InvestorsHub Logo

e-ore

09/29/17 6:49 PM

#266 RE: e-ore #265

IPTK a cheaper alternative to the money-losing current state of aircraft internet inflight connectivity (IFC) providers. Here's commentary today about how the major players' survival may only be possible through consolidation. IPTK's bluetooth system in partnership with one of the major players would be a powerful combination, imo. Would increase the levels of connectivity and features without adding cost, imo.

"The In-flight connectivity industry is at a crucial commercial crossroads as consolidation pressure increases on the growing number of companies vying for an ever-shrinking opportunity space."

"But despite falling costs and robust IFC demand, profitability for service providers remains elusive. Even Gogo, one of the larger providers whose stock has fared well of late, is not forecasting profitability until 2019.

The IFC strategic conundrum is not unfamiliar in service industries. Multiple providers can profitably coexist when they stick to their territory, which amounts to only a few firms competing in any given region. The difficulty occurs when firms all attempt to organically scale globally, undercutting each other in the hopes of locking up long-term business (see the rideshare industry). And as part of the process, they lock themselves into unsustainable prices."

"And over the past few years, candid executives from IFC service providers have acknowledged that “no one is making money”

"The core driver behind many new ventures is uncommitted customers, and IFC seemingly has a lot of them — more than 75% of aircraft remain unconnected"

"What started off as an industry of one and a world of possibility has evolved into excessive competition and an ever-shrinking opportunity space. The land-grab is over. And now one thing is certain. Whenever the first deal is announced, more transactions will be quick to follow. It will prove, as did Connexion’s precocious debut more than a decade ago, that timing is indeed everything in the IFC sector."


http://interactive.aviationtoday.com/avionicsmagazine/gca-link-september-2017/timing-is-everything-when-will-ifc-consolidation-take-off/?mkt_tok=eyJpIjoiTVdKa1pUYzVNMk0zWlRBeCIsInQiOiJGY1BlZnlDcng5Nm96UUNWSmtIQk5wN2hYc3VlUFVIOStIczBcL2ZXZjdSNmU5dkNwT0NKc0FqZDJ1XC9yV2tkZE8yRHp6SlltckZYXC9uY0UycDFqZ3NYTVlBTUlpWThOTlM5cWdoWDAydVBlQVpDemdIRHQzUDBISFVLdkpvOWtncyJ9

e-ore

10/09/17 8:16 AM

#268 RE: e-ore #265

IPTK's bluetooth IFC system a perfect solution to little airlines (like Eagle air in Uganda who just became a twiiter follower) who have short flights where movie streaming is impractical. fflya would allow:
"Email, SMS, IM, Google, Twitter, Banking, News, Booking, Billing, Weather and the back end of all Social Networks."
Easily integrated with the airlines app. Here's another article detailing the possible consolidation coming to the IFC industry, and some current issues with some of the providers.

https://runwaygirlnetwork.com/2017/10/08/consolidation-is-hot-topic-again-as-inflight-connectivity-industry-matures/

I don't know if IPTK is interested but they would be a perfect pickup for one of the larger providers who could then offer their service to the smaller companies, or some of the larger ones like Spirit or Frontier who are too cheap to spend million and millions of dollars just so their customers can stream video. If what's in italic above is all you want to do IPTK's system would be a winner.