OnAir was chosen for A380 service, with the initial rollout--especially for international flights--using the 64 Kbps Inmarsat satellite offering, which is too paltry for anything but limited text communication. When the recently launched Pacific satellite is active--which may take up to a year--OnAir and Qantas can upgrade to the luxurious nearly 500 Kbps per channel service.

The head of OnAir is pushing some mighty serious horsehockey, however, when he says as quoted by Flightglobal that he "is confident that once the full service is up and running, passengers will be able to access the Internet 'in exactly the same way as they can on the ground.'" That may be the case in terms of access, but not in terms of cost. The cost will be enormously high unless OnAir has a magic deal with Inmarsat that's previously undisclosed. I suspect a per MB charge will be in effect that will discourage much use. Calls and texting could be carried over the same system, of course.

Qantas plans to continue to work with Aeromobile for domestic service, with calls and texting available, on their Boeing 767-300s and Airbus A330-200s, Flightglobal reports. Aeromobile has plans to launch a full Internet service later this year using cached and live content. [link via Fabio Zambelli]

Dan described the Managed Hosting and colocation sector as “on fire” The sector is humming – incredible growth, outstanding execution, blowing away expectations. I must say, looking back 5 years ago after the tech bubble collapse, I can’t believe how strong the sector bounced back from those very difficult times.

His presentation was focused on a future, and a longer view for the industry. The HTS conference is packed this year with the largest attendance of Datacenter owners, Managed hosting and colocation companies ever to attend this conference.

• Demand steady or increasing in all markets, driven largely by capex constraints and greater awareness and choices.
• Supply is growing more slowly in the past 18 months as the credit crunch has hurt the ability of providers to expand ( it is very hard to get mortgages, loans only on new datacenter projects). Expansion build-out of existing shells is occurring, but very little on spec.
• Demand Growth of 15% in 2008. (Steady and increasing in the out years) However after supply growth peaked at 7.5% in 2007 supply growth now has slowed to 5%
• Dan believes that supply growth will pick back up again in 2011

Conclusions – supply is tight, demand is high and growing…this very good news for the industry.

• Some other trends:
  • The green initiatives are more than just a trend as datacenter owners who don’t figure out how to maximize power efficiency will be painted as villains.
  • Internet traffic and services consumption are linked as Internet traffic growth has been doubling every year (2005-2007)
  • Prediction: 2011 -2012 - internet traffic will get an exaflood – it is coming with a new breed of applications (set to boxes HD Video, games, etc.) that will drive new traffic patterns. Growth driven by consumer broadband + applications (HD video) applications, which in turn will drive demand for Managed Hosting / Colocation Services…

Managed Hosting Services Highlights

• Incredibly fast growth 30%+
• $10 Billion worldwide revenue by end of 2008
• We’ll keep growth pace until at least 2011
• Good news, Dan believes that fears about slowdown in growth are wildly overblown.

Why is managed hosting growing so fast?

• Demographic shifts – new breed of IT employees that embrace outsourcing
• Growth in internet applications (SaaS) The acceptance and growth of browser based applications has been enormous!
• Ambiguity between web hosting and managed hosting has turned positive

Dan’s Key success factors managed hosting and services

• High margin services – and not too many – it is so tempting in our day to day business when a customer comes along and wants to come and give us money for a unique on-off service… at this point the answer has to be no – or do it through a partner.
• High level of support delivery is critical – don’t cut pay in support people or outsource support to save a nickel… what you are selling is support. Keep doing this well or you will head into a bad place… just as examples in retail like Home Depot and others who have struggled with customer service challenges – the whole business starts to slide into the toilet… High levels of support delivers a strong word of mouth buying cycle

Final thoughts, the industry is healthy and will continue to thrive. Customers are looking for the one stop shop, one company that is a trusted advisor to the customer. As customers place more eggs in the Managed Service bucket, the industry will need to tighten-up those SLA’s. Today some parts of the industry have been getting away with loose SLA’s… as customers get more sophisticated and have more on the line, they will become more demanding and require robust multi-component SLAs and back-it –up.

OnAir has so far tested their calling/texting-only service on two aircraft--one operated by Air France, one by TAP Portugal--even though RyanAir announced plans that its planes would started being unwired with the service by late 2007. Still no word on that fleet progress.

Qantas will apparently launch cached Web browsing and limited Web email (probably through a proxy) along with instant messaging, with full Internet service coming "later in 2009." This is clearly due to a lack of satellite coverage that was just remediated a few weeks ago (see below). The first plane with limited service, a new A380, should be in flight 20-October-2008.

The Morning Herald seems to overstate the importance and scope of a complaint filed by the union representing American Airlines' flight attendants. The detailed coverage in the U.S. had more to do with the potential for issues, and likely attendants lack of interest in policing yet another media on the plane. Filtering doesn't work, the attendants probably already know, and this may just be a negotiating point with the airline.

On why Qantas is waiting until late 2009? This requires unwinding how OnAir gets its signal.

Aeromobile and OnAir both rely on Inmarsat satellites for their service. Both companies had several years ago staked their futures on the fourth-generation network Inmarsat was to inaugurate with three satellites that would use beamforming to allow precise delivery of nearly 500 Kbps per receiver, with hundreds or thousands of regions being able to be targeted from a single satellite. Inmarsat's third-gen network--don't confuse this with 3G cellular ground-based networks--can deliver about 64 Kbps per channel.

Now, unfortunately, Inmarsat was three years late on launching its trans-Pacific bird. While the company claims 85 percent coverage of the earth and 98 percent coverage of population, there's a big gap over the Pacific that also prevents them from having good overlap between the U.S. and Japan/China/Korea, as well as the southern Pacific, covering Australia. Since the biggest market for long-haul flights would likely be Australia, Japan, and China, traveling trans-Pacific or trans-hemispheric routes, that gap is rather large.

Aeromobile opted to build out a service, deployed only by Emirates airline as far as I can tell, that uses the 3G service since it was available, and most necessary equipment is already installed on most over-water planes. OnAir was waiting for 4G, which has necessitated a long wait, but allowed them to launch in Europe with a seemingly next-generation service. Given that OnAir is controlled by an airline-owned integration firm, SITA, and by Airbus, they're not going anywhere.

Inmarsat finally lofted its third satellite on Baikonur Cosmodrome in Kazakhstan on 19-August-2008, and the launch and separation was reported as successful. Previously, the company has needed up to a year to verify and deploy its 4G satellites. (You can read extremely close coverage of the launch at a Web site devoted to space enthusiasm.)

However, the dirty little secret about Inmarsat's BGAN is that it costs a fortune to heft bandwidth across it. Thus, in-flight broadband over BGAN, if it's ever available, is going to be changed on an extremely high per-MB rate. None of the providers want to say this. This is in contrast to Row 44 (and, once, Connexion by Boeing), which relies on leased Ku-band transponders where they can fix costs and they require high volumes to keep per-bit costs efffectively low.

OnAir's launch of calling on Air France's service involves paying a few euros per minute for calls, which might help you understand what data costs could ultimately run.

The panel will discuss fourth-generation (4G) networks, including both LTE and WiMax, and discuss what these networks might deliver, as well as how Wi-Fi networks fit into this future.

One of the organizers asked if I'd solicit questions--you can post them below--which they'll try to ask during the panel. The group would then write up responses which could posted in turn here.

The powerhouse that is Kevin Werbach, a professor at The Wharton School, is moderating the event. Werbach has been part of interesting thinking about spectrum for many years, a former editor of Release 1.0, and a former FCC staffer. He'll share the stage with a fairly high-powered crowd, including AT&T's enterprise architect for mobility, the president of NAC, and senior people from Comcast and Sprint Xohm.

The event is part of the Mid-Atlantic Chapter series called MobileMonday, an interesting business group that's trying to provoke discussion and development around mobile technology and access. This particular event is sponsored by local business development organization Select Greater Philadelphia.

Espin references Joe Sharkey's excellent column on in-flight calling in Sunday's New York Times: Sharkey, a veteran travel writer, who survived a mid-air collision over the Brazilian Amazon a few years ago, looks at varying attitudes about calls made during flights. He quotes Aircell's Jack Blumenstein saying what I've telling folks for months: Aircell has a lot of techniques to block VoIP calls already, and "as we identify new ways that people are trying to do voice calls on the airplane, we just kind of zero in and knock those off." Many geeks have assumed Aircell is a bunch of unsavvy folks who wouldn't be able to figure out how to disrupt their clever workarounds for making VoIP. (I keep noting that introducing jitter for suspicious data connections wouldn't disrupt legitimate applications, but would destroy VoIP call quality.)