Where are transponders typically installed?

Transponders are typically installed within the track gauge as this placement allows them to effectively communicate with trains traversing that section of track. Being positioned in this way ensures that the transponder can relay critical track information to train systems, including but not limited to location data and signal status, which is essential for maintaining safe operations and enhancing the overall efficiency of rail traffic management.

In contrast, other potential locations like above the tracks or at train stations may not provide the same level of direct communication with the trains as they pass. While transponders on trains themselves might be used in conjunction with those on the tracks, their primary function as infrastructure is to provide vital information to the train from its environment, which is best achieved when they are located within the track gauge.