Windows Phone Thoughts: Boeing Abandons Connexion High-Speed Internet Service

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Friday, August 18, 2006

Boeing Abandons Connexion High-Speed Internet Service

Posted by Ekkie Tepsupornchai in "NEWS" @ 08:45 AM

http://news.yahoo.com/s/afp/2006081...tinternetboeing

"US aerospace giant Boeing Co. said it was abandoning its Connexion unit providing high-speed Internet service on planes after only a handful of airlines signed up. 'Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing,' Boeing chief executive Jim McNerney said in a statement Thursday. 'Regrettably, the market for this service has not materialized as had been expected. We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing,' he said."

This is not a huge shock if you've followed the progress of Connexion and understood the challenges involved. At $30 a flight or $10 for every 30 minutes of use, it was mostly geared towards business travelers and even for them, would typically only make sense for longer flights. Of course, the plan had little chance of succeeding because very few airlines actually bought into the plan, so most consumers were never given the opportunity to participate. But can you blame the airlines?

According to Ars Technica, after the FCC lifted its ban on wireless devices while in flight, the FAA refused to do the same with exception to those devices proven safe. That doesn't sound so bad except that the process of proving a device safe was left as the time and expense responsibility of each airline. All in all, I do believe that wireless internet connectivity has a future with the airlines but cost and regulatory obstacles need to be cleared.

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