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The number of excuses for not responding to e-mail is shrinking quickly, partly because of lofty ambitions of Boeing Co., which has developed an in-flight wireless broadband Internet service geared to the business traveler.
Boeing wants to provide satellite broadband connectivity to every seat in the world's commercial aircraft fleet, a service that holds huge revenue potential for Boeing and will keep business travelers wired while jetting to their destinations.
Boeing is not alone in its plans to provide travelers with in-flight connectivity. In November, Tenzing Communications Inc. demonstrated its in-flight email service during a Cathay Pacific flight from Seoul to Hong Kong. Cathay Pacific will launch e-mail and Internet service across its fleet this year, according to Tenzing. Singapore Airlines also is testing Tenzing's technology.
While most agree that in-flight connectivity is inevitable, "it's probably going to happen later rather than sooner," said Mary Rogozinski, manager of onboard systems planning for United Air Lines Inc. She notes that too many questions remain about what customers want from such a service, what they're willing to pay, and what the costs are to equip planes for broadband.
"It would be hard to imagine it wouldn't happen," says Charles Breer, director of product development and marketing research for Northwest Airlines. But like Rogozinski, Breer expresses concerns about pricing and implementation of an inflight Internet service.
Boeing's service, Connexion by Boeing, is now being used by about 11 corporate customers, who have outfitted private jets with Boeing gear. The system uses an on-board server linked to antennas on an aircraft's fuselage, which in turn are linked to commercial space satellites that transmit and receive signals from land-based data centers. The system uses the Ku band fixed satellite frequency range-12 GHz to 14 GHz-and Boeing has leased 11 Loral Skynet satellite transponders with options for more, according to spokesman Terrance Scott.
Boeing's proprietary phased array receive and transmit antennas are designed to steer signals electronically, allowing instantaneous and continuous connections between commercial satellites and airplanes. Planes outfitted with Boeing's system will essentially become local area networks complete with RJ-45 Ethernet jacks at each seat. The airborne network is capable of receiving data at 20 megabits per second downstream and 1.5 Mbps upstream. Bandwidth essentially will be shared by all users on the plane, and Boeing estimates that one-third of passengers will be using the service one-third of the time.
With 48 percent of air travelers in the United States pegged as business travelers-and 70 percent of them carrying laptop computers on board, according to Boeing research-a significant number of travelers are poised to plug into an onboard Internet service.
Ric VanderMeulen, director of marketing for Connexion by Boeing, says the market for Connexion by Boeing could touch $40 billion in revenue by 2009. "Our objective is to capture a significant share of that market," he says. VanderMeulen expects the service to be available broadly next year, with some installations perhaps taking place later this year, although no deals with airlines have been announced yet.
While the Connexion by Boeing service is slated to bring live TV and audio content to airborne surfers, VanderMeulen points out that the service is first and foremost targeted to connecting travelers with their corporate intranets. "We believe the most valued content is your content," he says.
Boeing seeks to establish virtual private network service connections between its land-based data centers and corporate networks.
Most of the major airlines are looking at the various on-board connectivity technologies, says Paul Nisbet, aerospace analyst for JSA Research Inc. Still to be determined, however, is how airlines and service providers like Boeing and Tenzing will divvy up revenues for the service. Airlines, Nisbet says, would rather buy the equipment and control the service. "It's going to be an interesting battle between the airlines and Boeing to see who will actually provide the service."
Yet Nisbet adds that Boeing brings a lot to the table in terms of expertise. Bolstered by its recent purchase of Hughes Electronics Corp.'s space and communications business, Boeing has "as powerful a satellite group as any in the world," says Nisbet.
Meanwhile, Northwest and United are moving cautiously before embracing the concept. Breer says Northwest "might be able to test something this year." But Breer also expresses concerns about travelers having to rely on multiple Internet Service Providers (ISPs) for connecting at airport lounges, gate areas and hotels. "We'd like to try and look at this as a complete picture," he says, suggesting a type of "roaming ISP" service.
Another open question is acceptance of the subscription costs. While there probably would be some discounting for corporate bulk usage, hourly fees now being tossed around are in the $15-20 range.
Rogozinski says United's experience with its onboard phone service, while disappointing, nevertheless has demonstrated that "as important as it is for people to stay in touch ... they're also willing to wait."
As the industry wrestles with these issues and more, including the touchy topic of turning flight attendants into information systems specialists, broadband connectivity, in some form, seems inevitable. But the time of arrival is still up in the air.
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