JetBlue Providing WiFi/TV For Other Airlines?

from the helping-the-industry-out dept

Prior to 9/11, there was a lot of effort being put into plans for internet access from airplanes. However, the resulting turmoil in the airline industry put all of those plans on hold. In the end, that may have been a good thing, as the early technology was both expensive and clunky, and only a few generations later are we starting to see technology that is both affordable to install and use showing up. In the last few months, we've seen more and more stories about WiFi in the sky, with the latest one being that Continental is about to start offering live TV and WiFi, similar to a few other airlines. Having just flown on Continental on an excruciatingly long trip to Europe and back, I'd say that having internet access and live TV would have made the flights much more enjoyable.

What's really interesting here, though, is that Continental is turning to competitor JetBlue to provide the service. We were among those surprised when JetBlue bought some available spectrum for air-to-ground internet access. Like many, we had suspected that it would go to a service provider that would provide a generic service to any airline that wanted it. But, with JetBlue winning the bid, it opened up questions about whether the company would hoard the opportunity as a differentiator for its own flights. Apparently not. If JetBlue can succeed in outfitting other airlines, it could represent a useful side-business for the company -- even if it diminishes some of JetBlue's own competitive advantage. Of course, given that a new study has suggested that WiFi-in-the-sky really isn't a huge selling point, perhaps this makes sense. Basically, people are saying that it's a nice-to-have rather than a need-to-have. In other words, it's unlikely to bring that much new business directly to JetBlue, but if JetBlue can make it available on lots of other airlines, people would be happy using it.

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WiFi On Airplanes Coming. Does That Mean Airborne Skype?

from the we-can-hope dept

The New York Times says that several airlines are testing in-flight Internet services. JetBlue will apparently be offering free, but crippled service that includes only email and instant messaging. And Crunchgear suggests it will be even more crippled than that: only Yahoo! and BlackBerry-based mail and IM will be supported. For a lot of travelers (including me) that will be completely useless, although I guess something is better than nothing. At the opposite extreme, American (along with Alaska Air) is reportedly working on full-featured Internet access that will allow you to use the applications of your choice, but it will apparently cost around $10. The Times also notes the most intriguing possibility for this service: that Internet access may mean the ability to make VoIP-based phone calls. It's not clear that the Internet connection will be good enough to make phone calls practical initially, but as technology advances, it's only a matter of time before there's enough bandwidth to make calls practical.

The Times calls this a "pitfall" and says that American won't permit Internet-based phone calls. But I have trouble imagining that ban sticking. Once it becomes technologically feasible to make calls, it will be extremely difficult for airlines to enforce a no-calls rule. There's no automated way to block phone calls, and stewardesses will have a difficult time policing the activities of dozens of passengers. The only way it would work is if the caller's neighbor was willing to rat him out, and I suspect that fellow passengers are a lot more opposed to the idea of cell phones on airplanes in the abstract than they would be about an actual cell phone caller in the seat next to them. After all, cell phone calls are commonplace on buses and trains, and while they're occasionally annoying, they're no more annoying than a loud real-life conversation or a crying baby. There's no groundswell of support for banning cell phone calls on public transit, despite the fact that the annoyance factor is exactly the same. One possibility is that we'd see different airlines cater to different customers, with some airlines aggressively prohibiting airplane-based phone calls and others allowing them. My guess is that business travelers, who generate a disproportionate share of airline revenues, will find the ability to get work done on the airplane to be worth the minor inconvenience of occasionally having to listen to a neighbor's phone call, and so airlines that permit calls will be more profitable.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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