In flight Connectivity Lars Ringertz Head of Marketing Aeronautical Business

1. In flight Connectivity Lars Ringertz Head of Marketing Aeronautical Business

2. Satellite LEO L-band GEO L-Band GEO Ku-band UHF Voice/ Data VHF/HF ACARS Datalink and Voice Anywhere Over land*) Gatelink WiFi GPRS UMTS On the ground *) and within line of sight How to get information on and of an aircraft ARINC SITA Inmarsat Iridium AirCell Verizon Airfone

3. 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Twenty years of passenger connectivity GSM Broadband Email Live TV Fax New and Sports Ticker Satellite Telephone Telephone System

4. Cabin Connectivity - Many False Starts WHY?

5. (Mbit/s) Limited Internet Access More “Live TV” Streaming Movies Streamed News Unlimited Internet Operational Applications Bandwidth Requirement Safety Services Batched News VPN Operational Data feed Circuit Switched Voice Mobile Phone GPRS/UMTS Less Email Instant Messaging (Kbit/s) End user willingness to pay Less More Communication vs. willingness to pay

6. What service should I provide? • Only because it can be done technically doesn’t mean it makes sense.. • The key questions: • What are you trying to achieve? • Competitive advantage (for how long) or a me too? • What do you want to provide? • What do you need to provide? • When and where does it make sense to provide the service? • Route • Aircraft type • Demographics • When it brings VALUE and is cost effective

7. In-flight connectivity positioning • Direct (individual) • Enabling the passengers own device • Less control little branding • General connectivity • Internet access • GSM over pico cell • GPRS data • DBS TV • Streamed TV Communication Entertainment • Seatback messaging • Cashed WEB browsing • Seatback phone • News Ticker • Batched News • Live service updates • Discrete (communal) • System providing service to the passenger • Enhancing the passenger experience • Maintain control and branding

8. More (Mbit/s) Streaming Movies Streamed News Bandwidth Requirement Batched News Internet/ VPN Voice Calls Email Text Messaging Instant Messaging Less (Kbit/s) (30 minutes) (Month/ Week) (<15 minutes) (minutes) (seconds) (m/s) Less Time Critical More What should I use connectivity for? Bandwidth Requirement vs Acceptable Delay in delivery Pax willingness to pay

9. Passenger connectivity solutions Disclaimer: All data should be verified with respective service provider

10. The new Connexions (subject to change) • SkyLink • SES, Ratech, Viasat, LHT • At the moment regional business aviation • Panasonic • Intelsat, Starling, iDirect, Panasonic, Boingo • Loose alliance of companies under the Panasonic brand • Planning to use existing Connexion equipment • Regional Coverage • Airstellar • Intelsat, Starling, iDirect, Miltope, Worldcell • Loose alliance of companies • Planning to use Connexion equipment • Regional Coverage • Row44 • Hughes, Thinkcom • New installations • Have launch customer (TBC) • Regional Coverage • Vodafone & T-Mobile the dark horse…. • Viasat, SES

11. DVB Ku band (Mbit/s) Limited Internet Access More SwiftBroadband “Live TV” Streamed News Streaming Movies Unlimited Internet Operational Applications Bandwidth Requirement Aero H/H+ Swift64 Safety Services Batched News VPN Operational Data feed Circuit Switched Voice Mobile Phone GPRS/UMTS Less Email Instant Messaging (Kbit/s) End user willingness to pay Less More Technology and willingness to pay

12. What are the real differences? • Core technology/ usage • Bandwidth/data rate • Cost, size and weight of aircraft hardware • Cost of airtime • Geographical coverage • The scalability of the solution • The longevity of the system • The applications supported

13. SwiftBroadband Early Entry SwiftBroadband Swift64 MPDS Mini-M Swift64 Aero I Aero L Aero H+ Aero H 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Inmarsat Aeronautical Timeline Voice & ISDN and up to 432kbps packet data Voice & 64kbps ISDN Data Voice & 9.6kbps Data Cost

14. SwiftBroadband • Natural extension to Swift64 and Classic Aero Services • More affordable service, packet based service • Higher native speeds up to 432 kbps / channel (High Gain Antenna) • Up to two channels per installation • Data compression (TCP/IP) acceleration to further enhance performance • Scalable solution = capacity as and when you need it !!

15. Airtime Distributors Aeronautical Service Providers Avionic and Antenna Manufacturers The Inmarsat Business Model

16. Building the business case • Be realistic with projections • Check your assumptions • Acid test everything • Identify where the real benefits from connectivity lies • Utilise existing equipment to provide an innovative service offering • Avoid retrofit when possible • Creative ways of strengthening the business case • Identify additional stakeholders • What more can we do with connectivity?

17. Safety Services The New Business Case Cockpit Cabin Operations ROI Non Safety Cabin Operations Passenger Connectivity ACARS EFB EHM Wx U/S Reporting Credit Card Transactions FF Info Pax Emerg Email / VPN Internet GSM GPRS

18. The history has taught us • It is possible to provide in flight connectivity • To date no passenger connectivity business case have stood up on it’s own • Passenger demand has been much lower than expected • ROI have been non existent • Concepts have come and gone • Solution providers have come and gone • The next great solution is just around the corner… • To date in flight connectivity have been a solution looking for a problem!

19. Total Flight Scenario Satellite Email GSM phone Seatback phone Satellite News & Sports ticker Batched news Satellite Internet Access Satellite Maintenance info Defects Credit Card verification Operational Info WiFi/ WiMAX Video, News On board server content FF DB PAX preferences WiFi/ WiMAX Reports & logs Usage data Inventory At the gate/ taxing At the gate/ taxing

20. May connectivity be with you, and may you use it wisely May the force be with you, and may you use it wisely