[Satellite News 12-07-11] Late last month, Inmarsat signed two partnership deals for its Global Xpress services with GoGo and OnAir. The two companies are set to become key distribution partners for Inmarsat as its plans for Global Xpress swing into action.

   Inmarsat Global Xpress Managing Director Leo Mondale spoke with Satellite News about the MSS operator’s latest round of contract negotiations and the challenges ahead for Inmarsat’s Global Xpress program in 2012.

 

 

Mondale: As our recent announcements demonstrate, we have been putting the equipment, technology and distribution agreements in place. We have a value chain that is nicely rounded out, and our focus now is taking this to market. So expect to see more announcements in 2012, leading to the start of a regional service in 2013 and global service in 2014 – milestones for which we are not just on schedule, but well ahead.

 

 

Mondale: The advantages of Ka-band are well known ­– higher performance and lower cost. The technology itself is settled, with over one million two-way Ka-band terminals entering the market in the last three years alone. Much of that has been focused on the consumer broadband markets in the United States and Europe, with other geographies rolling-out in the next few years.

Global Xpress is the only effort to bring the advantages of Ka-band to bear on the global mobility market, and to address aviation, maritime, energy and military needs. We are the only company to adapt Ka-band for those purposes, and to join it together with our successful, long-standing global mobility services. It gives us a strong market lead.

 

Satellite News: What are the key decisions that Inmarsat needs to make in order to capitalize on next year’s trends?

 

Mondale: The key trend is that the higher performance and superior economics of Ka-band will win out over Ku-band for many VSAT applications. The commercial advantages of offering a service that can deliver significantly higher performance at a lower cost are undeniable and very attractive to our target markets.

 

 

Mondale: We regard passenger connectivity as separate from, but compatible with, all IFE systems and also attractive for the many aircraft without traditional IFE systems. Inmarsat aviation services are already installed on around 12,000 aircraft – we are already present on most of the world’s airline fleets as it is.

It is important to remember that 40 percent of commercial aircraft do not have IFE at all. And for the larger fleets that do, they have a diversity of IFE systems across their fleet. Inmarsat and its partners will work with all of them. But this is a connectivity initiative, independent of IFE. Those airlines without IFE will still have passengers coming onboard with iPhones, iPads and smart phones, and expecting to be able to use them inflight. This is what is changing the market opportunity – it’s a bigger market opportunity than simply IFE.

 

 

Mondale: The agreements with OnAir and Gogo are focused on the commercial air transport segment, and in particular the passenger connectivity market opportunity. We anticipate other distribution agreements covering government and business aviation, including a number of our current distribution partners, but the Global Xpress plan for serving the airline passenger market will be through OnAir and Gogo.

   In general Gogo are currently focused on the North American market, and OnAir covers the markets outside of North America. They each intend to become truly global players, and between the two we are confident we can address every airline opportunity that comes up. These are two well-established providers that are focused on passenger connectivity solutions and value added services. One of the critical factors in their selection was their ability to work with whichever IFE system an airline chooses, including mixed fleets, and their ability to serve the many aircraft that do not have traditional IFE systems – we see that as crucial in the roll-out of GX services in this market.

 

 

Mondale: There is no question that it will have some effect, but in other ways it offers a real opportunity. We have already committed the capital investment for Global Xpress. It is fully funded, we have passed the Critical Design Reviews with Boeing for the satellites and iDirect for the network, and we have appointed ILS as the launch provider. This is going to happen, and on schedule.

   And it is coming at a time when few other major projects of this type will get the green light, and just as the demand for global high-bandwidth communications continues to expand.

Markets like aviation and shipping are facing economic pressures but they will survive and they’ll need connectivity to do that. And although governments are cutting back their plans for their own communications infrastructure, they will be looking to the commercial sector to supplement what they have in place now and ensure they are able to meet future needs. Global Xpress will be uniquely positioned to do that.