Honeywell And Inmarsat To Modernize Global In-Flight Connectivity
-New Service to Deliver Fast, Reliable In-Flight Connectivity for iPads, Smartphones, Tablet Devices, and Laptops
-Allows for Real-Time Social Media, Video Conferencing, and Multi-Media Presentation in-Flight, Similar to Being at Home or in the Office
-Honeywell and Global Xpress Network to Establish Leadership Position in Rapidly Growing Airborne Connectivity Segment; Industry Forecasts Airline Passenger Traffic to Double Over the Next 20 Years
-$2.8 Billion Estimated Value to Honeywell Over the Next Two Decades
18 Apr, 2012, 04:00 ET
LONDON and PHOENIX, April 18, 2012 /PRNewswire/ -- Honeywell (NYSE:HON) and Inmarsat (LSE:ISAT.L) have signed an exclusive agreement to provide global in-flight connectivity services to business, commercial, and government aviation customers around the world. Under the terms of the agreement, Honeywell will develop, produce, and distribute the onboard hardware that will enable users to connect to Inmarsat's Global Xpress™ network. This exclusive agreement is estimated to represent $2.8 billion for Honeywell in sales of hardware, customer service, and maintenance to airlines, government entities and original equipment manufacturers (OEMs) over the next two decades. Global Xpress is scheduled for launch in 2013, with global service for commercial, business aviation, and government customers available in 2014.
By combining Honeywell's satellite communication capabilities with Inmarsat's Global Xpress connectivity, travelers will be able to do everything from real-time social media, to video conferencing and multi-media presentation development while in-flight virtually anywhere in the world, with an experience similar to being at home or in the office. Passengers will have fast, reliable in-flight connectivity for their iPads, smartphones, tablet devices, and laptops while crossing oceans.
"With this new service, the flow of information will no longer stop when the door to the aircraft closes," said Tim Mahoney, President and CEO, Honeywell Aerospace. "Honeywell identified global aircraft connectivity as a future growth trend, and through the combination of the recently acquired EMS Technologies, Inc.'s broad technology offerings and Honeywell's global aerospace franchise, the company is the perfect partner to launch the Inmarsat Global Xpress aerospace network. We believe this new network will significantly expand the connectivity options of consumer, business, and government customers around the world."
By the year 2016, it is estimated there will be 10 billion mobile devices in the world, and a global population of approximately 7.3 billion people. Demand for data traffic is expected to grow by a factor of 50 for smartphones and a factor of 62 for tablets. By 2016, it is estimated that 71 percent of all mobile traffic will be used for watching videos. With the roll-out of the Global Xpress network, Honeywell is in a leading position to deliver airborne connectivity solution to this rapidly expanding market.
"Global Xpress will be the world's first global Ka-band service for aviation customers and will raise the bar for in-flight connectivity," said Leo Mondale, Managing Director, Global Xpress, Inmarsat. "Honeywell is the most qualified and credible technology partner in their field, and has put forward a superb technical solution for the Global Xpress aviation user terminal. Building on its truly global presence, which today supports a broad portfolio of aviation products and services, Honeywell will offer world class customer service, support, and maintenance for the Global Xpress connectivity products worldwide."
Global Xpress Transforms Consumer and Business Traveler Connectivity
Global Xpress will operate in the Ka-band, with four times the bandwidth available compared to alternative solutions in Ku-band. This expanded spectrum resource, delivered via spot beam technology, will enable Global Xpress to outperform Ku-band based services in both speed and cost.
Honeywell already supports Inmarsat's current premier aviation service, SwiftBroadband, so it is meeting the increasing need for global in-flight communications today, while building a bridge to better and faster communications when Global Xpress launches.
"Passengers worldwide are hungering for better connectivity and more expanded services during flights, driven in part by the explosion of tablet devices," said Carl Esposito, Vice President, Marketing and Product Management, Honeywell Aerospace. "Airlines are taking notice of this development and placing a higher value on passenger connectivity as a way to add value and differentiate their services."
Global Xpress Network Expands Government and Military Connectivity Options to Improve Field Coordination
With this new service, government users can communicate mission critical information with ground bases regarding details about position and status of manned and unmanned aircraft. Additionally, Honeywell believes that the network connectivity requirements of government users to "always be on" will drive an accelerated level of adoption of this service to meet critical mission requirements.
This service represents a high value for government customers, enabling them to buy comparatively inexpensive satellite communications, and use an already established global consistent network to send data across for many purposes.
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Inmarsat plc is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. Inmarsat employs around 1,500 staff in more than 40 locations around the world, with a presence in the major ports and centers of commerce on every continent. For the year ended 31st December 2011, Inmarsat plc had total revenue of US$1,409 million and an EBITDA of US$854 million. Inmarsat is listed on the London Stock Exchange (LSE:ISAT.L). For more information, please visit www.inmarsat.com.
Based in Phoenix, Arizona, Honeywell's aerospace business is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
Honeywell and the Honeywell logo are the exclusive properties of Honeywell, are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other Honeywell product names, technology names, trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries. All other trademarks or registered trademarks are the property of their respective owners. Copyright 2012 Honeywell.
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.
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