From the IPTK ceo 8/2018
AS-IP Tec Inc. Aug 2018 Copyright AS-IP Tech Inc 2018 Iridium Status Aug 2018 I am pleased to advise that the recent SpaceX launch of the 7th group of Iridium Next satellites has been successful,with 65 low earth orbit satellites now in operation providing global coverage.Why is this significant?Both our new generation business jet and airline systems are designed to leverage off it.Iridium Next is a second generation $3 Billion satellite constellation. The original Iridium classic satellites were launched back in 2000 and their primary function was satellite telephone. The US Military is still their largest customer. We used the classic satellites to pioneer our Bluetooth technology on business jets. Iridium Next will still support telephones and our existing classic systems.It’s the enhanced data network which Iridium Next delivers that is our future. Iridium Next will have a minimum fifteen-year life and is the largest and most powerful low earth constellation in operation. Low earth orbit satellites are only 600 kilometres up and ideally suited for our small Bluetooth narrowband solution. Wi-Fi broadband satellites are 33,000 kilometres up, which is why our competitors need large and powerful aircraft systems and have to commit billions of dollars to implement a system on major airlines.Iridium Next was originally scheduled to commence operation in 2016. Unfortunately SpaceX had a major launch failure in 2016 that delayed the schedule. SpaceX is the revolutionary Elon Musk low-cost satellite launch system, perfectly suited to deliver low earth orbit satellites into space.The SpaceX delay also impacted on our Bizjet revenue. Installations and service revenue grew 2016/2017 and we had expected to start selling the Iridium Next system by mid 2017. Obviously, that did not happen. As the classic system was being phased out, we focused our efforts on an Iridium Next airline system. The aim -once the new network came online we would be ready to take advantage of it. With additional funding in place at the start of 2018 we were able to embark on the airline program. The new system created by our engineering team is exceptional and the response we are getting from marketing discussions in Europe (our launch target area) confirms we have the right formula.We target Europe first as it has the largest number of disconnected low costs airlines and the ideal demographic, the leisure traveller. The new airline system is also the new business jet system and we expect to ship the first airline system later this month and commence initial flight testing on both a business jet and an airliner in Q4. To provide an insight on our target market, detailed below is the latest industry status, including our technology and business model update. As you will see, the airline connectivity market for low cost airlines is still in its infancy.
AS-IP Tec Inc. 20182 Industry Status According to Airfleets.com there are approximately 28,000 commercial airliners and as at June 2018, IATA reported 4.4 Billion passengers fly per annum. Of the 28,000, 18,968 are 100+ seat narrow-body aircraft carrying approximately 3 billion passengers of which, 15,294 are Boeing 737 or Airbus 320 series. The remaining 5,967 are Boeing or Airbus long-haul large aircraft. IATA, Boeing,and Airbus current industry outlooks forecast 47,000 aircraft will be in operation by 2035, of which 35,000 will be narrow body. The latest Valour Consultancy report states that “the connected fleet will reach 21,000 by 2026 up from approximately 7,500 today”(estimated 5,500 in operation and 2200 on back order). North America accounts for 70% of the connected fleet of which approximately 2,000 are 100+ seat aircraft. This leaves 16,000+ 100+seat airliners looking for a solution today and a further 19,000 to come.According to the recent Sky-High Economics Report, connectivity revenue is predicted to grow from $1 Billion in 2018, to $130 Billion per annum by 2035. With an estimated$100 Billion narrow body upside, the timing for a new solution could not be better.Why our target -Low-Cost Airlines -do not have Wi-Fi The pain point for low-cost airlines to install Wi-Fi is the very high cost of equipment,installation, operations and Wi-Fi satellite services which relies on charging passenger high access fees to recover the cost.The solution to that problem is a disruptive technology that can eliminate that pain point and that’s where the ASI program comes in.The ASI team has a 2-decade history of connectivity programs with technology that is either, world’s first or, a quantum leap in aircraft communications. fflya, our new airline system reduces the system cost to as little as 20 cents per flight and in most cases zero. More importantly with the new Iridium Next satellites,our satellite data is so highly optimised, we can transmit a message for as little as $0.0002 per text. As every message sent is underwritten with an embedded sponsor, we have no satellite data cost, which is why we able to provide free messaging for every passenger.No high access fees or heavy complicated systems with huge antennas on the roof. Just a micro satellite Bluetooth system that connects via a revolutionary window antenna to the latest Iridium Next Satellites. The end result is a system that can be installed overnight without any major modification to the aircraft and can accommodate every passenger and crew member on a B737 or A320 series narrow-body aircraft. Why does it work? fflya leverages off the absolute latest technology, Bluetooth 5. Not the old Bluetooth you use on your phone or in your car, but the new long-range Bluetooth incorporated in Apple and Android watches that automatically connects hundreds of devices. The new Bluetooth was driven by Apple and first released in 2010. Eight years later it’s imbedded in every mobile device, you just don’t know you have it. That’s because we normally think Bluetooth is used for voice, but the new smart watches run on it. That’s why you can send or receive a text on your Apple watch.Why will low-cost airlines select it? Our small system, simple installation and free messaging service are key pillars for low cost airlines however, there is one component that completely changes the way they think about connectivity.Low cost airlines make more money off ancillary revenue than ticket sales and have millions of passengers using their booking app on the ground. Once inflight those apps are useless without connectivity thus creating a major missed opportunity to promote to a captive market.The fflya platform when imbedded into an airline booking app brings it to life inflight. Current IATA research shows 62% of passengers will access free messaging and more than 50% of all connectivity usage is for messaging and email. By embedding free messaging into an airlines booking app, more passengers will download the app and use it inflight. This extends the airlines digital reach and opens up a new marketing opportunity. fflya also opens up a new live and interactive approach for advertising and promotions inflight creating benefit for the low-cost airline and its sponsors. Once a static environment with magazine and seat back advertising, now fflya adds interactive promotions to the passenger’s device of choice, the mobile phone or tablet via their airline passenger app.The airline and the sponsor can now control and influence what passengers see and do as they use their app inflight. Every promotion in the app contains interactive links with the ability to book or activate car rental, accommodation, tours and attractions, airline goods and services as well as enter into product promotions and competitions. fflya’s world first technology enables an airline to change promotional and information banners multiple times on their passenger app live inflight. For the passenger, a fflya airline app is now a research and informational tool embedded on their phone with 45,000 destination targeted tours and attractions presented and programmed by flight. What to do, where to go, what to see, where to eat -all at their fingertips and bookable inflight. Discount coupons, airlines goods and services plus tours and attractions can keep passengers engaged for an entire flight, save them money and drive revenue for an airline and ASI. To close the loop fflya works on ground on Wi-Fi or 4G, thus extending an airlines digital reach and our revenue earning opportunities even further. fflya brings it all to together with the one thing people want when they travel -the ability to stay in contact with family and friends for free. ASI benefits from instant access to millions of passengers and receives commissions on every booking, sale, promotion or sponsorship delivered and controlled by fflya’s global gateways and programmed by individual route.
AS-IP Tec Inc.Aug 2018 Copyright AS-IP Tech Inc 2018
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