In flight connectivity to add a revenue stream for telecos and airlines

·         DoT notified the Flight and Maritime Connectivity (FMC) Rules in 2018.

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The rules allow the provisioning of telecom (voice calls) and broadband services over the Indian airspace and in the Indian waters.

The FMC services will be activated once aircraft attains a minimum height of 3000 Meters in Indian Airspace

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· IFC the market will open additional revenue opportunities for Satcom players and Telecom service providers will offer services to foreign and domestic airlines. As per IFC is expected to contribute to $30 billion to airline revenues globally by 2035.
 Dot has issued FMC licenses to Hughes Comm. India, BSNL, Indo Teleports Ltd., Tatanet Services Ltd. Reliance has approached to DoT with the license application.

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Pricing Models for IFC

· The average tariff for IFC services is in the range of $5-$10 per hour and $15-$20 for a full day service in long haul flights.
· Indian citizens are used to consuming data at a low as $0.02(Rs 1.4 ) for 1GB on the ground.
· Hike of around 30% in domestic airfare once IFC services are launched.
· IFC will never serve as a major revenue generation source for telecos owing to lower volumes involved
· Industry reports suggest that the installation of equipment in aircraft will cost around Rs 150 million(Rs 15 cr) per aircraft.
· Airlines are expected to demand at least Rs 36 for a call, leaving little margin for telecos.