Inmarsat CEO Rupert Pearce sees a big future in connected transportation, so much so that he believes aviation could ultimately usurp maritime as the biggest revenue generator for the operator. Right now, commercial aviation accounts for around 10 percent of Inmarsat’s overall Mobile Satellite Services (MSS) revenues, so it still has some way to go, but Pearce sees many reasons why aeronautical connectivity could become number one.
“Over the next decade there is the potential that aviation could become our largest business, because of the scale of the aviation industry, its sectoral growth dynamics, and because it is almost uniquely an area where mobile satcoms can service the needs of consumers — passengers travelling on commercial airlines. As such, there is the potential for aviation to vie with our maritime business as our largest business segment,” says Pearce.
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The company is right at the epicenter of these key new data markets for satellite operators. Pearce talks in-depth about the operator’s plans in the aviation market. He sees a number of key contracts up for grabs right now. Pearce says Inmarsat sees very significant levels of activity throughout the world, with airlines looking to implement their connectivity strategy. He describes it as “a very active” market.
“Airlines across the world have gone from thinking about a connectivity strategy to implementing a connectivity strategy. It has gone from something that only the thought leaders have been implementing to something the fast followers are doing as well. More than that, airlines know they not only need a connected aircraft fleet, they need to ensure a very high quality of connectivity so that customer expectations are met, and they need a long-term relationship with their supplier that can ensure that the airline’s connectivity services stay at the cutting edge for many years to come,” he says.
Pearce sees a lot of pent-up demand out there, and reveals that Inmarsat is involved in tenders around the world with both regional airlines and global carriers, from short haul to long haul.
Inmarsat is also funding the development of a unique hybrid satellite-terrestrial network to provide airline passenger connectivity throughout Europe. The operator’s European Aviation Network (EAN) combines satellite communications from Inmarsat and an Air-to-Ground (ATG) network, which will be built and maintained by partner Deutsche Telekom.
While aviation maybe the most exciting growth segment in Inmarsat’s business over the next few years, maritime continues to be a dynamic market. Pearce believes the maritime industry has been gradually embracing connectivity in recent years and that we are now moving into the “smart ship” environment, which is about providing connectivity to all of the systems and sub-systems on a ship; using everything from broadband connectivity to the Internet of Things (IoT), telematics, telemetry and consulting to drive a step change in efficiency, safety and regulatory compliance, and supporting crew welfare and training too.
Inmarsat also hopes to expand into the leisure part of the maritime business. It is also targeting the fishing and coastal markets with an ultra-low-cost and ultra-light cut down version of FleetBroadband called FleetOne.
With new Low Earth Orbit (LEO) constellations launching, and the growing influence of the NewSpace movement, the industry is clearly on the cusp of change. Pearce says the industry is indeed at the beginning of a new era, and that satellite is seen as increasingly relevant to solving communications problems that society has.
“The pace of innovation has been upped; that is very exciting. But, it is also going to be an era of enormous disruption; incumbents will be ousted, winners will become losers. We could be looking at a very different competitive environment in five to six years than we have today,” he says. “While that is challenging, exciting and exhilarating, it is also unnerving as well because of the profound prospects of change which lie ahead. So, this is a time to remain on the ball, taking intelligent risks, but, above all, investing in innovation and bringing it through very quickly. The demands of our industry are upping all the time.” VS
