Study shows cost of in-flight Wi-Fi now within reach of budget airlines

The release of a report from Juniper Research based in Hampshire, England, has shown that the adoption of in-flight Wi-Fi by budget airlines will boost the connected IFE (in-flight entertainment) market, increasing the number of connected commercial aircraft from the current level of 3,200 to over 10,400 by 2020. This new research, titled In-Flight Entertainment & Wi-Fi Connectivity: Market Prospects 2015-2020, found that as the cost of of standalone in-flight Wi-Fi hardware has fallen so much, and because major aircraft manufacturers will soon be offering it as line-fit equipment, for the first time connected IFE is financially attractive to low-cost airlines operating short-haul routes.
To make the availability of Wi-Fi a financially more feasible proposition to low-cost carriers, the intention will be for them to adopt a BYOD (bring your own device) policy whereby passengers will be encouraged to use their own devices to stream content provided by the airline. However while this will reduce IFE hardware costs and weight, it will undoubtedly raise a number of security and safety issues as airlines will have little or no control over passengers’ devices.
Gareth Owen, the author of the research, noted that “Airlines must ensure that they address all types of risks, including that of a rogue passenger hacking into an aircraft’s avionic systems or servers, with potentially disastrous consequences.”
However the research identified that while service providers are positioning themselves as end-to-end providers who are able to provide a full suite of connectivity, content and hardware options to carriers, the numerous challenges facing a number of suppliers, including Gogo and Panasonic Avionics, will likely see a period of consolidation as market demand develops.
The increasing availability of Air-To-Ground (ATG) and satellite networks across the world is also providing impetus. The research identified that the new advanced ATG networks, including Inmarsat’s European Aviation Network, will reduce cost connectivity and provide higher capacity within high-traffic density regions. On top of this, current High Throughput Satellites will reduce satellite segment costs while increasing capacity worldwide.