New FAA rules may boost flyers' Wi-Fi use

The FAA is loosening its rules on the use of personal electronic devices (PEDs) onboard commercial passenger aircraft, which in turn might spur on increasing demand for in-flight Wi-Fi.

The FAA said last week it has determined that airlines can safely expand passenger use of PEDs during all phases of flight, and the agency said it is immediately providing the airlines with implementation guidance.

Due to differences among fleets and operations, the FAA said, implementation will vary among airlines, but the agency expects many carriers will prove to the FAA that their planes allow passengers to safely use their devices in airplane mode, gate-to-gate, by the end of the year. TechCrunch reports that Delta and JetBlue are the first airlines to provide such proof.

According to research firm IHS, the new rules may encourage customers to take advantage of the growing number of commercial aircraft providing either Wi-Fi or cellular connectivity. That number will reach 4,048 by the end of 2013, representing 21% of the global fleet—rising to 50% by 2022. Of aircraft offering wireless service in 2013, the firm says, 75% offer Wi-Fi-only service—in the U.S., in-flight cellular service is prohibited by FCC rules.

Heath Lockett, senior analyst for aerospace at IHS, says that the rising availability of in-flight wireless is occurring as the FAA moves to loosen its rules. “The proportion of passengers actually connecting to wireless services on board is still very low, average in the single-digit percentages,” he said. “The great challenge for airlines now is to inform passengers of the services they offer and to get them to pay for access.”

It should be noted that even under the new rules, airlines are unlikely to be willing or able to offer Wi-Fi service on the ground. In-flight Wi-Fi operates on an air-to-ground link that won't work when a plane is on the ground (although theoretically tarmac-bound passengers may be within range of an airport's Wi-Fi system), and crew members won't turn it on until a plane reaches an altitude of 10,000 feet.

Nevertheless, the FAA may be assisting airlines with Wi-Fi marketing efforts, on the theory that any publicity is good publicity. As Lockett at IHS puts it, “With the change in FAA rules garnering major attention in the media, the airlines now have a chance to get their message out to U.S. air travelers.”

IHS says that as aircraft Wi-Fi gains popularity and bandwidth demand grows, vendors might implement two-tiered system, in which passengers can opt for a free or low-cost low-bandwidth connection or pay a premium for a guaranteed high-speed connection. The firm notes that when ViaSat launches its Exede service on JetBlue’s fleet later this year, it employ such an approach, offering its promised its promised 12-Mb/s service for a premium.

The FAA said it based its decision on loosening the PED rules on input from a group of experts that included representatives from the airlines, aviation manufacturers, passengers, pilots, flight attendants, and the mobile technology industry.

You can download the 222-page “Report from the Portable Electronic Devices Aviation Rulemaking Committee to the Federal Aviation Administration” here. In includes an appendix with survey results on customers' interest in purchasing in-flight Wi-Fi service. 57% of passengers are interested in purchasing the service; 34% are not. Unsurprisingly, passengers on longer flights are more interested in purchasing the service. Perhaps more surprisingly, their interest in purchasing the service does not seem to depend on whether they are travelling for business or pleasure.