Business models for aeronautical in flight telecom services

Article type: Research Article

Authors: De Sanctis, Massimo

Affiliations: Satellite, Business Development Manager, Ericsson Telecomunicazioni SpA, Via Anagnina 203, 00040 Rome, Italy Phone: +39 335 222908; Fax: +39 06 7258 2106; E-mail: Massimo.DeSanctis@ericsson.com

Abstract: The introduction of telecommunication services on commercial flights for passengers and airline crew requires a careful balance in the value chain in order to offer services at reasonable prices, and thereby speed up the market acceptance. Thus, a comprehensive business model is needed that addresses all types of services, licensing, billing, roles of the interested parties, and the relation of the business model to system architecture. Services like Web browsing and E-mail can be offered without licensing issues. Mobile telephony and short message service (SMS) require licensing, and most likely, both the involvement of mobile operators and roaming agreements, for rapid market expansion. This paper describes the different actors likely to participate in the business model. Of two alternative business models, one is preferred that may simplify system architecture, enabling operators to maintain virtually unchanged networks. The impact of the preferred business model on the billing system is described in some detail.

Journal: Space Communications, vol. 19, no. 3-4, pp. 121-127, 2004