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

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Posted July 1, 2010

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- 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 (http://www.in-stat.com/). 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.

New In-Stat research, Build It and They Will Come? The In-Flight Broadband Market (#IN1004767WS) examines 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).

The report is global in scope and includes:

  • Hardware/installation and usage/revenue forecasts.
  • Hardware forecasts include total installation cost.
  • Forecasts provide aggregate and annual deployment numbers.
  • Forecasts are built by leveraging multiple sources including, but are not limited to, supply-side market research and secondary sources.

For a free sample of the report and more information, please contact Elaine Potter at: epotter@in-stat.com or (480) 483-4441.

To purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=167.

The price is $2,995 (US).

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions.



CONTACT:

In-Stat
Frank Dickson, VP Research
480-483-4467
fdickson@in-stat.com
or
Rick Vogelei, Marketing Manager
480-483-4476
rvogelei@in-stat.com

KEYWORDS:   United States  North America  Arizona

INDUSTRY KEYWORDS:   Technology  Hardware  Internet  Telecommunications  Transport  Air  Mobile/Wireless  VoIP

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