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Discussion Starter #1
This is a thread for any developments in public transportation in Iceland. Currently, it consists of city buses in the Reykjavík area that are operated by Strætó bs which is a company owned by six municipal authorities in the area. Akureyri and Reykjanesbær have bus networks as well along with some smaller towns. Long distance buses used to be operated by a bunch of private operators that were granted monopoly on specific routes. It was a messy, disjointed and expensive system. For the last few years, local authorities around the country have been reclaiming those long distance routes and made deals with Strætó bs to operate them. Now we have a unified system of long distance busses under a single logo that will look like this on 1 Januar 2015:

 

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are there any plans to create a route from Egilsstaðir to Höfn(or vice versa), completing the ´ring road´? also, as part of the new Stræto route to KEF, do you think that is will take a big chunk out of the flybus and RE market?
 

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are there any plans to create a route from Egilsstaðir to Höfn(or vice versa), completing the ´ring road´? also, as part of the new Stræto route to KEF, do you think that is will take a big chunk out of the flybus and RE market?
The local authorities in eastern Iceland have their own regional bus system which connects the major towns there so I guess you could take a bus the whole circle.

The new KEF route will be interesting to watch. It will be cheaper than the flybus but it stops more frequently and takes longer. Integration with the city buses in Reykjavík is probably a nice bonus for some, you can transfer to any bus within the city without paying additional fare. It isn't primarily focused at air travellers but I'm sure that some of them will be willing to save some money.
 

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are there any plans/suggestions of creating a smart card pay as you go system payment system for the buses? Such a system is almost standard in most public transport systems around the world. Currently tickets are rather low-tech paper card tokens, a smart card would allow on demand payment(without having to visit a ticket office to obtain physical tickets), but also have the ability to load season tickets and student discounts.
Maybe contactless credit/debit cards could also be supported(as these are become quite common in Iceland) and this could increase ridership as there is a wider range of payment choices.
 

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Discussion Starter #7
are there any plans/suggestions of creating a smart card pay as you go system payment system for the buses? Such a system is almost standard in most public transport systems around the world. Currently tickets are rather low-tech paper card tokens, a smart card would allow on demand payment(without having to visit a ticket office to obtain physical tickets), but also have the ability to load season tickets and student discounts.
Maybe contactless credit/debit cards could also be supported(as these are become quite common in Iceland) and this could increase ridership as there is a wider range of payment choices.
I have heard no indication that smart cards are on the horizon for buses. They seem rather focused on the mobile app as a payment option. There was a plan for introducing bus smart cards as early as 2005 but that was one huge management failure that people are still embarrassed about. Poorly defined objectives, unreliable partners and costs spiralling out of control.

I can see contactless debit/credit cards being supported in the near future. Conventional debit/credit cards have been supported for the long-distance routes from the beginning.
 
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