About 800 airplanes will offer in-flight broadband by the end of this year, which could generate more than US $47 million worldwide, according to a report by In-Stat.
The research, called ‘Delayed Departure: Will In-Flight Broadband Take Off?‘, predicts the in-flight broadband market is “still emerging” and could grow beyond $1 billion annually by 2012.
“The market is clearly gaining momentum, with deployments escalating in number,” said In-Stat analyst Daryl Schoolar, in the press release. “However, in-flight broadband faces challenges, by the struggling economy and competing non-traditional IFE (in-flight entertainment) solutions.”
The high tech research firm also said that live broadcast video is “poised for significant growth in 2009”, as the service is more established than in-flight broadband. Usage revenues are anticipated to nearly double in 2009 and continue to “grow strongly” through 2013.
The research also found that:
– In-flight broadband equipment revenue will nearly double between 2009 and 2013;
– Competing in-flight broadband providers include Aircell, Panasonic and Row44;
– Over 200 million annual in-flight broadband connects are forecasted by 2013, with long-haul connects dominating over short-haul connects;
– Connections from handheld devices will account for about 1/3 of connects, with notebook computers accounting for 2/3.
Several US airlines have committed to full fleet deployments, including American, Delta, and Southwest.
Closer to home, Industry Canada recently announced that Ottawa-based SkySurf Canada Communications outbid MTS Allstream in the sealed-bid auction for ownership of the spectrum needed to offer in-flight broadband to airline passengers in Canada. SkySurf bid more than $5.1 million for the two spectrum licenses in the bands 849-851 MHz and 894-896 MHz, while MTS Allstream bid $2.1 million for the package.
The Toronto Star recently reported that Air Canada will test the Aircell-owned service called Go-Go this summer on a small number of flights to the United States.
– Lesley Hunter
