In-Flight Broadband Revenue to Increase 1,357%, Says In-Stat

Published on: 1st Jan 1970: 1:33am

Wi-Fi airplane deployments have skyrocketed from a couple dozen in 2008 to an expected 2,000 planes by end of year 2010. While availability is approaching a critical mass, paid usage generated from in-flight broadband service has been extremely low, says In-Stat. In-flight broadband is now at the stage of market development where it must prove its sustainability through the ability to generate revenues.

"Revenues from in-flight broadband will reach $95 million in 2010, up from just under $7 million in 2009, according to Frank Dickson, VP Research. "However, the fee per connect is expected to deteriorate as lower connect fees are negotiated for roaming and billing partner subscribers."

Additional data points impacting revenue include:

• Connect fees are projected to decline 24% from 2010 to 2014.
• In-flight broadband connects will exceed 76 million in 2012.
• In an effort to bolster Internet revenues, providers are beginning to explore the opportunity to provide video, Direct Broadcast Satellite (DBS) and Internet-based video. DBS revenues promise to be over 3x the size of Internet video in 2014.
• Aircell is currently the in-flight broadband provider market leader with announced airline partners including Air Canada, Air Tran, Alaska Airways, American Airlines, Continental Airways, Delta Airways, Frontier Airways, United Airlines, US Airways, and Virgin America.

 

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