Airfone Seeks Quick Auction to Get Broadband on Commercial Flights
Verizon Airfone said Mon. if the FCC holds an auction of 800 MHz spectrum for air-to-ground (ATG) use in early 2006, the company can offer inflight wireless Internet access in 2007. Airfone turned up the heat on the FCC to set an auction date after the Commission released Fri. an order tying up the loose ends that had to be addressed before an auction could take place (CD Dec 12 p1).
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Sources said the FCC has hinted an auction is possible in Q1 2006, but the likelihood of such an auction remains unclear. An FCC spokesperson said the Wireless Bureau hasn’t committed to a time. The FCC usually takes 4-6 months to set up and hold an auction.
Airfone leads the list of candidates for the spectrum, though other contenders led by AirCell, Boeing and Space Data, have also indicated an interest. In a recent ex parte filing, Continental Airlines urged the FCC to take steps to hold an auction, noting that the Commission approved its original ATG order in Dec. 2004.
“We urge the FCC to move as quickly as possible to auction new licenses in the 800 MHz band,” said Bill Pallone, pres. of Airfone. He told us he hopes the FCC will schedule an auction as early as April. The message from Airfone has been consistent, he said: “There’s no advantage to waiting. It doesn’t do anybody any good. What’s lost is time opportunity.” While FCC rules allow companies to bid on overlapping licenses, Pallone said interference concerns mean that almost all bids probably will be for single-company exclusive licenses. “We'll bid only for exclusive licenses,” he said. ‘I like our chances. I think we have a very good package put together.” Pallone also predicted broadband on airplanes will prove popular, with an average 15-20 users a flight and popularity growing as users see the technology works.
Airfone hasn’t published prices for service, but they will be in line with charges at hotels for Internet service or at terrestrial hotspots, Pallone said: “People will be pretty surprised at how inexpensive it will be.” Airfone also plans to strike deals with other carriers so their wireless data customers can roam on the Airfone network.
Airfone has been testing wireless data on airliners since Sept. 2004, with speeds up to 2.4 Mbps. In June, Airfone received permission from the FAA to install cabin equipment to allow the use of Wi-Fi equipment on planes. Airfone said the service will allow everything from checking e-mail to streaming video and even making VoIP calls. The system is easy to install: “Once Verizon Airfone’s broadband network is in place, airlines and general aviation operators only need the addition of an avionics box, a wireless access point and a directional antenna to begin offering wireless broadband services to their passengers.”