By Andy Pasztor
Airbus SE, Delta Air Lines Inc., Sprint Corp. and two U.S.
satellite-services providers have kicked off an initiative to
enhance internet access on airliners, inviting other companies to
join voluntary efforts to upgrade global standards for airborne
connectivity.
The concept, still in its early stages, likely will require time
to gain traction and develop necessary hardware and software
changes. It also hinges on technical approvals from government
regulators and aviation groups, along with overcoming traditional
rivalries between wireless and satellite-services companies.
But if enough carriers, plane makers, communications providers
and equipment suppliers eventually sign on, it could usher in an
entirely new approach to airborne connectivity: faster speeds plus
an improved user experience because passengers wouldn't have to pay
separately for broadband services on board.
A group calling itself the Seamless Air Alliance spelled out
benefits of the potential changes on Sunday in Barcelona in
conjunction with the opening of the Mobile World Congress, the
annual gathering of the telecommunications industry. Mobile
operators world-wide would be able to extend service directly into
airliner cabins, allowing passengers to use their phones, tablets
or other devices to seamlessly connect to the web while
airborne.
As envisioned by proponents, connections would be available for
an array of devices using various mobile networks just the way
Wi-Fi hot spots now work on the ground. Connection speeds, rivaling
the fastest cable access, would be comparable with those expected
with widespread rollout of commercial fifth-generation, or 5G,
cellular service across the U.S.
For passengers, extra benefits would be avoiding the time, and
sometimes frustration, of having to authenticate devices and use
credit cards to pay for them before logging on during flights.
In addition to Sprint, the No. 4 mobile carrier in the U.S. by
subscribers, the alliance includes New Delhi-based Bharti Airtel
Ltd., which operates mobile networks in 16 countries across Asia
and Africa.
Other early members include OneWeb Ltd., a satellite startup
developing a global broadband network; EchoStar Corp.'s Hughes
Network Systems; and in-flight internet provider GoGo Inc.
Together, companies already backing the initiative carry some 150
million airline passengers and serve roughly 450 million mobile
users world-wide.
For years, many airlines around the globe have struggled with
persistent user complaints about high prices, low speeds and
sometimes-balky systems that offer internet access for passengers.
Some carriers have experimented with upgraded satellite
connections, while others have opted to make such services
free.
If the latest concept takes off, airlines could eliminate the
costs and hurdles of certifying and installing customized cabin
internet systems, according to Greg Wyler, OneWeb's founder. In an
interview, Mr. Wyler said uniform hardware and operating standards
are intended to provide outstanding "service quality that airlines
and mobile operators can be proud of."
Mr. Wyler stressed the alliance hopes to persuade many other
companies to join, with the long-term goal of simplifying and
improving the passenger experience through lower costs and easier
use. "There are no smiles included" with current airborne broadband
systems, he joked, adding that initial tests of the new approach
could take place before the end of the year.
OneWeb, slated to commence service in coming years, would
provide part of the satellite component.
Airbus and Japan's SoftBank Group Corp., which owns more than
80% of Sprint, both are partners with Mr. Wyler in OneWeb.
In a news release, Gil West, Delta's chief operating officer,
said "we are excited to be collaborating" with forward-looking
companies, including existing partner GoGo, to develop a system
"that not only benefits Delta customers, but the entire airline
industry." The same release quotes Dow Draper, Sprint's chief
commercial officer, about the aim of "enabling customers to
experience Sprint's high-speed connectivity in the air,
hassle-free."
Some skeptics, however, question the proposal's ultimate reach
and competitiveness. With the largest global satellite fleets
marketing as much as four times the capacity they had just a few
years ago, prices of existing options for airborne connectivity
have dropped sharply, according to industry analyst Roger Rusch.
That trend, he said, could make it especially hard for new entrants
such as OneWeb's low-Earth-orbit constellation to compete.
Apart from significant technical challenges of devising common
standards acceptable to many different industry players, the
concept doesn't yet address basic economic issues. Relationships
between airlines and their internet providers often are fraught,
and past disputes about divvying up costs and profits prompted the
demise of several would-be projects.
Mark Dankberg, chairman and chief executive of satellite
operator ViaSat Inc., is rolling out higher-speed internet
connections to customers, including airlines. In an interview
Friday, Mr. Dankberg said ViaSat, with roughly 600 airliners in its
system, has 1,000 additional aircraft under contract to be
connected around the globe. United Continental Holdings Inc.,
American Airlines Group Inc. and JetBlue Airways Corp. are among
ViaSat's customers.
Mr. Dankberg said the upgraded internet connections are poised
to benefit passengers flying across the Atlantic, the Caribbean and
parts of Latin America. He also said the new system would alleviate
capacity issues that can impair passenger connectivity near busy
hub airports.
Write to Andy Pasztor at andy.pasztor@wsj.com
(END) Dow Jones Newswires
February 25, 2018 20:29 ET (01:29 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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