Row 44 CEO John Guidon in his own words

John Guidon, CEO and co-founder of Row 44, has written a short op-ed arguing the case for airlines to install a high-bandwidth solution for in-flight connectivity - even if that bandwidth is more than their current model requires.

Southwest Row 44 antenna.jpg

John’s argument is that the growing demand for bandwidth-hungry services (live international TV, terrestrial-speed web browsing, downloadable audio and graphic-intensive games) will seriously strain many of the current low-bandwidth offerings within a couple of years.

Row 44, which offers in-flight connectivity over a satellite link, is currently being tested by Alaska Airlines and Southwest Airlines.

Here is John in his own words:

The case for high-bandwidth, future-ready in-flight broadband

By John Guidon

 

We are past the point of airlines deciding whether or not to install passenger connectivity services on their fleets. Passenger demand and airline revenue potential have made in-flight broadband a must-have offering for airlines around the world.

 

A key decision now facing many airlines is whether to install a low-bandwidth, limited-service solution–supporting mobile phone usage only, for example–or a true broadband system capable of delivering high-speed Internet, TV and other broadband services.

 

We argue, from an admittedly subjective perch, that installing a full in-flight-broadband solution is the smart play for airlines–because it will deliver a faster return on investment at far lower risk of future obsolescence than a low-bandwidth offering.

 

Low bandwidth equals lower profit and higher risk

Let’s compare a few differences in the business models of the low-bandwidth, limited-service providers with full-broadband solutions like Row 44′s.

 

One limited-service provider’s website proclaims the service will provide “full voice and SMS services from launch date.” That’s terrific–but it means that after installing the system, your aircraft will have just one revenue source for the plane: mobile phone service.

 

This raises several questions:

 

1.   What happens if some countries along your airline’s routes outlaw mobile phone calls in-flight?

Assuming the law allows the passenger to even turn on their mobile phone, you will forfeit the voice portion of the revenue generated from this service, having to rely only on SMS text messaging. Keep in mind that passengers may generate more revenue for your airline through voice calls than by SMS texting.

 

2.   What happens when your passengers demand bandwidth-hungry services like web browsing and live international television?

You will eventually be pressed by passengers to provide a broadband solution; it is only a matter of time. The question is: If installing true broadband service is inevitable in the next three years or so, why risk incurring the lost opportunity costs associated with lower-bandwidth services, and generating passenger frustration and disloyalty–as well as all the associated switching costs resulting from the inevitable upgrade to true broadband?

 

3.   What happens when revenue-generating or cost-cutting applications become available, but you don’t have the bandwidth to take advantage of them?

You will forego those opportunities, and possibly even lose passengers to your broadband-equipped competitors.

Outfitting your fleet with a low-bandwidth, limited-service offering is a higher-risk, counterproductive strategy that will ultimately cost your airline far more–a cost of time, money, competitive advantage, and possibly even passenger loyalty.

 

Satellite-based in-flight-broadband provider Row 44, by contrast, has developed a true broadband experience for the passenger and crew–a wireless hotspot in the sky.

 

Unlike the limited-bandwidth systems, which promise “full voice and SMS services from launch date,” Row 44′s system delivers–also from launch date–revenue-generating services including high-speed web browsing, live international television, personal and corporate email, stored video and audio with live updates, online shopping services supported by real-time credit card authorizations, full mobile phone usage (where permitted), and a host of cost-reducing airline operations services for cockpit and crew.

 

The Row 44 system is simply the most expandable and future-proof in-flight-broadband system available–and a system whose one-time setup costs pay for themselves within a short time frame, and generate a substantial ROI for years to come.

 

In a 2008 MultiMedia Intelligence report, analyst Amy Cravens notes that limited-service offerings from “AeroMobile and OnAir are betting that voice will be the winning service offering, making voice communications the foundation of their offering.”

 

Can you afford to make that same bet?

, , , , , , , , , , ,

11 Responses to Row 44 CEO John Guidon in his own words

  1. Matt April 23, 2009 at 10:20 am #

    It seems like this could be a double-edged sword. Broadband offerings (or even lower bandwidth) encourages passengers to start lugging their laptops and power supplies with them, at a considerable aggregate weight. I would assume they’ve done the math, but an extra several dozen (or more) laptops on board with all the accoutrements doesn’t seem negligible. You could easily extrapolate that to full widebodies over the ocean and look at considerable weight. All that aside, I’m happy to have access on board! :)

  2. Ludwig von Hapsburg XII "Stinky" April 23, 2009 at 10:57 am #

    Trying to talk sense into airlines is about as fruitful as telling Liberace to tone down the sequin outfits. It just ain’t gonna happen.

    When was the last time an airline impressed you? I can tell you mine…my last flight on United actually left within 1 hour of the scheduled departure.

    I am still not buying stock.

  3. Mary Kirby April 23, 2009 at 11:03 am #

    I’m about to post a video blog that addresses United somewhat (fat passengers and how to satisfy the back of the bus in general). I have been exceedingly disappointed by the carrier’s service in recent years.

  4. Adam April 23, 2009 at 11:15 am #

    Matt I think your argument is mostly mute.

    I can not remember the last time I flew WITHOUT my laptop. Regardless of in-flight WiFi, essentially EVERYONE traveling for business will carry their laptop. And even on vacation, WiFi is common at hotels etc. I know I’ve personally brought my laptop and power supply with me on vacation, even if I didn’t end up using it for more than looking up prices/directions/whatever.

  5. Ludwig von Hapsburg XII "Stinky" April 23, 2009 at 12:00 pm #

    Adam…

    Its “moot” not “mute.” Since you carry your laptop with you everywhere you go, option the “thesaurus” fuction.

    RWG-I am lucky enough to live in Chicago and am planning a play date with some friends. We’re going to ORD with bags of popcorn and soda, and will watch UA Customer Disservice call out the people needing two seats. This will be worth video-recording!

  6. Mary Kirby April 23, 2009 at 12:05 pm #

    If you get some video, I’d love to see it!

  7. Anne December 6, 2010 at 11:10 pm #

    I always was interested in this subject and still am, thanks for posting .

  8. Video Exercise To Lose Belly Fat August 23, 2013 at 12:09 pm #

    It is really a great and useful piece of information. I am happy that you just shared this useful information with us.
    Please keep us informed like this. Thank you
    for sharing.

  9. twitter followers September 26, 2013 at 1:12 pm #

    I got this site from my friend who informed me regarding this web
    page and now this time I am visiting this site and reading very informative
    posts at this time. twitter followers in facebook Secure and Easy from biggest facebook likes service provider.

    buy twitter followers cheap Absolutely no Security password along with
    Without Subsequent.

  10. twitter followers October 10, 2013 at 11:40 am #

    I blog often and I truly appreciate your information.
    This article has really peaked my interest.
    I will bookmark your blog and keep checking for new information about once per week.

    I subscribed to your Feed too. Maybe you have calmly wondered how you can twitter followers on
    facebook?

  11. buy facebook fans October 28, 2013 at 5:18 pm #

    Hi, i read your blog from time to time and i own a similar one
    and i was just curious if you get a lot of spam feedback?
    If so how do you stop it, any plugin or anything you can
    suggest? I get so much lately it’s driving me mad so any support is very much appreciated.

    buy facebook fans aid in improving customer base, search engine
    rankings, etc .
    If you want to buy facebook fans you should definitely keep the facebook profile up to date.

    A good way to buy likes should be to have stars attract a new write-up for you.

Leave a Reply