Posted by Skyler Frink
SCOTTSDALE, AZ, 10 Oct. 2011. Over the past year there has been significant growth in both the usage rates of in-flight broadband and number of planes deployed. With new providers now entering the market, growth is sure to continue in the coming year. Additionally, what has been a US-centric market began to see an expansion of borders with deployments in Europe growing over the past year and new activity in the Middle East. New research by In-Stat forecasts that in-flight Wi-Fi revenues will surpass the $1.5 billion mark in 2015.
"While airlines initially viewed in-flight broadband as a competitive differentiator, it is now simply viewed in the US market as a competitive requirement," says Amy Cravens, Senior Analyst at In-Stat. "The future of in-flight Wi-Fi will be less about convincing airlines of the merit and more about leveraging the network to provide a broader breadth of services. As in the hotspot market, Wi-Fi access is likely to become a commodity in the in-flight market, with the revenue opportunity resting on the services and features, not the connection."
With more people taking advantage of in-flight Wi-Fi, the rate having increased from 4% of passengers to 7%, it isn't surprising that airlines are considering Wi-Fi a requirement.
As in-flight broadband has become more common, providers have found new ways to increase revenue. operational services and passenger services, such as voice and video, are being introduced for a fee.
