Drillpipe capable of transmitting high-bandwidth data from downhole sensors and surface control signals back to those sensors has been developed and successfully tested. The system incorporates a high-speed data cable that runs the length of each joint and downhole tool. The cable terminates at induction coils installed in protective grooves machined in the secondary torque shoulders of double-shouldered tool joints at each end of the pipe. The system is virtually transparent to standard rig procedures and offers robust, reliable operation.