U.S. Department of Transportation

Sixth Meeting of the Advisory Committee for Aviation Consumer Protection

Presentation of Kevin Rogers 29 th October 2014

### AeroMobile Communications Ltd

• Providing in

- flight mobile connectivity systems since March 2008

• UK subsidiary of Panasonic Avionics Corporation (Lake Forest, CA)

• IMC equipment is certified airworthy by FAA and EASA

• Boeing and Airbus offer the system on a growing number of aircraft types as a catalogue item

SMS text Voice (calls, call alerts, voicemail) Mobile data & emails

### Business overview

• 13 airlines currently provide our IMC offering

• Many airlines have chosen not to offer voice

– disabled by default in the ground network

• 269 aircraft, 500+ flights daily

• 270 roaming partners, including AT&T and T

Mobile

### How it works

Satellites

Crew control panel allows management of services To AeroMobile ground network Cabin leaky feeder antenna provides uniform coverage throughout the aircraft Satellite antenna for off aircraft communications IMC Hardware Components

• The IMC system: GSM picocell, CRFMU and leeky feeder antenna (connected via satellite).

### How it works, Continued.

• Operates only at cruise altitude (automatically disabled below cruise altitude).

• Airline chooses which IMC applications to enable (SMS text, email/data, voice); crew control panel provides the crew with “on

- off” override for all services.

• The system is operated according to airline procedures and licenses approved in the airline’s country of origin.

### International Passenger access to IMC

• Offering is available primarily on long

- haul international flights of foreign airlines (there are no standards for U.S. domestic IMC operations)

• An international roaming model

– akin to using your mobile device overseas

• The passenger’s subscription must be “roaming enabled”

• Passenger’s wireless provider must have a roaming agreement with AeroMobile

• Prices are set and charged by the passenger’s wireless service providerInternational Passenger access to IMC, Continued

• Voice is only one component of the IMC offering

• Airlines can limit IMC to text and data applications only

– and many do so

• Vast majority of IMC use is text and data applications

• IMC significantly enhances the passenger experience

• IMC provides a familiar, cost

- effective alternative to Wi

- Fi connectivity

• FAA study on cell phone usage confirmed there have been no adverse impacts of voice service where offered

– this is still accurate

### IMC and Consumer Protection Concerns

• IMC is a complementary service to Wi

- Fi and enables the same types of real

- time connectivity used today on the ground and in the air

• Airlines add this amenity because it enhances the passenger experience

• Cabin crews are well

- trained on use of the system

• Passengers are generally provided with information about IMC:

• In advance of the flight (through advertising and gate banners)

• During the flight (through announcements and information cards)IMC and Consumer Protection Concerns, Continued

• When accessing IMC (through on

- screen messages)

• By their home operator at least through a “Welcome SMS”

• The IMC offering is self regulating

• Usage on night flights is much lower than day flights

• Cabin crew can disable/enable any text, data and/or voice services

• The airline can, and does, choose to deactivate voice

• AeroMobile is aware of no reported incidents of disruption

## What airlines are doing What airlines are doing

– Virgin Atlantic

Gate Banners Safety Video & IFE

Seatback Magazine

Crew Training Seatback Cards

AeroMobile Communications Ltd, Proprietary and ConfidentialHow do passengers use their mobile devices in

- flight? Number of IMC Users on flights to/from the U.S.

Airline Number of

Customers Number of US

Customers % US

Customers A 22,127 5,211 24% B 254,717 8,986 4% C 118,341 15,671 13% D 72,127 6,933 10%How do passengers use their mobile devices in

- flight? II Number of IMC Users on flights to/from the U.S.

Of these, the percentage of customers who made an activity

were: For Airlines who are Voice Activated only

All Customers US

Customers All Customers US

Customers Data 54% 60% Data 52% 55% SMS 42% 38% SMS 42% 41% Calls 4% 2% Calls 6% 4% Over the past 3 months flying regular routes to/from the United States, there is a significant presence of U.S. subscribers but limited voice usageHow do passengers use their mobile devices in

- flight? III

529,000 /637,506

users 303,000 /284,174 calls made or received 1.2M /1.1M sent 403,000 /594,593 minutes

• Passenger connections to the AeroMobile system are increasing

• Overall usage of all IMC applications is increasing

• Average voice call is approximately two minutes

• There are still no reports of passenger complaints or disruptionsIMC and Consumer Protection Concerns

• There is no basis to conclude that a voice service, or IMC generally, raises aviation consumer protection

concerns

• No reported disruption or other concerns regarding IMC availability, particularly in the context of widespread Wi

- Fi availability

• No unfair or deceptive practices associated with IMC availability

• Data and SMS (“quiet services”) constitute 80%+ of IMC usage when measured across the entire installed fleetIMC and Consumer Protection Concerns, Continued

• Only 20% is “voice” service (calls, call alerts and access to voicemail)

• Much of the voice service is “listen only”

• Measured across various airlines (those operating many routes to/from the USA) “voice” usage is even lower

• Data from various foreign airlines serving routes to and from the United States with significant U.S. passenger presence

### In conclusion

• IMC has been in operation since 2008 and provides a competitive and complementary alternative to existing WiFi

- based connectivity options .

• U.S. subscribers are frequent users of IMC

– including voice

-- without incident, albeit only on foreign airlines and outside U.S. airspace.

• Data and text dominate passenger usage and several U.S. airlines have announced that they would not offer voice if IMC becomes available.

### In conclusion, Continued

• Foreign administrations have left the decision of which IMC applications to offer, including voice, to their respective airlines.

• U.S. airlines should be given the opportunity to choose a) whether to install IMC systems and b) which IMC services to offer their passengers, at least on long haul international flights.