BOEING TO PROVIDE HIGH-SPEED INTERNET SERVICE TO AIRCRAFT
American, Delta and United airlines will join Boeing to provide airline passengers and operators worldwide with 2-way broadband connectivity to Internet, corporate intranets, e-mail, live TV and entertainment and other services while in flight, said Scott Carson, pres. of Connexion by Boeing, at joint news conference Wed. Under agreement, venture will be owned jointly by Boeing and the 3 airlines, with Boeing as major shareholder with overall management responsibility and airlines participating equally. Overall value of project and participants’ shares weren’t disclosed.
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Upon signing definitive agreement, expected in 5-6 months, Boeing and airlines each will contribute funding, certain intellectual property and other assets, Carson said. Delta Air Lines Senior Vp Ray Valeika said 3 airlines would equip total of 1,500 aircraft with high-speed broadband Internet connectivity service, which will retain Connexion by Boeing name. First installation is expected in 2nd half of 2002, Carson said. Upon receipt of licenses from FCC and other agencies, service will be offered on travel routes across N. America. Once Connexion by Boeing receives additional international approvals, it’s expected to expand to Europe in late 2002, Carson said.
Connexion by Boeing will deliver high data-rate connectivity directly to airline seats and will provide airline personnel with information that will enhance operational efficiency. Carson said the service currently was available to private business jet market in U.S.. As service matures it can be extended to additional markets such as commercial and leisure cruise ships and oil exploration platforms. To provide Internet access via satellite, Boeing signed strategic agreements with Loral Skynet, which will be used for N. Atlantic flights, and GE. Screaming Media will provide and integrate licensed content, including worldwide, national and local news, sports and features.
Customers may subscribe to Connexion by Boeing service to access Internet and data services from any seat in aircraft, Boeing said. Subscribers will plug their devices into Ethernet connection at seat and service will direct them to Connexion by Boeing portal. Fees can be charged to corporate accounts or to credit cards. Carson said price would be similar to in-flight cellphone or 1-800 dial-up service and cost about $20 per hour. All passengers on equipped aircraft will be able to use 5 Mbps ingoing and 1 Mbps outgoing connection simultaneously. Speed will depend on number of Internet users on flight, but company promised minimum Internet connection equivalent to 56K modem.