Wednesday, April 21, 2010

iPass Takes To The Skies - (NASDAQ: IPAS)

It seems the internet is everywhere we go these days, with the advent of the Smartphone and 3G networks the internet literary is and the tip of our fingers. Is there anywhere we can’t get the internet? I thought airplanes was a good answer until today. iPass Inc. (NASDAQ: IPAS) announced the immediate availability of a new premium in-flight Wi-Fi subscription service for its iPass Mobile Network customers. The convenient service will be on more than 825 commercial airplanes. The service will allow iPass customers to connect safely and simply to the internet at 30,000.

The company surveyed a few thousand iPass customers to see if there was a demand for in-flight Wi-Fi service. The survey uncovered a resounding demand for in-flight Wi-Fi with 63% saying it was critical for meeting business needs, especially on flights over one hour. A massive 87% said they would use it if it was part of the iPass Mobile Network service.

There are currently three tiers of flight length: $4.95 for less than 1.5 hours, $9.95 for 1.5 to three hours; and $12.95 for more than three hours.

I hadn’t realized the internet had already made its way on airlines but when I stopped to think about it, I wasn’t very surprised. Internet access on Airlines was bound to happen, I mean c’mon to think people could stay away from their emails for a few hours in ludicrous. Of course I am using sarcasm; it’s funny how these products are created to make life easier when in reality they just seem to make us busier. I mean how did business peoples possibly survive before the advent of portable internet?

But that’s just me, I’m sure there will be plenty of people more than willing to pay for the new service. Obviously there is a demand and it seems In-flight Wi-Fi is here to stay, so I’d say it’s a good move by iPass to get into the market.

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