Mobility

October 27, 2006
Keeping in touch on the move

Geetanjali Babbar

NEW DELHI -- "Business travelers are leading the demand for in-flight communications," stated a global survey of airline passengers commissioned by OnAir. More than any other group, people traveling for business purposes want to be able to use their mobile devices during flights. The research revealed that travelers who are on business trips, in particular, want to use their smartphones, like BlackBerry and Treo, to send and receive e-mails and to be reachable by phone during flights.

The research demonstrated that among travelers flying for business reasons:

• Over 90 percent carry a mobile phone when traveling;
• Up to 40 percent carry a BlackBerry or Treo when traveling;
• Nearly 65 percent of BlackBerry and Treo users would turn their devices on during flights;
• Nearly 94 percent would take calls and check e-mails during flights; and
• Nearly 82 percent would make calls and send e-mails during flights.

Mobile OnAir, which will allows passengers to use their mobile phones, BlackBerrys and Treos during flights, will be installed on Air France flights from early 2007 and on Ryanair, bmi and TAP flights from the middle of 2007.

George Cooper, CEO of OnAir, said: “It is very clear that air passengers want to remain in touch during flights, and we have the solution to make that happen. Airlines have an immediate opportunity to provide a new and innovative service for their passengers and in particular, their valuable business passengers.”

OnAir was incorporated in February 2005 and is a joint venture with Airbus, the aircraft manufacturer with the most modern and comprehensive product line on the market, and SITA, the world's leading provider of air transport focused applications, communications and IT infrastructure. The OnAir service portfolio addresses passenger voice and data communications needs on both long- and short-haul flights, on commercial Airbus and Boeing aircraft, while focusing on passengers’ needs, offering choice, and ensuring an economically viable business model for airlines. OnAir is a member of the GSM Association and the first Distribution Partner for Inmarsat’s SwiftBroadband service.

A breakdown of the survey results also shows that, although business travelers are more likely to use their mobile devices than leisure passengers, a very significant proportion of leisure passengers also want to remain in touch during flights. The highest volume activity will be SMS messaging. Nearly 33 percent more texts are likely to be sent and received than any other application, including voice calls.

The survey further highlighted cultural differences. For example, the mobile phone appears to be used as both a business and a social tool by French travelers, but more often used by British travelers as just a business tool. In addition, Spanish travelers stand out in Europe as wanting to remain in touch, with 67 percent saying they would turn their phone on during flights. Nearly 80 percent of all respondents, whether they would use their mobile devices during flights or not, had a positive perception of the concept.

In-flight connectivity technologies have been around for several decades now. Initially, they were available to flight crews only. In the late eighties, systems like Airfone in North America, enabled passengers to make phone calls using an air-to-ground communication system. In parallel, a few satellite-based systems were launched. However, voice calls on these systems were expensive and used by passengers for emergency situations only. As an increasing number of air travelers carry laptops and Blackberrys, in-flight connectivity systems are now evolving to deliver broadband data and cellular voice in the plane. Broadband data can be most cost-effectively provided to planes by ground-based networks. The US FCC recently auctioned 1.5MHz of paired spectrum for building a ground-based ground-to-air communication network. The winner of this auction is most likely to select CDMA2000 1xEV-DO as the technology to communicate from the ground to the plane. Wi-Fi may be used inside the plane to let passengers share the 1xEV-DO connection to the plane.

There are two main elements to passenger communications -- voice and data. The voice services will enable passengers to use their mobile phones and PDAs to communicate during flights. In addition to being able to make and receive voice calls, they will also be able to send and receive SMS messages and e-mails, using phones and PDAs. The data services will enable passengers to access the Internet through laptops, or to access Webmail and Webchat through the seat-back in-flight entertainment screens.

According to Micha Lawrence, founder and CEO of Starling, in-flight connectivity is about providing passengers and crew with true, two-way broadband connectivity, which enables them same communication services they use on the ground. Air travelers don't want to be "plugged off" just because they are 35,000 feet in the air. They want to be carrying on with Internet, e-mail, online TV, mobile phones, PDA, etc.

Business Jet travelers want to stay connected to their office and to their home, with same bit rates as on the ground. The in-flight communication market includes commercial aircraft as well as business jets. The key players in the segment are service providers (CBB, Arinc); SATCOM integrators (ViaSat, Rockwell, Honeywell); antenna providers (Starling); in-flight devices (Thales, Rockwell), etc.

Gauging the rising demand for in-flight connectivity market, various carriers are chewing over the thoughts to make a move toward the greener pastures. For instance, Air New Zealand has begun surveying passengers to see if they are keen to use cellphones and access e-mail and the Internet on planes. However, rivals such as OnAir are all set to fill the gap with a whole new array of services. According to industry sources, Qantas will conduct trials of a similar service from Panasonic early next year. OnAir is also preparing its own in-flight Internet service and promises to let passengers stay connected at "economical rates" when flying around the world on both Airbus and Boeing aircraft. The joint venture already lets passengers on nine airlines, including Qantas, send text messages for US 50 cents, using their in-flight entertainment system.

Airbus, an EADS joint company with BAE Systems, is a leading aircraft manufacturer with the most modern and comprehensive product line. The company's strategy, to stay upbeat in this market, is to team with long-term players. As part of its strategy, Airbus sources its satellite communication solutions from Inmarsat, the global mobile satellite communications solutions provider, which offers 3G satellite communications covering the entire globe. The service enables Airbus customers to offer in-flight connectivity to their passengers.

Patrick Candelier, Cabin Services Marketing, Airbus, said: "Inmarsat is our satellite vehicle. To integrate the hardware into the aircraft we need a service provider. Our preferred service provider is OnAir. We have designed a platform, ALNA (Airline Network Architecture), to addresses the needs of both Internet and mobile phone services. The platform is specific to Airbus. We firmly believe that as far as in-flight connectivity in concerned, we are a generation ahead.

"In-flight connectivity is an emerging market, and is moving rapidly. In partnership with Inmarsat, we offer stable strategy with reliable connectivity," he added.

David Bruner, strategic marketing director, Panasonic, "In-flight connectivity took a major step forward with Connexion by Boeing service. It was the first truly broadband service for aircraft. But it was very expensive to operate and is ultimately being terminated as of the end of this year. Panasonic hopes to fill this void with an even better performing and more cost effective solution."

Most sought-after services for in-flight communication

George Cooper, CEO of OnAir suggests that passengers will, largely, want to use the voice services on short-haul flights, and the data services on long-haul flights. traveler's

According to Patrick, travelers demand connectivity for mobile phone as well as Internet. To cater to this huge demand, the company plans to enter the telephony service market on single aisle A320 aircraft family by Q2-07 and in this same timeframe plans to offer Internet services on the A330, A340, A380 families. By Q2-08, the company will extend the same platform to offer mobile phone services along with the Internet on the A330, A340 and A380. By 2008, the company is looking at offering a single solution for both Internet and mobile services.

Another research has revealed that SMS is likely to be one of the most popular forms of in-flight communications, with e-mail close behind. E-mail is also predicted to be a key driver for mobile data services, with 90 billion being sent by 2009.

Amit Jain, director, product management, Airvana, agreed: "E-mail access via laptops is likely to be most sought-after service for in-flight communication."

Airvana, an innovator and leader in broadband CDMA network infrastructure systems based on 3G EV-DO wireless packet data technology, plans to enter the in-flight wireless broadband market. Working with industry leaders such as Verizon Airfone Inc, Airvana’s technology provides vast benefits over competing technologies. Airvana’s customised IP-based EVDO Rev A radio base station has unique RF filtering capabilities to ensure that no interference is caused to systems operating in adjacent radio bands. Airvana’s Rev. A technology also includes a 3-4x increase in uplink speeds, and support for VoIP, broadcast and multicast services.

"I expect broadband data to be the dominant application for laptops, phones and PDAs. Voice will be popular in certain markets. Video services are already available on many aircrafts and will continue to evolve independently," noted Amit Jain..

Commenting on the pricing and promotion plans for such services, Amit Jain, said: "Though current broadband services are expensive ($14.99 - $29.99 for transcontinental flights), broadband in the air may become less expensive in the future as more cost-effective ground-to-air networks are deployed. In the long-term, it is conceivable that in-flight broadband may be priced at the same price as Wi-Fi services at business hotels and airport lounges are priced."

Challenges

There are some technical challenges in the development of the system. Much of the technology that OnAir uses is based on what is currently available on the ground and the challenge has been to develop that technology so that it is small, light and rugged enough for the airplane environment. Also, there are challenges in working with the telecom regulators.

Ground-based communications systems, not satellites, provide the most cost-effective way of providing in-flight broadband. The technology to build cost-effective ground-based systems exists today. Similar systems can be rolled out in other parts of the world if other governments allocate a small amount of spectrum for in-flight broadband connectivity.

Certification and regulation

Aircraft systems, including voice and data communication systems used on board, need airworthiness certification to certify that the system does not present a risk to the aircraft and its safe operation. Furthermore, in the case of telecom systems such as that which OnAir is proposing, the system must not interfere with ground telecom networks when passengers are using their phones and other devices.

In other words, before passengers can use their mobile phone or other transmitting devices on board, there must be an acceptable agreed legal basis to do so. It will have to define the conditions of operation and authorisation. Mobile telephony service providers require authorised access to spectrum. This is equally the case whether the services are provided in-flight or on the ground. It is therefore crucial to obtain authorisation to access spectrum from the appropriate national authority in charge of assigning frequencies, as well as any necessary licenses.

Airbus manages the aviation certification issues for OnAir, whilst OnAir has a dedicated team of specialists addressing all of the telecom regulatory issues. Given the national basis of telecom regulation, nationally-based solutions will be required. However, given the international nature of aviation, it will be necessary for national solutions to be harmonised, if not internationally, at least regionally. OnAir has, therefore, also taken a regional approach to regulatory approval. Its strategy is to ensure that there are regionally harmonised frameworks setting out an acceptable approach covering access to spectrum and authorisation of service provision on board.

OnAir believes that exemption from spectrum licensing is the most appropriate way for regulators to grant access to spectrum, in view of the fact that the operation of OnAir’s system will not result in harmful interference to other networks. Interference (to both avionics and terrestrial networks) must be minimised. In the OnAir system, the on-board channel equipment will ensure that mobile phones on board select the OnAir system whilst working at minimum power levels. It will also ensure that mobile handsets/phones will not attempt to connect to network signals outside the aircraft. Those signals will vary depending on the country being over flown.

The regulatory approval process cannot be circumvented. OnAir is actively engaging with national telecoms regulators, with a view to identifying regulatory solutions, which ensure access to spectrum and authorisation to offer onboard services. At the same time, OnAir continues to be an integral part of the development of regional frameworks that are essential to enable in-flight mobile telephone use. The regulatory approval process is not specific to any single service provider and will benefit the entire industry. However, the complex link between avionics certification and regulatory licensing requires specialisation in both aeronautical and telecommunications disciplines.

According to Amit Jain, the US FAA and several international aviation regulatory bodies have approved the use of Wi-Fi in planes. Regulatory bodies in the US, Canada and Mexico have allocated spectrum for air-to-ground communication. Other countries are considering allocating similar spectrum.

Has in-flight communication taken a big step backward?

Boeing has decided to exit the high-speed broadband communications connectivity markets. It will work with its customers to facilitate an orderly phase out of the Connexion by Boeing service. As per Jim McNerney, chairman, president and CEO, of the company, the market for this service has not materialized as had been expected. The commercial failure of Connexion may have been more about mistakes made by the company than a general lack of a market for such a service, according to analysts.

Commenting on the reasons that played an integral part in Boeing's failure, Patrick Candelier said: "Boeing's strategy was different. Boeing was offering service using the Ku-band, and had to deploy transponders at bother the sides. The technical choices of both the companies (Boeing and Airbus) have been entirely different."

"Airborne connectivity is not "if" but "when" it will be a standard in the sky," emphasised Micha Lawrence, founder and CEO of Starling.

George Cooper, CEO of OnAir added: "OnAir’s proposition is different from Connexion by Boeing. The two companies have taken a fundamentally different approach to developing passenger communication services, from the very basics of the technology used, to the most fundamental element: the needs and preferences of the target market. OnAir has always worked toward meeting passengers’ stated preferences. Our model recognises passengers’ differing requirements, ranging from using their mobile or BlackBerry-type devices, to accessing webchat and webmail through the in-seat in-flight entertainment system, to full Wi-Fi Internet and VPN access through their laptops. Our initial objective is to introduce GSM and GPRS services in Western Europe in 2007, followed by Internet services on long-range aircraft in 2008. The response to our plans seems to confirm that the OnAir approach will meet mainstream market needs for an economically viable set of services appropriate to the diverse onboard communication needs that airline passengers want."

The market for this service depends on the number of mobile handheld devices. These devices are rapidly proliferating, which indicates a very strong market for in-flight broadband. Boeing was using a satellite-based technology that probably did not provide them the economics necessary for long-term success. Other companies remain very enthusiastic about the market. For example, the winner of the air-to-ground spectrum auction in the United States, Aircell, paid over $31 million.

Broadband communications and the use of the network to deliver new and exciting new content to the aircraft is going to happen. How quickly we see these changes take place depends on how the airlines see the vision of what could be in this market.