistair Darling said:

"As technology advances it is vital that we ensure that future passengers benefit from the improvements it can bring."

"Passengers on these routes will benefit from smart integrated ticketing across the franchise area - we will be working with train operators to ensure similar benefits can be introduced for passengers elsewhere."

The winner will take over running of the two companies on 4th February 2007 and will be required to have a smart ticketing system in place by 2009.