Build It and They Will Come? The In-Flight Broadband Market

While availability is now high, paid usage from the service has been extremely low, In-Stat noted. "In-flight broadband is now at the stage of market development where it must prove its sustainability through the ability to generate revenues," In-Stat said in a release. Frank Dickson, vice president of research indicated that the per-connect fee is expected to deteriorate as lower connect fees are negotiated for roaming and billing partner subscribers. In fact, connect fees are expected to decline 24 percent from 2010 to 2014, while in-flight broadband connects will exceed 76 million in 2012.

In an effort to increase Internet revenues, providers such as Aircell are beginning to look at the opportunity to provide video, Direct Broadcast Satellite (DBS) and Internet-based video, In-Stat said. DBS revenues are expected to be more than three times the size of Internet video in 2014.