The system will use EU-standardised GSM-R technology and Tetra for emergency services, analogue train radio system and fire brigade services.
The new system, along with the already prepared multiband system, will allow passengers to access the usual mobile phone services in the bypass.
The system will improve rail safety and efficiency by replacing the individual national train communication systems with GSM, the company said.
The system will also allow the rail operator to improve cross-border cargo dispatching and process new applications such as ticket sales, electronic passenger information and seat reservations, the company added.
The new €1.8m contract by Austrian rail operator ÖBB is an extension of the earlier deal for a multiband wireless system in Inntal tunnel, bringing the total value of the deal to about €3.1m.