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In-Flight Wi-Fi revenues to surpass Rs.6,726 crore

Posted: 03 Oct 2011     Print Version  Bookmark and Share

Keywords:Wi-Fi  In-Flight 

In-Stat research forecasts that in-flight Wi-Fi revenues will surpass the Rs.6,726.46 crore ($1.5 billion) mark in 2015.

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.

"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. "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."

In-Stat research report includes that take rates have increased significantly, moving from an average of 4 percent in 2010 up to 7 percent in 2011. While in international markets in-flight broadband is just entering the competitive differentiator stage, In-Stat believes it will rapidly transition to a competitive requirement in these markets as it did in the US. In-Stat research further includes that combined smartphones and tablets are now the predominant devices, in terms of percent of connects. In-flight broadband providers are beginning to introduce new revenue opportunities, including additional passenger services (video and voice) and operational services.

For more statistics and forecasts, click here.

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