The in-flight broadband market has achieved a remarkable revival over the past several years. Plane deployments have skyrocketed from just 25 aircraft in 2008 to an expected 2,000 commercial aircraft by the end of 2010. While the installed base of aircraft is approaching a critical mass, the viability of in-flight broadband will be tested over the next year, according to a new report by Research and Markets.
Usage of the service has been disappointingly low, at an estimated 2 percent of available seats. How providers respond to current usage challenges could make or break the future of in-flight broadband.
The commitment that airlines are making to providing in-flight broadband has been remarkable. Total in-flight broadband equipment investment should approach half a billion dollars globally by 2013, reports In-Stat (http://www.in-stat.com). In-flight Wi-Fi deployments have moved past the trial stage and are approaching critical mass with 2,000 airplanes to be deployed by the end of 2010.
In-flight broadband service roll-outs by airlines is not without issues though, says Frank Dickson. With current paid take rates for in-flight Wi-Fi service below 2 percent, providers have a lot of work to do to entice passengers to use the service. Significant investment has been made in on-board and on-ground infrastructure, and now the market will be tested as it tries to get more passengers to use the service.
The report by In-Stat research, Build It and They Will Come? The In-Flight Broadband Marketexamines the market for next generation in-flight entertainment (IFE), with a focus on in-flight broadband services. The emphasis of this report is on market potential, usage, business models, and competitive analysis for the in-flight broadband market. For the purpose of this report, next generation IFE services are segmented by access technology (GSM, satellite, air-to-ground) as well as application (voice, video, and data).
Highlights of the research by In-Stat found the following:
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In-Stat is anticipating service revenues of $95 million in 2010.
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Airlines that have report offering or testing in-flight broadband or live TV include Air Asia, Air AsiaX, Air Blue, Air Canada, Air France, AirTran, Alaska Airlines, American Airlines, British Airways, British Midlands Airways, Continental Airlines, Delta Air Lines, Frontier Airlines, Jazeera Airways, JetBlue, Kingfisher Airlines, Northwest, Oman Air, Qantas, Qatar Airways, Royal Jordanian, Ryanair, Shenzhen Airlines, Southwest, TAM Airlines, TAP Portugal, United Airlines, US Airways, Virgin America, and Wataniya Airways.
