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Monday, 09/25/2017 10:04:15 PM

Monday, September 25, 2017 10:04:15 PM

Post# of 1631
IPTK's system - "The end result is an aircraft platform that is up to 90% cheaper than Wi-Fi and does not have the certification/installations complexities of Wi-Fi, plus is up to 98% more data efficient which directly translates to user cost."
(using bluetooth and the aircraft's already-existing satellite connection)

Full details here
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=127769028

They've been working the shows, hope to see news of a deal soon.

Here's some info on how others are doing for in flight connectivity. Bold is my emphasis

“How much blood do you have in your pockets? You’re bleeding out all this time. Everyone says, ‘Oh, it’s not a problem.’ But it is a problem. It is a real problem.” That’s not the optimism and excitement you’re hoping to hear when talking to a senior executive from an inflight connectivity provider about the future of the industry. But this is the view David Bruner, VP of Global Communications Services for Panasonic Avionics shared during a frank discussion at the recent Aircraft Interiors Expo in Hamburg, Germany. Opining on the current state of the business, Bruner said, “One of the things we don’t talk about in our business very much is that nobody is making any money,” and also the necessary investment to get from here to “there” where things might stabilize and even become profitable. He appears reasonably convinced there will be more bloodshed before the industry reaches that point.

The success of these connectivity systems hinges on volume. Getting the per bit price low enough depends on significant volume discounts on contracts from satellite operators. Getting the management, maintenance and operations budgets low enough depends on amortizing many of those costs across thousands of installed aircraft, not just hundreds. And, perhaps most significantly, getting the necessary coverage and capacity in the sky depends on stimulating sufficient demand to justify the launch of satellites which cost hundreds of millions of dollars each. “You won’t have everyone going out to build global networks; not many people can lose that much money,” said Bruner.

His comments suggest that simply being a conveyor of bits and bytes is not a long-term recipe for success.

Even in the Panasonic suite of products the connectivity platform might not be the profit center. But the Ku-band link helps provide “more cost effective line maintenance. It can provide higher reliability on our IFE systems and help us win business in that category and that really helps. We’re a bit of a loss leader right now,” said Bruner of the embedded IFE giant.

Bruner, meanwhile, expressed skepticism at the long-term viability of some current pricing models, noting irrational competition as “everyone is trying to make a name for themselves”. Maybe per bit pricing will stabilize or costs will come down so there are better margins to be had, but Bruner did not have a specific timeline nor budget in mind, “It takes a LOT of money and a long time to get enough aircraft under the network that you can start to break even and see profits.”

He acknowledged that his message was a bit of a downer overall but he’s not ready to write the industry off. Even though Panasonic is a loss leader in connectivity right now, Bruner said, “Fairly soon we should break even,” though he would not offer up specifics on a date or number of aircraft needed in service to get there."


https://runwaygirlnetwork.com/2015/05/11/consolidation-seen-as-inevitable-for-inflight-connectivity-industry/

So the global leader, Panasonic, is losing money with inflight connectivity. Global Eagle hasn't filed financials in almost a year and got a delisting notice from NASDAQ. GOGO is how deep in debt now? They did better last year, only lost $26 million. And they're all spending billions in total on technology that may be out of date in a few years. Who else remembers cellphones in a box that used VCR batteries? They were state of the art too. Bluetooth rules, imo

My posts are my opinion. Do not be influenced by anything you read on any message board website unless you can confirm it.

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