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Friday, April 25, 2008
Call Waiting at 30,000 Feet? Looking into In-Flight Cell Phone
Matt Egan
FOXBusiness

Buying tickets for commercial flights could eventually feature two new seating options: Talking or non-talking.
If American regulators follow their European Union counterparts and give airlines and passengers the green light to chat on
their cell phones above the clouds, airlines may be able to find a new revenue stream -- and a new way to annoy their already
rattled customers.
Neither of the two federal regulatory agencies with authority to approve in-flight cell phone use in the U.S. have revealed
plans to lift the current ban, but new research and recommendations from a federal committee could pave the path for such
a move. Resistance so far stems from a fear of the unknown: There hasn’t been enough research on the potential damage that
interference from cell phones could do on plane navigation and communications systems or on ground systems.
If the necessary regulatory hurdles are removed down the line, how would an in-flight cell phone system even work?
Say you are flying over the Grand Canyon and feel the need to call friends to brag about it. A tiny hockey puck-sized transmitter inside the plane's cabin called a Picocell would link your iPhone or other mobile device to a transponder which would then communicate to an antennae on the ground and place the call. The technology would only allow a limited number of passengers at a time to receive a signal on their phones and could also be shut off by pilots.
“It's coming to a technological point where you can do a lot of these things cheaply and with less adverse influence on airline economics, but ultimately the FCC has to permit it," said airline consultant Bill Mann of R.W. Mann. “Airlines will want to charge for that. You are selling productivity to passengers who want to be in communication. The question is what is the right price?”
The other question should be: Do passengers even want the service? A 2005 poll from the National Consumers League showed just
21% of people surveyed wanted to lift the cell phone ban. Another 2005 poll from the National Business Travelers Association
revealed only 14% of its surveyed members were in favor of allowing cell phone, text messaging and Internet usage.
“I have to take red eyes every once in awhile and I don’t want to be sitting next to someone who is breaking up with their
girlfriend for three hours,” said Bill Connors, executive director and chief operating officer of the NBTA.
Earlier this month Rep. Peter DeFazio (D-OR) and other representatives introduced an act called HANG UP, which stands for
Halting Airplane Noise to Give Us Peace. The bill would only ban voice communications, not access to the Internet, e-mail
and text messaging services that are currently available on some flights on JetBlue (JBLU) and other airlines.
Despite some resistance from regulators and lawmakers, experts said there’s a good chance telecoms like AT&T (T) and Sprint (S) will see an incentive to opening the skies to cell phones. It’s clear airlines, which have been hit hard by soaring oil prices, will be looking for another source of revenue.
“They are all going to attempt to generate revenue. The days of putting stuff on the airplane just for the enjoyment of
the passenger are probably over, at least in the coach class,” said Terry Wiseman of Airfax.com, an online newsletter covering
the industry.
The European Union cleared the path for in-flight calls earlier in April, now allowing phone service above 10,000 feet. Air
France and various other airlines there took advantage of the rule changes, following Dubai-based Emirates Airlines, which
launched in-flight phone services last month on a route to Casablanca.
In the U.S., the Federal Aviation Administration and the Federal Communications Commission have banned in-flight calls to-date.
The FCC is worried about potential interference with wireless networks on the ground, while the FAA is worried about the impact
on airplane-based systems.
In an effort to learn more about potential interference from phones, the FAA hired RTCA Inc. to serve as a federal advisory
committee on the matter in 2003. The committee, which includes everyone from NASA and plane manufacturers like Boeing (BA)
to pilots and flight attendants, released guidelines late last year that paved the way for the EU changes. Airlines like Southwest
(LUV) and Continental (CAL) could use the recommendations to test on-board cell phones on their planes and receive FAA approval.
There is a much less clear path toward FCC approval of in-flight cell phone use, as the agency said there are no plans to change its rules. The FCC did open a proceeding in late 2004 on the matter and received more than 8,000 comments but eventually terminated it, citing “insufficient technical information.” The agency could reopen its proceeding at a later date, but it would likely receive an earful from those opposing a rule change.
“The reactions of people to this possibility certainly are informed by people’s behavior in movie theaters and restaurants. On an airplane, I think we’ll find out,” said Dave Carson, co-chair of RTCA, the federal advisory committee.
Despite the potential revenue gains, airlines are advised to tread lightly with this issue.
“There could be a groundswell against this because the passenger has been pushed to the limit. The blogoshere could take up this cry and absolutely destroy traffic for an airline so they have to be very careful about this," said Wiseman of Airfax.com.
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Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
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But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.






