I recall a while back FRX were reporting cost of each subscriber...

I recall a while back FRX were reporting cost of each subscriber acquisition, but we never found out the hard cost of each unit. I can't expect the cost would be more than a couple of dollars, and if they are physically distributed by Scoot rather than by post it at least increases the value of the offering to the customer. Not sure whether this will be the case?

UNL report the activation rate of the SIMs that are issued by their wholesale partners, and I'd imagine we'd be somewhere in line with them (~1/3) as their offer is essentially the same as our Partner 2.0 program or these airline/partnership deals. Essentially a low or no cost microchip with an amount of data that is enough to test out the service, but if you actually want to use it, you have to pay.

At anywhere near these conversion rates, with ~$2m in the bank, it would be financially sound for FRX to distribute as many microchips as possible to Scoot passengers.

I hope that the release of X2 means that X has achieved profitability/sustainability and that they are seeking a way to entice the value seeking segment to engage with the product, and provide substantial scale. We still have approx 80k subscribers that haven't yet activated a microchip.

Finally, I believe the Scoot WiFi global data will only be a limited promo. I wouldn't be expecting that X will fully integrate inflight unless the promo goes well, but I also don't see them as competing either. If we go full on into this space it would be via a partnership with OnAir, Gogo or Panasonic Avionics (the main players in the space).

The below link say that Scoot use Gogo, but their website shows Deutsch Telecom.

https://www.letsflycheaper.com/blog/airlines-2/airlines-that-offer-inflight-wifi/

A further link to the projected growth in airline broadband (apparently airlines will make more our of broadand than they currently do from fares!!):

https://www.aerosociety.com/news/billion-dollar-in-flight-broadband/