AS-IP Tech Inc (IPTK)

[e-ore]

In flight wifi getting more expensive. Customers seem to be unwilling to pay a premium for streaming video. $25 per flight? $9 per hour? If customers are happy with basic connectivity, IPTK's system is ideal.

"When JetBlue first launched its ViaSat Ka-powered Wi-Fi, it offered two tiers. The base tier was free, while a streaming tier was priced at $9 per hour, $1 less than what Gogo is charging on 2Ku. JetBlue found that so few passengers opted for the paid plan that it eliminated it altogether and now only offers free access.

During the recent APEX Tech meeting in Los Angeles, long-time industry veteran Peter Lemme discussed the “difficult challenges for us in the connectivity world” of offering free connectivity “because there are costs involved and they have to be paid back”. He noted that “airlines talk about offering paid services today and wanting to go free in the future” but “actually I would be going free today and pay in the future because the trends are going in the wrong direction."

"The increased pricing scheme flies in the face of Delta’s CEO Ed Bastion, who recently spoke with Cranky Flier about the future of Wi-Fi pricing at Delta. “At some point, we’re going to have to figure out how to get Gogo at the same price-point customers expect the value is, which is free,” said Bastion. “Maybe there will be a two-tier, free and a premium service.” While the premium service has materialized, the free tier has not."

https://runwaygirlnetwork.com/2017/08/07/gogo-spotted-dramatically-overhauling-2ku-pricing-on-delta/