Impact of Connected Society Taking to the Skies

In a surprising and likely controversial step, U.S. aviation regulators on Thursday suggested they are leaning toward eventually allowing in-flight calls from airline passengers—with two important caveats: airlines will have the option of whether to provide the service, and passengers must be informed well in advance if the flight allows calls.

Source: Transportation Department Weighs Allowing Phone Calls During Flights – WSJ

It seems that much of the swirl around this development by the DoT — reversing course and potentially allowing users to place and receive phone calls while in flight — is focused on the social aspect of the situation. The annoyance of having to listen to someone else’s conversation for 5+ hours on the flight from LAX to JFK.

From our perspective, it’s a trivial issue. As frequent riders of Amtrak between DC and NYC, there aren’t that many people on the phone for the most part, and it’s the reason by God gave us noise canceling headphones.

No, the real issue here is while people will be placing their seats in the full and upright position and locking their tray tables, they won’t be switching their smartphones over to airplane mode. And if the phones are on, think about how much data and content could be consumed during the over 75,000 daily flights across North America! Yes, many flights now have WiFi, but oftentimes we find ourselves just tucking away our phones and focusing on some “offline work.” But staying “connected” via voice calls might just push users over the edge to keep their phone out and signed up for GoGo inflight WiFi.

Of course, just like the jet stream across the United States, one plane’s tailwind is another one’s headwind. More data and connectivity on planes is great news for stocks in our Content is King and Connected Society investment themes . . . bad news for book publishers who cherish those full price book sales at the airport terminal.

It will likely be a few years before this becomes a reality. In the meantime, have a look at this video below that shows all the flights across North America in a single day — like little ants!

 

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

Comments are closed.