The in-flight broadband services market is expected to grow to $936 million in 2012, according to recent research by MultiMedia Intelligence (MMI).

 

MMI’s research report anticipates that given a projected 2H 2008 launch of revenue service—initial trials, with full launches ensuing—the in-flight broadband market will debut and generate $6.6 million worldwide in passenger revenues in 2008.

 

The latest report by MMI, “Broadband in Flight: Wi-Fi and Direct Broadcast Video Become the Next Generation of In Flight Entertainment,” observes that despite all the troubles, airlines are investing in new entertainment services due to their potential for additional revenue generation.

 

Amy Cravens, contributing analyst at MultiMedia Intelligence, said that in-flight broadband is entering a new era, adding that since Boeing (News - Alert) ended Connexion several years ago, in-flight broadband has seemingly been void of activity.

 

“However, during this lull, several initiatives to re-launch in-flight broadband have been underway, as industry players prepare to launch in-flight service,” she said.

 

In-flight broadband solution providers have been divided in two camps: providers employing air-to-ground (ATG) technologies, and providers using satellite-based technologies.

 

Also, there is division in the in-flight entertainment (IFE) market of whether to offer a less costly narrowband solution, or whether to deliver a costlier broadband solution.

 

The research report finds that there is extensive debate during this initial trial period about what will be the winning technology for in-flight broadband connectivity.

 

MultiMedia Intelligence’s new research also finds that today’s lighter weight systems offer airlines significant fuel savings over previous generation solutions.

 

On a fleet-wide basis, MMI estimates the annual savings for a typical airline is nearly $15 million, and in addition, air-to-ground (ATG) solutions which do not create aerodynamic drag from an exterior antenna can provide additional savings as well.

 

The research says that the in-flight broadband market has a “strong correlation” to the on-ground Wi-Fi hotspot market, a market in which leisure users will account for 50 percent of access sessions in 2008.

 

Boingo and iPass (News - Alert), roaming aggregators, are important to driving usage, according to the research findings. Providers are in talks with roaming aggregators, an initiative which, in addition to driving usage, is also expected to improve consistency in passenger experience and support in identifying broadband-enabled flights.

 

The research report also projects that live in-flight broadcast video is expected to see significant growth in 2009, and usage revenues are anticipated to nearly double in 2009.