Boeing has high hopes for its Connexion service, an airline in-flight broadband service aimed at providing passengers with better entertainment and Internet access via satellite. Recently, Boeing signed a deal with Eutelsat to provide capacity for a three-month trial of in-flight broadband access for passengers flying between Washington and Frankfurt.

Terrance Scott, director of communications for Connexion by Boeing, told Interspace, “Our long-term solution for transponder capacity in the region is the Estrela du Sol satellite scheduled for launch by Loral SkyNet. Since it hasn’t been launched yet and wouldn’t have been operational for the Lufthansa and British Airways (BA) service demos, we secured satellite capacity from both Eutelsat and Intelsat. Thus far, the Lufthansa demo has been extremely successful and we expect that level of success to continue during the BA demo, as well. Regarding the latter, the BA demo is a commercial service since passengers will be charged to have unlimited access to the service during a flight.”

The service is a further indication of the increasing diverse use for satellites, and in particular the push towards broadband. The three month trial with Eutelsat is not a move to see whether the system works, but rather to expose the service to passengers to gage demand. Scott added: “We will continue to gather information about how passengers will use the service, what they are willing to pay for real-time connectivity, learn more about managing the overall service and satellite networks, fine tune our customer support services and really help to ensure that the Connexion by Boeing service the preferred choice among the global airlines when we begin rolling it out on a broader market basis beginning in the first quarter of 2004.”

The service is certainly one of the more innovative uses of satellite capacity, and could change the dynamics of airline entertainment. Scott said: “Real-time, high-speed connectivity into airplanes is the service we are providing to them. Movies and stored audio are great forms of entertainment, but there is a finite limit to what you can get on an airplane. So, consequently passengers have choices that fall far short of their preferred demands. This is why we think the market is there and why passengers are saying they want to be connected. It allows them to be there own ‘content programmer’ instead of the airline making the choice for them. It allows passengers to stay in touch with the world as they travel and to be as informed as they want to be.”

Boeing has done a considerable amount of research in the U.S., Europe and Asia to understand consumer service and pricing preferences regarding the service. Pricing for Connexion service will be determined on an individual airline-by-airline basis. If the service proves a success, it is likely to offer a number of opportunities for satellite players. Scott said: “Our ongoing intent is to add additional transponder capacity as we roll the Connexion service out in other parts of the world. Those decisions will be driven by airline and passenger demand. The key here is it’s really about choice. We think the effect is profound as connectivity moves into the cabin.” –Mark Holmes

(Contact: Terrance Scott, Boeing, e-mail: [email protected])