Transcript WAEA TC, 4June08

In-flight Cellphone Use
What’s the real story and what’s
the US missing?
Adla Hendry, AeroMobile
Briefly… an update about AeroMobile
100% owned by Telenor, 7th largest Telco worldwide
First and foremost a mobile service provider with an
airborne network
Regional offices in Dubai, Singapore, Oslo, and
Seattle
>70 wide body cellular deployments today
Commitments from national flag carrier airlines
(Emirates, Malaysian Airlines, Turkish Airlines,
V Australia, Lufthansa)
Hardware sold via Panasonic – branded eXPhone
AeroMobile / Panasonic
Avionics Corporation.
Best Achievement in
Technology 2008
Agenda
• What’s Happening on the Ground?
– Network Evolution
– Handset and Application Trends
• How Does This Translate to the Cabin?
• What’s the Real Story on Usage?
• What is the US missing?
Agenda
• What’s Happening on the Ground?
– Network Evolution
– Handset and Application Trends
• How Does This Translate to the Cabin?
• What’s the Real Story on Usage?
• What is the US missing?
Pervasiveness of Cellular...
3.9 billion subscribers, 80% worlds population covered by GSM
networks
1991 (first GSM call), 1992 (first SMS sent), 2000 (GPRS launched)
Next 5 years Mobile broadband will go mass market outstripping
fixed line.
GPRS (≈40Kbs) , EDGE (≈ 120Kbs) , 3G (≈ 384Kbs) , HSPA (>1Mbs) and LTE
(≈ 100Mb/s)
Mobile devices support multiple protocols and have the intelligence to switch
between them as appropriate
Mobile operators struggling to keep up with new data demands.
iPhone , Social Networking, proliferation of Smartphones
Mobile communications becoming medium of choice
Convenience, immediacy , personalisation & ubiquity
Already dubbed the “fourth screen” after television, cinema and pc.
First movie released straight to mobile – 28th September 09
Cellular services have become ubiquitous over the last 9 years.
Aircraft purchase decisions being made for >10 years
Source: GSM Association
Cellular Network Speeds Experiencing Exponential Growth
4G
Richer services
LTE
(Long Term Evolution)
3G
HSDPA/HSUPA
2G
2.5G
UMTS
W-CDMA
GSM / GPRS /
EDGE
~ 200 kb/s
Estimated bit rate
per user
~ 400 kb/s (~ 0,5-2 Mb/s)
(~ 5-20 Mb/s)
”ADSL”
The first 4G LTE networks are already being rolled out...
Source: Telenor
Mobile Devices: iPhones have changed
the ‘Rules of the Game’
Device
Example
Features
iPhone
Heavy focus on media and mobile internet
services. Browser usability is key strength
Offer camera phone, video and other services
Smart Phones
OS mirrors PC allowing productivity
applications. Often with QWERTY keyboard.
Touch screen models & hybrids increasing.
40% penetration expected in 2013. 80% of
new Blackberry subscribers have been noncorporate customers
Features
Phones
Converging on Smartphone's but less
powerful OS.
Targeted at consumer / lower cost
[Source Canalys - 2 Nov 09]
Handsets support multiple protocols: 2G, 2.5G, 3G, WiFi
By 2012, 25% of all handsets shipped in the US will be WiFi-enabled
Usage Patterns by Device
Low end
Per month: 0.03 GB
+ always on
N95 10x average user
High end
Per month: 0.1 GB
+ always on
IPhone 3x N95
Laptop
Per month: 0.5-20
GB
Laptop 10x IPhone
We’re still using significantly more data
on our laptops than on our handhelds
Source: Nokia Siemens Networks
Growth in Mobile Data Applications
Mobile Social Networking Usage – US
40%
35%
30%
25%
20%
15%
10%
5%
0%
13 - 17
65 Million Facebooks users Worldwide
Source: http://www.insidefacebook.com/2009/09/03/worldwide-facebook-mobileusage-up-300-in-last-12-months/
18 - 24
25 - 34
35 - 54
And they’re not all young!
Source: comScore
55+
Mobile Data Traffic via Handheld Device is Growing
Growth is driven by higher capacity networks, faster devices,
and burgeoning applications used across all age groups
Agenda
• What’s Happening on the Ground?
– Network Evolution
– Handset and Application Trends
• How Does This Translate to the Cabin?
• What’s the Real Story on Usage?
• What is the US missing?
GSM / GPRS network
WiFi or wired IP network
• Access through mobile phone and smartphone
(iPhone, Blackberry), laptop with GSM/GPRS
card
• Access through WiFi device (laptop or WiFi
PDA), Ethernet cable at seat, or seatback IFE
• Voice calls, texting (SMS), e-mail and limited
web-browsing (GPRS)
• “Live “ Internet Web browsing, VPN support,
VOIP, Video-conferencing, IPTV
Passenger Experience GSM Network
•
•
•
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•
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Passenger sees on-board network when
mobile phone is switched on in-flight
No sign-up required: passenger’s home GSM
provider has roaming agreements with onboard Service Provider
Airborne service appears as line item on
passenger’s bill from home GSM provider
Exactly the same process as when using
roaming abroad
Roaming prices set by home GSM provider
Roaming charges typically similar to
European users using their phones in North
America
Passenger Experience WiFi Network
•
•
•
•
Passenger turns on laptop while inflight
On board WiFi network appears:
passengers connect as they would
with a terrestrial WiFi network
Launching browser brings up the
Airline’s customised landing page
Passengers have access to Walled
Garden with free content:
–
–
–
–
–
–
–
–
–
–
Panasonic Baseline Content
News, Sports, Financials
Weather (destination city as default)
Current Flight Information (Time to
destination, etc.)
Travel Guide
Magazine Rack
Sample Airline-Specific Content
Airline Info
Airline Loyalty Program
Airline Partner Information
•
Passengers access the Internet by using their
ISP (or supported roaming provider credentials)
or pay with a credit card
•
Supports VPN, corporate e-mail, video
streaming, large downloads, etc.
Which Network Will be Accessed in the Air?
•
•
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Passenger behaviour in the air is influenced by their typical behaviour on
the ground - people use their mobile devices differently from how they use
their laptops
Mobile devices typically still first choice for making phone calls when on
the go; VOIP over laptop or mobile device more likely to be used at
home/in the office
Use of mobile device might depend on what network is available, the
speed, whether or not it has to be paid for, and the application
If a user wishes to use his/her mobile device to check email quickly
without logging onto the WiFi network, the GSM/GPRS network can be
accessed transparently
If a user wishes to use his/her mobile device or laptop to browse the
internet, synchronise Outlook mail, download attachments or use a data
intensive application, more likely to pay for a WiFi session
Passengers will want to use their devices and applications
in the air the same way they do on the ground
Do I Need both Cellular and WiFi on Board?
• Yes – if you want to offer the service for the widest possible
range of devices, to largest possible number of passengers
• VOIP not a full alternative to GSM voice
– Installation of SIP client required on WiFi Smartphone
– Phone number is anonymous
– Not used by the mainstream on WiFi handsets
• Texting (SMS) is still one the most used applications (including
Twitter)
• Blackberry email compression makes GPRS/EDGE a viable
technology both technically and commercially
• Transparency of use of cellular applications – just turn on the
phone, no log on required
Evolution of Airborne Cellular Networks
• New high speed cellular protocols (3G, 4G LTE) have
much higher data speeds than GSM, GPRS, EDGE
• Current on-board cellular networks support GSM, GPRS,
EDGE
• 2G, 3G and LTE will co-exist for years to come; devices
will support multiple protocols and be backward
compatible with the intelligence to select the appropriate
protocol
• Just as on the ground, if a device can’t get a 3G signal, it
will drop back to EDGE; if EDGE conditions are poor, it will
drop back to GPRS, and finally back to GSM
3G and 4G will eventually reach the cabin and will require suitable off-aircraft links
Agenda
• What’s Happening on the Ground?
– Network Evolution
– Handset and Application Trends
• How Does This Translate to the Cabin?
• What’s the Real Story on Usage?
• What is the US missing?
Continued growth in passenger usage
It took 10 months to
reach 100,000
passengers but only
another 10 months to
reach 1 million –
customer trial and
acceptance of the
service is increasing
Highest number of
active connections on
1 flight was 143 -Dubai to Manila on 12
Dec 2009
Its good to talk!
Over 11,000 calls made/received to equipped Emirates aircraft in Feb
2010
Longest call made from the aircraft was 65 minutes -- Dubai to Accra
on 11 Oct by an Etisalat customer
Highest number of calls made from the aircraft was 82 -- Bombay to
Dubai on Sept 20th 2009
One of the top passengers (in terms of usage), generated on average
over 2.5 hours of voice traffic on each of the 7 flights flown over the
past 6 months
But SMS popular too...
Highest number of SMS sent to/from the aircraft was 477 –
Casablanca to Dubai on 13 Feb. The highest number of SMS sent
from aircraft was 233 on that same flight.
Regional trends in usage
The Longer the Flight, the More Usage You’ll See
Revenue Split per Service – 2009
Revenue from GPRS traffic is the top driver with SMS traffic being second most
popular service
Over 40% of flights in 2009 were night flights or combination day/night flights -- the
use of non-voice services can be partially attributed to the high percentage of night
flights
Passengers are Using it Regularly
Examples of traffic from a single user
Driving Cellular Revenue Streams
In service experiences prove marketing and
passenger awareness is one of the primary drivers for
revenue.
Perception that cellular phones cannot be used on aircraft
Many cellular devices placed in bags and stored in overhead bin.
Telco involvement is a key marketing ingredient.
Direct subscriber marketing campaigns
Location based marketing
A trusted source of information
Research shows over 60% passengers are unaware /
did not see the in flight promotional video
Raising Passenger Awareness
Print Media
Gate Giveaways
News paper bindings
FAQ on website
Pocket Guide
Gate
banner
stands
Integrated
Messages on IFE
Monthly bill envelope
The Importance of Marketing
Blue diamonds depict mobile phones
attaching to the on board cellular network.
22 mobiles attach at
beginning of flight
13 mobiles attached
post broadcast
marketing message
on IFE
Using IFE to Promote the Service
Agenda
• What’s Happening on the Ground?
– Network Evolution
– Handset and Application Trends
• How Does This Translate to the Cabin?
• What’s the Real Story on Usage?
• What is the US missing?
US Cellular Subscribers
Operator
GSM Support
Market Share
Verizon
CDMA
32%
AT&T
GSM 1900/850MHz
30%
Sprint
CDMA
16.6%
T-Mobile USA
GSM 1900MHz
11.6%
Onboard GSM network operates at 1800 MHz – it does not currently support CDMA
Handsets need to support both GSM and 1800 MHz (dual, tri-, or quad-band)
Subscriber also needs GSM international roaming as part of their contract
Verizon subscribers can use the AeroMobile service through a service provided by
their partner Vodafone Netherlands called CDMA2GSM
Sprint sells / leases GSM phones for international travel and offers dual mode
CDMA/GSM handsets
SMS Usage - US
• Americans send 4.1 billion SMS text
messages every day
• On average, Americans send and
receive twice as many text messages
as phone calls per month
• Surveys show following features and
considerations to be most important
among cell phone buyers:
–
–
–
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Text messaging: 73%
Camera: 67%
Ability to access the mobile Internet: 61%
Music features: 34%
Video: 33%
% of age group using SMS in US
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
What are Passengers on US Airlines Missing?
• The ability to send/receive SMS, use GPRS email without having to pay for a WiFi session
• The choice of being able to make and receive
calls while on board
• The reassurance of being connected through
their personal mobile phone
Mary Kirby 19/3/10: “...even I've thrown down a few quid to a make a call
in-flight (esp on a long-haul flight). Some things, like telling your 5-year old
that you love her before bedtime, are simply worth the money.”
Conclusions
• Throughput speeds of terrestrial cellular networks are
rivalling WiFi networks
• Mobile devices are also evolving with multiple protocols
that dynamically select the most appropriate
• Passengers want to be able to use the same
applications in the air that they use on the ground
• Having both cellular and WiFi networks on board the
aircraft best emulates the experience a passenger has
on the ground
• Airlines need to consider future trends and applications
when making a decision for aircraft that will be in service
for 10+ years
[email protected]
Mobile: +44 7943 804 047
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