Gogo Inc (GOGO) 2016 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Q3 2016 Gogo earnings conference call.

女士們、先生們，美好的一天，歡迎參加 2016 年第三季 Gogo 財報電話會議。

(Operator Instructions)

（操作員說明）

This call may be recorded. I would now like introduce your host for today's conference, Ms. Alva, Vice President of Investor Relations and Treasurer.

此通話可能會被錄音。現在我想介紹一下今天會議的主持人，投資者關係副總裁兼財務主管阿爾瓦女士。

Thank you.

謝謝。

Good morning, everyone, and welcome to Gogo's third-quarter 2016 earnings conference call. Joining me today to talk about our results are Michael Small, President and CEO, and Norman Smagley, Executive Vice President and CFO.

大家早安，歡迎參加 Gogo 2016 年第三季財報電話會議。今天與我一起談論我們的業績的是總裁兼執行長 Michael Small 和執行副總裁兼財務長 Norman Smagley。

Before we get started, I would like to take this opportunity to remind you that during the course of this call we may make forward-looking statements regarding future events and the future financial performance for the Company. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements on this conference call.

在我們開始之前，我想藉此機會提醒您，在本次電話會議期間，我們可能會就公司未來事件和未來財務表現做出前瞻性陳述。我們提醒您考慮可能導致實際結果與本次電話會議前瞻性聲明中的結果有重大差異的風險因素。

These risk factors are described in our earnings press release and are more fully detailed under the caption Risk Factors in our 10K which was filed with the SEC on February 25, 2016, and our other documents filed with the SEC. In addition, please note the date of this conference call is November 3, 2016. Any forward-looking statements that we may make today are based on assumptions as of this date. We undertake no obligation to update these statements as a result of new information or future events.

這些風險因素在我們的收益新聞稿中進行了描述，並在 2016 年 2 月 25 日向 SEC 提交的 10K 風險因素標題以及我們向 SEC 提交的其他文件中進行了更全面的詳細說明。此外，請注意本次電話會議的日期是 2016 年 11 月 3 日。我們今天可能做出的任何前瞻性陳述均基於截至該日期的假設。我們不承擔因新資訊或未來事件而更新這些聲明的義務。

During this call, we will present both GAAP and non-GAAP financial measures. We include an explanation of adjustments and other reconciliations to the most comparable GAAP measure in our third-quarter earnings press release.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。我們在第三季財報新聞稿中解釋了對最具可比性的公認會計準則衡量標準的調整和其他調節。

This call is being broadcast on the Internet and is available on the Investor Relations section of Gogo's website at www.ir.gogoair.com. The earnings press release is also available on our website. After management's remarks we will host a Q&A session. Now it's my great pleasure to turn this call over to Michael.

這次電話會議正在網路上播出，也可在 Gogo 網站 www.ir.gogoair.com 的投資者關係部分查看。收益新聞稿也可在我們的網站上取得。管理層發言後，我們將舉辦問答環節。現在我很高興將這個電話轉給麥可。

Thanks, Varvara.

謝謝，瓦爾瓦拉。

Good morning, everyone. Congratulations to the Chicago Cubs!

大家，早安。恭喜芝加哥小熊！

We had another strong quarter and continue to build momentum around 2Ku. I cannot emphasize enough the importance of this technology, as it is the fuel powering our continued growth. As of today, 2Ku was installed on 47 planes across five airlines. We remain on track to meet our guidance of 75 to 100 installs by the end of the year.

我們又經歷了一個強勁的季度，並繼續圍繞 2Ku 建立勢頭。我怎麼強調這項技術的重要性都不為過，因為它是我們持續成長的動力。截至目前，2Ku 已安裝在五家航空公司的 47 架飛機上。我們仍有望在今年底前達到安裝量 75 至 100 次的目標。

More importantly, we are spearheading an unprecedented operational ramp-up to bring more than 500 2Ku aircraft to the sky by the end of 2017. Quite simply, 2Ku is the best-performing solution in the world. We are seeing streaming-class connectivity speeds of more than 50 megabits per second today, and we will more than double that figure next year with our new proprietary modem and the availability of high-throughput satellites.

更重要的是，我們正在帶頭進行前所未有的營運提升，到 2017 年底將 500 多架 2Ku 飛機送上天空。簡而言之，2Ku 是世界上性能最佳的解決方案。今天，我們看到串流媒體級連接速度超過每秒 50 兆比特，明年，借助我們新的專有調製解調器和高吞吐量衛星的可用性，我們將把這個數字提高一倍以上。

This market-leading performance in all regions, not just certain parts of the United States, is why we have grown our backlog to more than 1,500 aircraft, 1,000 of which were awarded this year alone including additional aircraft with Delta. The more high-bandwidth 2Ku aircraft we have in play, the higher our pull will be. Therefore, we remain keenly focused on reducing 2Ku installation time.

這種在所有地區（而不僅僅是美國某些地區）的市場領先表現是我們的積壓飛機數量增加到超過1,500 架的原因，其中僅今年就授予了1,000 架飛機，其中還包括達美航空的其他飛機。我們使用的高頻寬 2Ku 飛機越多，我們的拉力就越高。因此，我們仍然專注於減少 2Ku 安裝時間。

We expect to ramp up to an annual install rate of about 750 planes in 2018 and to maintain that level in subsequent years. We expect CapEx to decline in 2019, both in aggregate dollars and, more significantly, as a percentage of revenue. We expect to be solidly generating cash in 2020.

我們預計 2018 年年安裝量將增加至約 750 架飛機，並在隨後幾年保持這一水準。我們預計 2019 年資本支出將下降，無論是總金額，還是更重要的是佔收入的百分比。我們預計 2020 年將穩定產生現金。

During the quarter we announced our next-gen North American ground network that will launch in 2018. It will deliver a ground-like experience for business aviation and commercial regional aircraft operating in the United States and Canada. With our regional next-gen ATG network and our global satellite 2Ku network, we are uniquely positioned to serve far more aircraft at 100 megabits-per-second service than any other ISD provider. More importantly, we are delivering results now. Our growth remains strong, with revenue for the quarter of $147 million, up 17% year over year. Adjusted EBITDA was up 57% to over $15 million.

在本季度，我們宣布了將於 2018 年推出的下一代北美地面網路。它將為在美國和加拿大運營的公務航空和商用支線飛機提供類似地面的體驗。憑藉我們的區域性下一代 ATG 網路和全球衛星 2Ku 網絡，我們擁有獨特的優勢，能夠以每秒 100 兆比特的速度為更多的飛機提供比任何其他 ISD 提供者更多的服務。更重要的是，我們現在正在交付成果。我們的成長依然強勁，本季營收為 1.47 億美元，年增 17%。調整後 EBITDA 成長 57%，超過 1500 萬美元。

In our Commercial Aviation business, we saw key advancements in each region of the world. In Europe, after a highly competitive process, Air France-KLM selected 2Ku for its long-haul aircraft. This award, along with British Airways, Iberia, Virgin Atlantic, Delta and Air Canada wins brings our share to about 40% of all transatlantic flights.

在我們的商用航空業務中，我們看到了世界每個地區的重大進步。在歐洲，經過激烈的競爭後，法國航空荷航選擇了 2Ku 為其長途飛機。該獎項與英國航空、西班牙國家航空、維珍航空、達美航空和加拿大航空一起獲獎，使我們在所有跨大西洋航班中的份額達到約 40%。

The quarter also marked several important global expansion milestones. In Asia, we secured regulatory approvals and are now providing service to our airline partners flying over China. In South America, we launched 2Ku service for GOL. For its inaugural flight, 2Ku was offered free of charge. GOL had close to 100% take rate with passenger streaming and Web browsing. The CEO of GOL even did a Facebook live session in-flight.

該季度還標誌著幾個重要的全球擴張里程碑。在亞洲，我們獲得了監管部門的批准，現在正在為飛越中國的航空公司合作夥伴提供服務。在南美洲，我們為GOL推出了2Ku服務。 2Ku 的首航是免費提供的。 GOL 的乘客流量和網頁瀏覽率接近 100%。 GOL 的執行長甚至在飛行中進行了 Facebook 直播會議。

Operationally, our focus continues to be on accelerating 2Ku installations. Since our Investor Day a month ago, we have more than tripled the number of installed 2Ku aircraft to 47. We now have 12 installation lines up and running, and have added two new SDCs in the past month bringing our total to 10. With the summer travel season behind us, we are seeing installs steadily increasing and have cut our 2Ku install time down to three and a half days from eight days just a month ago. During the quarter, we also installed and upgraded an additional 180 aircraft to ATG-4 and are on pace to meet our guidance of about 600 such installs for the year.

在營運方面，我們的重點仍然是加速 2Ku 安裝。自一個月前的投資者日以來，我們已安裝的2Ku 飛機數量增加了兩倍多，達到47 架。我們現在有12 條安裝線正在運行，並在過去一個月中增加了兩架新的SDC ，使我們的總數達到10 架。夏季旅遊旺季已經過去，我們看到安裝量穩步增長，並將 2Ku 安裝時間從一個月前的八天縮短到三天半。本季度，我們還安裝了另外 180 架飛機並將其升級為 ATG-4，並正在努力實現今年約 600 架此類安裝的指導。

Turning to Business Aviation, we continue to generate outstanding financial results, including significant cash flow. During the quarter, we began selling Gogo Biz 4G in anticipation of launching the service in the first half of next year. We also announced partnerships with Constant Aviation Partners and Duncan Aviation to secure SGCs for Gogo Biz 4G on select business aviation aircraft.

說到公務航空，我們繼續創造出色的財務業績，包括大量現金流。本季度，我們開始銷售 Gogo Biz 4G，預計明年上半年推出此服務。我們也宣布與 Constant Aviation Partners 和 Duncan Aviation 建立合作夥伴關係，以確保在部分公務機上使用 Gogo Biz 4G 的 SGC。

To augment our VA product and service offerings, we signed agreements with leading ad at providers, Garmin, Jet Fuel X and flightplan.com. Pilots will soon have real-time information, enabling them to fly more safely and efficiently and also resulting in considerable cost savings. By continuing to add new partnerships and by enhancing our VA capabilities with the addition of Gogo Biz 4G and next-gen ATG, we remain well-positioned for long-term revenue growth in this important segment.

為了增強我們的 VA 產品和服務，我們與領先的廣告供應商 Garmin、Jet Fuel X 和 Flightplan.com 簽署了協議。飛行員很快將獲得即時訊息，使他們能夠更安全、更有效率地飛行，並節省大量成本。透過繼續增加新的合作夥伴關係，並透過添加 Gogo Biz 4G 和下一代 ATG 來增強我們的 VA 能力，我們在這一重要領域的長期收入成長中保持著有利的地位。

Before turning it over to Norm, I want to clarify a few things about our next-gen ATG technology that we first introduced a month ago. This new offering was made possible by patent and proprietary technology we have developed over the last two decades. By leveraging more than 60 Megahertz effectiveness in 2.4G bands, we can offer a streaming class ATG experience similar to our global satellite network.

在將其交給 Norm 之前，我想澄清一些關於我們一個月前首次推出的下一代 ATG 技術的事情。這項新產品是透過我們在過去二十年開發的專利和專有技術實現的。透過利用 2.4G 頻段超過 60 兆赫的效率，我們可以提供類似於我們的全球衛星網路的串流媒體級 ATG 體驗。

In addition to our R&D capabilities, two other things really set our next-gen solution apart from the competition. First, ours is a fully-integrated solution that combines our existing licensed spectrum with unlicensed spectrum in the 2.4 gigahertz band. Unlicensed spectrum alone is not enough. The integrated nature of our offering is the only way to reliably provide the industry-leading speeds that our VA and CA customers demand. Our new ATG network will deliver 6 Ds of 100-plus megabits per second and 99% of our higher reliability and availability.

除了我們的研發能力之外，還有兩點真正讓我們的下一代解決方案在競爭中脫穎而出。首先，我們的解決方案是一個完全整合的解決方案，它將我們現有的授權頻譜與 2.4 GHz 頻段的非授權頻譜結合。僅有未經許可的頻譜是不夠的。我們產品的整合性是可靠地提供 VA 和 CA 客戶所需的行業領先速度的唯一方法。我們的新 ATG 網路將提供每秒 100 兆以上的 6 D 傳輸速度以及 99% 的更高可靠性和可用性。

Secondly, in launching our new offering, we have significant economic advantages, including time to market because we can leverage our existing ground infrastructure, distribution channels operational capabilities and aircraft hardware. For a relatively low-cost, we will be able to bring forth more than a tenfold capacity increase. In sum, we will have the best ground network at the lowest cost in the United States and Canada.

其次，在推出新產品時，我們擁有顯著的經濟優勢，包括上市時間，因為我們可以利用現有的地面基礎設施、分銷管道營運能力和飛機硬體。以相對較低的成本，我們將能夠實現十倍以上的產能成長。總而言之，我們將以最低的成本在美國和加拿大擁有最好的地面網路。

Now I'd like to turn it over to Norm.

現在我想把它交給Norm。

Thank you Michael.

謝謝邁克爾。

Good morning, everyone.

大家，早安。

We had a great third quarter. Total revenue was up 17% to $147 million. Service revenue grew 20% to a record $129 million. Adjusted EBITDA increased 57% to over $15 million representing a 10% margin.

我們第三季表現出色。總營收成長 17%，達到 1.47 億美元。服務收入成長 20%，達到創紀錄的 1.29 億美元。調整後 EBITDA 成長 57%，達到 1,500 萬美元以上，利潤率為 10%。

Turning to segment results, CA North America service revenue increased 14% to nearly $89 million, driven largely by an increase in airfare onlines to over 2,600. This reflects 70 installs and 37 retirements.

至於分部業績，CA 北美服務收入成長了 14%，達到近 8,900 萬美元，這主要是由於線上機票價格增加到超過 2,600 種。這反映了 70 次安裝和 37 次停用。

As Michael mentioned, we started production of 2Ku installs for our North American airline partners this quarters and are rapidly deploying 2Ku on more aircraft. We had approximately 170 net new awarded or not-yet-installed aircraft at quarter end. We expect to install most of these aircraft by the end of 2018.

正如 Michael 所提到的，我們本季開始為北美航空公司合作夥伴生產 2Ku 安裝，並迅速在更多飛機上部署 2Ku。截至季末，我們淨擁有約 170 架新授予或尚未安裝的飛機。我們預計在 2018 年底前安裝大部分飛機。

In addition the number of CA/MA aircraft to be converted to 2Ku is now about 800. Remember that most of these planes are mainlined, high-bandwidth aircraft. While will they currently account for approximately one-third of our North American connected fleet, these aircraft are a more significant portion of current bandwidth consumption. We expect to see meaningful growth in CA/MA ARPA when these aircraft convert to 2Ku.

此外，現在要轉換為 2Ku 的 CA/MA 飛機數量約為 800 架。請記住，這些飛機中的大多數都是乾線、高頻寬飛機。雖然它們目前約占我們北美互聯機隊的三分之一，但這些飛機在當前頻寬消耗中所佔的比例更大。我們預計，當這些飛機轉換為 2Ku 時，CA/MA ARPA 將會出現有意義的成長。

For the quarter, we achieved annualized ARPA of $134,000, flat to the third quarter of last year. ARPA grew 8% year over year, adjusting for the dilutions in additional RJs and aircraft donated by new airline partners. We expect to be largely done with RJ installs by the end of this year. We also expect about three-quarters of our 2Ku aircraft installs in 2017 to be in North America. Both of these factors will start fueling ARPA growth later in 2017.

本季度，我們實現了年化 ARPA 134,000 美元，與去年第三季度持平。 ARPA 年成長 8%，對新航空公司合作夥伴捐贈的額外 RJ 和飛機的稀釋進行了調整。我們預計到今年年底 RJ 安裝將基本完成。我們也預計 2017 年安裝的 2Ku 飛機中約四分之三將在北美。這兩個因素都將在 2017 年稍後開始推動 ARPA 的成長。

CA North America segment profit was up 23% $15 million, representing a 16% margin. This was up 1 percentage point from last year, despite incurring some one-time costs associated with the ramp-up of 2Ku installs. Our investment in 2Ku installs drives lower costs and a more rapid installation pace.

CA 北美部門獲利成長 23%，達到 1,500 萬美元，利潤率為 16%。儘管因 2Ku 安裝量的增加而產生了一些一次性成本，但這一數字比去年增長了 1 個百分點。我們對 2Ku 安裝的投資可降低成本並加快安裝速度。

Turning to the rest of the world, total revenue for the quarter was $7.6 billion, more than double the prior year, driven by strong aircraft online and ARPA growth. Aircraft online increased 96 from the prior year. We added seven aircraft during the third quarter, including our first Ku installs for GOL and Virgin Atlantic, and ended with 256 aircraft online. We have now completed Ku installs for Delta and expect to complete the job by year end.

轉向世界其他地區，在強勁的飛機在線和 ARPA 增長的推動下，本季總收入為 76 億美元，是上年同期的兩倍多。線上飛機較前一年增加96架。我們在第三季度增加了 7 架飛機，包括為 GOL 和維珍航空安裝的第一批 Ku 飛機，最終線上飛機數量為 256 架。我們現已完成達美航空的 Ku 安裝，預計在年底前完成這項工作。

Our CA rest of the world awarded but not yet installed aircraft increased about 600 at quarter end following the recent Air France-KLM win. We expect to install the majority of our awarded aircraft by the end of 2018, with installations ramping up during 2017 and further accelerating in 2018.

繼最近法國航空-荷航獲勝後，我們的 CA 全球其他地區已獲獎但尚未安裝的飛機在季度末增加了約 600 架。我們預計在 2018 年底前安裝大部分獲獎飛機，安裝量將在 2017 年逐步增加，並在 2018 年進一步加速。

For the quarter, we generated annualized ARPA of $174,000, up 22% from the prior year, driven primarily by higher airline paid usage. (Inaudible) provided their passengers with free fifteen-minute sessions on all of their flights, driving usage up threefold. This demonstrates the significant ARPA growth opportunity of the multi-payer model, in which connectivity is paid for by airlines, sponsors and other third parties, in addition to passengers. We expect ARPA growth to moderate in the rest of world as we launch new airline partners in the next several quarters until the new fleets begin to mature.

本季度，我們產生的年化 ARPA 為 174,000 美元，比上年增長 22%，這主要是由於航空公司付費使用量增加所致。 （聽不清楚）在所有航班上為乘客提供了 15 分鐘的免費課程，使使用量增加了三倍。這表明多支付模式具有重大的 ARPA 成長機會，在這種模式中，除了乘客之外，航空公司、贊助商和其他第三方也為連接支付費用。我們預計，隨著我們在未來幾季推出新的航空公司合作夥伴，直至新機隊開始成熟，全球其他地區的 ARPA 成長將放緩。

Rest of world segment loss for the quarter was flat to prior year at roughly $20 million, despite continued investments and the rollout of 2Ku including STCs and OEM installation activities.

儘管持續投資並推出了 2Ku（包括 STC 和 OEM 安裝活動），但本季世界其他地區的虧損與去年同期持平，約 2,000 萬美元。

Now turning to BA, service revenue was up 28% to $33 million, driven by 20% growth in APG aircraft online to nearly 4,000 and about a 9% increase in ATG service ARPU, over 2,500 per month. BA equipment revenue of $16 million was down from the prior year. The primary driver of the decline was the deferral of revenue on ATG equipment shipped under a sales program in which the equipment will be upgraded to Gogo Biz 4G next year, at which point the revenue will be recognized. We deferred $2 million of equipment revenue in the quarter and $2.8 million year to date.

現在轉向 BA，服務收入成長了 28%，達到 3,300 萬美元，這得益於 APG 線上飛機成長 20%，達到近 4,000 架，ATG 服務 ARPU 成長約 9%，每月超過 2,500 架。 BA 設備營收比前一年下降 1,600 萬美元。下降的主要驅動因素是根據銷售計劃發貨的 ATG 設備收入的遞延，該設備將於明年升級到 Gogo Biz 4G，屆時將確認收入。我們遞延了本季 200 萬美元的設備收入和年初至今的 280 萬美元。

Segment profit was up 14% to $2,100, representing a nearly 42% segment profit margin, driven by growth in high margin service revenue which represented almost 70% of BA revenue for the quarter.

部門利潤成長 14%，達到 2,100 美元，部門利潤率接近 42%，這得益於高利潤服務收入的增長，該收入佔本季度 BA 收入的近 70%。

Third-quarter consolidated Cash CapEx of $36 million was $24 million higher than the prior year due to increased 2Ku equipment purchases to support our 2Ku installations.

第三季合併現金資本支出為 3,600 萬美元，比前一年增加了 2,400 萬美元，這是由於增加了 2Ku 設備採購以支援我們的 2Ku 安裝。

Turning to full-year 2016 expectations, we are reiterating adjusted EBITDA guidance of between $55 million to $65 million and continue to expect revenue to be above the midpoint of our guidance range of $575 million to $595 million. Based on our success to date with 2Ku installs, we are now guiding toward the top end of the guidance range of $110 million to $135 million from Cash CapEx this year.

談到 2016 年全年預期，我們重申調整後 EBITDA 指引為 5,500 萬至 6,500 萬美元，並繼續預期營收將高於我們指引範圍 5.75 億至 5.95 億美元的中點。基於我們迄今為止在 2Ku 安裝方面所取得的成功，我們目前的目標是今年現金資本支出達到 1.1 億至 1.35 億美元指導範圍的上限。

I'd like to give some additional color on Cash CapEx in 2017 and 2018. We are successful accelerating the rate of 2Ku installs and want it to go even faster. These are high-return investments for us. For next-gen APG, we expect approximately $50 million of capital investment that will be likely phased in between 2017 and 2019.

我想為 2017 年和 2018 年的現金資本支出提供一些額外的資訊。我們成功地加快了 2Ku 安裝速度，並希望它能更快。這些對我們來說都是高回報的投資。對於下一代 APG，我們預計約 5,000 萬美元的資本投資可能會在 2017 年至 2019 年之間分階段進行。

As Michael mentioned, this investment will enable us to deliver 100 megabits per second speeds with business aviation and the regional jet markets starting in 2018, driving continued revenue growth in this highly-profitable business. After 2018, we expect Cash CapEx to decline in both absolute dollars and as a percent of revenue, driven by lower co-investment per aircraft, stable installation rates and largely complete next-gen APG network.

正如 Michael 所提到的，這項投資將使我們能夠從 2018 年開始為公務航空和支線噴射機市場提供每秒 100 兆位元的速度，推動這項高利潤業務的收入持續成長。 2018 年之後，我們預計現金資本支出的絕對值和占收入的百分比都會下降，原因是每架飛機的聯合投資下降、安裝率穩定以及下一代 APG 網路基本完成。

In conclusion, I'd like to share with you how our quarterly performance fits into our long-term path to profitability outlined during our recent Analyst Day.

最後，我想與您分享我們的季度業績如何適應我們在最近的分析師日概述的長期盈利之路。

Our path to profitability is centered around four key pillars: aircraft online, investment for aircraft, ARPA and margins. During the quarter, we made significant progress on all these metrics. 2Ku momentum remains strong following the Air France-KLM win, and at the same time it reduced both install costs and the time required to install 2Ku.

我們的獲利之路圍繞著四個關鍵支柱：飛機線上、飛機投資、ARPA 和利潤。在本季度，我們在所有這些指標上都取得了重大進展。在法國航空-荷航獲勝後，2Ku 的勢頭仍然強勁，同時它也降低了安裝成本和安裝 2Ku 所需的時間。

Further, by ramping up 2Ku installs and announcing our next-gen ATG solution, we are now in great position to unlatch significant ARPA growth across all aircraft types. Getting more bandwidth and more aircraft online will help us leverage our operating investments, drive margins higher, and ultimately generate profitability and drive increased shareholder value.

此外，透過增加 2Ku 安裝量並宣布我們的下一代 ATG 解決方案，我們現在處於有利地位，可以在所有飛機類型上實現 ARPA 的顯著增長。獲得更多頻寬和更多飛機在線將有助於我們利用我們的營運投資，提高利潤率，並最終產生利潤並提高股東價值。

Operator, we are ready for our first question.

接線員，我們準備好回答第一個問題了。

(Operator Instructions)

（操作員說明）

Our first question comes from Dick Ryan with Dougherty.

我們的第一個問題來自迪克·瑞安和多爾蒂。

Thank you and congratulations on a good quarter. Michael, it looks like you've added a nice number of orders, just shy of maybe 200 since the analyst day. Can you discuss where those are going? And maybe an extension, you talk about ramping installs pretty significantly next year in 2018 as well. What, if any, supply-chain challenges are you seeing, and how confident are you in that installation capability?

謝謝並祝賀您度過了一個美好的季度。 Michael，看起來您已經添加了相當多的訂單，自分析師日以來可能不到 200 個。你能討論一下這些東西要去哪裡嗎？也許還可以延伸一下，您談到明年 2018 年的安裝量也會大幅增加。您看到了哪些供應鏈挑戰（如果有）？您對安裝能力有多大信心？

The primary increase in 2Ku backlog comes from fleet decisions at Delta and the supply-chain confidence is rising dramatically every day. You have seen the pace of installs over the last month and we're often doing about one a day right now. We have very good confidence that we will exceed 500 2Ku installs by the end of next year.

2Ku 積壓訂單的增加主要來自達美航空的機隊決策，供應鏈信心每天都在急劇上升。您已經看到了上個月的安裝速度，我們現在通常每天大約安裝一個。我們非常有信心在明年年底 2Ku 的安裝量將超過 500 次。

Okay. With a month gone in Q4 you've got a pretty broad range, $11 million to $21 million, for EBITDA, what happens to get either to the low end of that range or to the upper end of the range?

好的。第四季度過去了一個月，EBITDA 的範圍相當廣泛，從 1100 萬美元到 2100 萬美元，如果達到該範圍的下限或上限，會發生什麼情況？

We feel really good about our ability to deliver consistent results during the quarters and we feel that's a very comfortable range for us. So we don't see significance [where you have to] drive any big change in the quarter.

我們對我們在各個季度提供一致結果的能力感到非常滿意，我們認為這對我們來說是一個非常舒適的範圍。因此，我們認為本季沒有必要推動任何重大變革。

Okay. And, one last one for me, Norm, on Gogo Vision revenue, Delta and American are offering free movies. We were kind of looking for maybe a sequential increase in that number. It came in at $7.8 million. What is driving Vision at this point?

好的。 Norm，最後一件事是關於 Gogo Vision 的收入，達美航空和美國航空正在提供免費電影。我們希望這個數字可能會持續增加。它的售價為 780 萬美元。此時此刻，是什麼在推動 Vision 的發展？

What is driving vision? It's converted to the wholesale model that's over our [KLM] partners and we are getting very good adoption from passengers, driving a lot of usage.

什麼是駕駛視覺？它已轉換為我們的 [KLM] 合作夥伴的批發模式，我們得到了乘客的廣泛採用，推動了大量使用。

American went free at the start of this month, so that will kick in, in the fourth quarter.

美國航空於本月初免費，因此將於第四季開始實施。

Okay. Maybe one last one, China, looks like you got the flyover rights, what's left to get for certification there, and what's the status with Shareco?

好的。也許最後一個，中國，看起來你已經獲得了飛越權，還需要獲得什麼認證，Shareco 的狀況如何？

We did get the right to operate in the Ku band over China and now our partners that fly over there, most often being Delta, to maintain over China, and we are making great progress towards our launch with Shareco.

我們確實獲得了在中國上空運行 Ku 頻段的權利，現在我們飛到那裡的合作夥伴（通常是達美航空）在中國上空進行維護，並且我們在與 Shareco 的合作方面正在取得巨大進展。

Okay, thank you.

好的謝謝。

Our next question comes from Phil Cusick with JPMorgan.

我們的下一個問題來自摩根大通的菲爾·庫西克。

Hey, guys, thanks. Norm, thanks for the preview of CapEx but can you add some more detail? How should we think about the cash CapEx structure of your new 2Ku contracts versus historical?

嘿，夥計們，謝謝。 Norm，感謝您對資本支出的預覽，但您能添加更多細節嗎？我們該如何考慮新 2Ku 合約與歷史合約的現金資本支出結構？

We are seeing overall economics are attractive and (inaudible). We are seeing a trend toward lower (inaudible) for aircraft and we are focusing very closely on bringing the cost of equipment and installs down to further prove those.

我們看到整體經濟具有吸引力並且（聽不清楚）。我們看到飛機成本下降（聽不清楚）的趨勢，我們非常關注降低設備和安裝成本以進一步證明這一點。

So the cost for aircraft [proofs] two ways: the strength of 2Ku is the leading solution in the marketplace, becomes clearer every day, and then we continue to drive cost out of the system.

因此，飛機的成本[證明]有兩個面向：2Ku 的優勢是市場上領先的解決方案，每天都變得更加清晰，然後我們繼續降低系統成本。

I just want to make sure I understand. So a trend toward lower coinvestment means that they're putting in less -- a smaller percent of return?

我只是想確保我理解。那麼共同投資減少的趨勢意味著他們投入的資金更少——回報率更小？

No, we put it less.

不，我們放得少了。

Got it. And, what does the RFP pipeline look like today, Michael?

知道了。邁克爾，現在的 RFP 頻道是什麼樣的？

It continues strong and, again, 2Ku is clearly the superior global solution in the marketplace and I would expect it to be able to continue to add to our backlog.

它繼續保持強勁勢頭，而且 2Ku 顯然是市場上卓越的全球解決方案，我希望它能繼續增加我們的積壓訂單。

Okay. And, last, you said that GOL was free the first day. Are they now charging and how does that look? Also, is Aeromexico able to charge yet? Thanks.

好的。最後，您說 GOL 第一天免費。他們現在正在充電嗎？看起來怎麼樣？另外，墨西哥航空可以收費嗎？謝謝。

At this stage of the 2Ku deployment, we're focused on network performance, technical performance, and it's been extraordinary, not only in speed but also in reliability and availability. We continue to begin charging, which is either getting regulatory approvals or deploying the platforms, or just getting agreement with the airlines. (Inaudible) we are moving out of data and into full customer mode and that is happening steadily. But it's premature. Across 47 aircraft and across five airlines, it's way too early to begin talking about the financial performance but the technical performance is off the charts good.

在2Ku部署的這個階段，我們專注於網路效能、技術效能，它非常出色，不僅在速度上，而且在可靠性和可用性上。我們繼續開始收費，要么獲得監管部門的批准，要么部署平台，要么只是與航空公司達成協議。 （聽不清楚）我們正在從數據轉向完全客戶模式，而且這種情況正在穩步發生。但這還為時過早。對於 47 架飛機和 5 家航空公司來說，現在談論財務表現還為時過早，但技術性能卻非常好。

Got it, thank you.

收到了。謝謝。

Our next question comes from Louie DiPalma with William Blair.

我們的下一個問題來自路易·迪帕爾瑪和威廉·布萊爾。

Good morning, thanks for taking the question, Mike, Norm, and Varvara. When you gave the high-level target of generating cash in 2020, is that on a levered basis?

早安，感謝麥克、諾姆和瓦爾瓦拉提出這個問題。當您給出 2020 年產生現金的高級目標時，這是基於槓桿的嗎？

Yes.

是的。

Okay. And secondly, I have a high-level question regarding an alternative perspective of value in Gogo. Many of the investors on this call also follow the telecom tower operators, which have 10- to 20-year contracts with their customers, and you're one of those customers, and many of the investors on the call also cover wholesale data center operators which have 10- to 20-year contracts.

好的。其次，我有一個關於 Gogo 的另類價值視角的高階問題。本次電話會議中的許多投資者也關注電信塔運營商，這些運營商與其客戶簽訂了10 到20 年的合同，而您就是這些客戶之一，並且本次電話會議中的許多投資者還涵蓋批發資料中心營運商其合約期限為 10 至 20 年。

Traditionally, Gogo has had 10-year contracts with its airline partners, and because of these long-term contracts, the high-switching costs and how success-based investments such as building a new tower or installing a new 2Ku system on aircraft -- because those comprise most of CapEx, one of the key investor metrics that some investor uses adjusted funds from operations which focuses on maintenance CapEx. So, along those lines I was wondering if you could provide any color into what maintenance CapEx would be for 2017, 2018, or 2019 if you were to strip away some of the success-based CapEx associated with 2Ku?

傳統上，Gogo 與其航空公司合作夥伴簽訂了 10 年期合同，由於這些長期合約、高昂的轉換成本以及基於成功的投資（例如建造新塔或在飛機上安裝新的 2Ku 系統）因為這些構成了大部分資本支出，這是一些投資者使用調整後的營運資金（專注於維護資本支出）的關鍵投資者指標之一。因此，沿著這些思路，我想知道如果您要剝離與 2Ku 相關的一些基於成功的資本支出，您是否可以對 2017 年、2018 年或 2019 年的維護資本支出提供任何顏色？

We haven't made that forecast to the market but you are absolutely right that a significant majority of our capital expenditures are success based for installing 2Ku. There is very minimal maintenance CapEx.

我們還沒有對市場做出這樣的預測，但您說得對，我們的大部分資本支出都是基於安裝 2Ku 的成功。維護資本支出非常少。

CapEx is really driven by expansion rather than maintenance.

資本支出實際上是由擴張而不是維護所驅動的。

Right. Is there anything quantitative that you could say if, hypothetically, assuming that installation decreased from the 700 installation target down to 100, how much CapEx would decrease?

正確的。如果假設安裝量從 700 個安裝目標減少到 100 個，您是否可以定量地說，資本支出會減少多少？

Let me help you think about it this way. CapEx has three components to it: success-based airborne CapEx; capitalized software; and network infrastructure. So, we're not -- barring 2.4G aside from that, we are not spending a lot of money on network infrastructure because it's established. And the capitalized software piece, the bulk of that is really development of new technologies and deploying them into the field. There is a portion of it for maintenance and enhancements and those of kinds, our existing technology. So the lion's share of our CapEx is really success-based airborne spending.

讓我幫您這樣想。資本支出由三個部分組成：基於成功的機載資本支出；資本化軟體；和網路基礎設施。所以，除了 2.4G 之外，我們不會在網路基礎設施上花費大量資金，因為它已經建立了。而資本化的軟體部分，其中大部分實際上是新技術的開發並將其部署到該領域。其中一部分用於維護和增強以及我們現有的技術。因此，我們資本支出的最大部分實際上是基於成功的空中支出。

Got you. Thank you very much, Norm.

明白你了。非常感謝你，諾姆。

Thank you. Our next question comes from Denny Galindo with Morgan Stanley.

謝謝。我們的下一個問題來自摩根士丹利的丹尼·加林多。

Good morning, this is Denny Galindo calling in for Simon. I had a question on the activity rate in North America, and also the ARPA price per session. It looks like there is a trade-off where the activity rate's going up and the price per session's going down. Is there anything that's happening there in North America? You mentioned some international activity, but there is anything on revenue models that is happening in North America that is causing that? And do you expect these trends to go in the same direction, or reverse back to the previous direction?

早安，我是丹尼·加林多 (Denny Galindo) 打電話給西蒙。我對北美的活動率以及每次會話的 ARPA 價格有疑問。看起來存在一種權衡，即活動率上升而每個會話的價格下降。北美正在發生什麼事嗎？您提到了一些國際活動，但北美正在發生的收入模式是否有任何原因導致了這種情況？您預期這些趨勢會朝同一方向發展，還是會逆轉回先前的方向？

You're seeing the impact of the promotion we have been doing with T-Mobile. As we've talked about in lots of previous calls, and we do large [bunches] of different promotions, it can have the effect of -- have an impact on RPS down and usage up, and that's what you're seeing this quarter with T-Mobile.

您已經看到了我們與 T-Mobile 合作進行的促銷活動所產生的影響。正如我們在之前的許多電話會議中談到的那樣，我們進行了大量不同的促銷活動，它可能會產生以下效果：對 RPS 下降和使用量上升產生影響，這就是您在本季度看到的情況與T-Mobile。

It looked like the margins were little bit lower. Is that the direction -- is it better direction to go the other way, or is it just one quarter and it's going to bounce around a lot?

看起來利潤率有點低。這是一個方向嗎？是走另一條路更好的方向，還是只是一個季度，而且會大幅反彈？

North American margins were lower because of the cost of install lines for 2Ku. It wasn't driven by fundamental business changes.

由於 2Ku 的安裝線成本較高，北美地區的利潤率較低。它不是由根本性的業務變化所驅動的。

Okay. And then, on a different direction, on the 75 to 100 2Ku, it seems like you are on pace to be very close to 100 if not over 100. I'm curious why you didn't adjust that guidance, 75 to 100. Is this kind of monthly install rate something that you would expect to bounce around quite a bit with airline schedules? Or is October a steady-state rate that you can keep getting in the future?

好的。然後，在不同的方向上，在 75 到 100 2Ku 上，看起來你的速度非常接近 100（如果不是超過 100）。我很好奇你為什麼不調整該指導，從 75 到 100。你是否認為這種每月安裝率會隨著航班時刻表而大幅波動？或者說 10 月是您未來可以繼續獲得的穩態利率嗎？

We have the capability to install at this rate but you have to marry that up with aircraft availability. You don't install continuously. The summer months being the prime example. We really get aircraft during the summer travel season. So this is our capability plus -- married up with the availability of the aircraft, at least for the forecast.

我們有能力以這樣的速度安裝，但必須將其與飛機的可用性結合。您不會連續安裝。夏季就是最好的例子。我們在夏季旅遊旺季確實有飛機。所以這是我們的能力加成——與飛機的可用性相結合，至少在預測中是如此。

That's it for me, thank you.

對我來說就是這樣，謝謝。

Our next question comes from Andrew DeGasperi with Macquarie.

我們的下一個問題來自麥格理的安德魯·德加斯佩里。

DeGasperi, thanks. First question, I was wondering, can you maybe go into the [serable] phaser antenna that you've announced a few -- two weeks ago?

德加斯佩里，謝謝。第一個問題，我想知道，您能否談談您兩週前宣布的[serable]移相器天線？

Sure. The phaser antennas -- phased-array, fully electronic, fleet [serable] antenna -- this is early-stage R&D; it's done to make sure we are always leaving the marketplace with new technology and the future proof the 2Ku and actually the ATG platform. We actually think this is the effective way to extend the life of both those platforms.

當然。相位器天線－相控陣、全電子化、艦隊[serable]天線－這是早期研發階段；這樣做是為了確保我們始終以新技術和麵向未來的 2Ku 乃至 ATG 平台離開市場。我們實際上認為這是延長這兩個平台壽命的有效方法。

Early stage, nothing is happening fast in that area, but we think it's important long run. It's where antenna technology is going over the next decade.

在早期階段，該領域沒有什麼快速發生的事情，但我們認為從長遠來看這很重要。這就是未來十年天線技術的發展方向。

Very interesting. And then, secondly, I'm not sure if you -- have you had a talk with American Airlines as far as next year's pace of activity as far as either 2Ku or potential churn coming from the legacy aircrafts?

很有意思。其次，我不確定您是否與美國航空公司就明年 2Ku 的活動節奏或遺留飛機的潛在流失進行了交談？

Yes, we are in discussions every day about getting our 2Ku installed on American, and that program going very well, as are the ATG-4 upgrades. And we expect our installs of 2Ku to begin next year. We have no further information on de-installation, but we do not expect a lot of activity in that regard in 2017.

是的，我們每天都在討論在美國航空上安裝 2Ku，該計劃進展順利，ATG-4 升級也是如此。我們預計 2Ku 的安裝將於明年開始。我們沒有關於卸載的更多信息，但我們預計 2017 年這方面不會有太多活動。

Got it. And, last question for me, your Business Aviation obviously had revenue growth, but I'm noticing that your air-to-ground shipments were down significantly in 3Q -- or decelerated significantly in 3Q (inaudible). I was wondering, is there a trend as far as on the top-market level side or is there -- is this due to competition? Thanks.

知道了。而且，我的最後一個問題是，你們的公務航空顯然有收入成長，但我注意到你們的空對地運輸量在第三季度顯著下降，或者在第三季度顯著減速（聽不清楚） 。我想知道，在頂級市場層面是否存在趨勢，或者是否存在——這是由於競爭？謝謝。

It relates to the deferral of the -- under the sales program for Gogo Biz 4G.

這與 Gogo Biz 4G 銷售計劃的延遲有關。

What's going on there is the customers who want Gogo Biz 4G are taking our current system now, and then we will upgrade the system next year when Gogo Biz 4G is available. We do not book the sale until the final delivery of the upgraded Gogo Biz 4G.

目前的情況是，想要 Gogo Biz 4G 的客戶現在正在使用我們目前的系統，然後我們將在明年 Gogo Biz 4G 可用時升級系統。在升級版 Gogo Biz 4G 最終交付之前，我們不會預訂銷售。

25 units were deferred in the third quarter.

第三季有 25 個單位被延後。

Got it. Very helpful, thank you. Thank you.

知道了。非常有幫助，謝謝。謝謝。

(Operator Instructions)

（操作員說明）

Our next question comes from John Hodulik with UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的約翰‧霍杜利克 (John Hodulik)。

It's Lisa Friedman for John. Just wanted to see if, Norm, you could give some more color on what you have to do to get the next-gen ATG up and running, what is the equipment that needs to be [flogged out] on the planes or on the towers, what can be reused, and whether you can front load any of that as you're doing ATG-4 upgrades so those planes are ready to go when the system is operational?

這是約翰的麗莎·弗里德曼。只是想看看，Norm，您是否可以對如何讓下一代 ATG 啟動並運行提供更多說明，飛機或塔上需要[鞭打]哪些設備，什麼可以重複使用，以及您是否可以在進行ATG-4 升級時預先加載其中任何內容，以便這些飛機在系統運行時做好準備？

Hi, Lisa, this is Michael. I'll take that question. We have to upgrade our 250 cell sites with basically new antennas and radio equipment and other networking equipment, and that takes advantage of the existing tower and power and that call that we have. So, relatively low-cost upgrade for cell site.

嗨，麗莎，這是麥可。我來回答這個問題。我們必須使用全新的天線、無線電設備和其他網路設備來升級我們的 250 個蜂窩基地台，這要利用現有的塔和電源以及我們擁有的呼叫。因此，蜂窩基地台的升級成本相對較低。

Then we have to add a new antenna and radio to the aircraft but we take advantage of the existing server and wireless access points that are already on the plane. All that work is underway. We have very good facility to exceeding 100 megabits per second and we have very good visibility to exceeding 99% availability and reliability of the system. We think both those will be industry-leading solution. This will be deployed in 2018.

然後我們必須在飛機上添加新的天線和無線電，但我們利用飛機上現有的伺服器和無線接入點。所有這些工作正在進行中。我們擁有超過每秒 100 兆位元的非常好的設施，並且我們對系統超過 99% 的可用性和可靠性有非常好的可見性。我們認為這兩者都將成為業界領先的解決方案。這將於 2018 年部署。

Okay. And then, you're not the only ones who are using unlicensed spectrum for next-gen ATG, I know there are some competitors in the BA space that don't have the licensed spectrum that you do. But I'm just wondering, as those competitors start to make more noise, and there's also a company that's promoting a microwave-based point-to-point solution, are you seeing any impact from those in the marketplace? Are your customers considering those options? Any color you could provide on the competitive landscape would be great.

好的。然後，你們並不是唯一在下一代 ATG 中使用未經許可頻譜的人，我知道 BA 領域有一些競爭對手沒有你們所擁有的許可頻譜。但我只是想知道，隨著這些競爭對手開始製造更多噪音，並且還有一家公司正在推廣基於微波的點對點解決方案，您是否看到市場上的影響？您的客戶正在考慮這些選擇嗎？你能在競爭格局中提供的任何顏色都會很棒。

We are feeling great about the competitive landscape. It's a real risk to put something unproven on your plane. We have 6,500 planes flying on our ATG network, and we will only enhance that proven network with the 2.4G upgrade to the network. So this is dramatically less risky. It's going to be way lower cost for us to do it, it's going to be way lower cost for our existing customers who want to upgrade than to go to a totally new system.

我們對競爭格局感覺良好。將未經證實的東西放在飛機上確實存在風險。我們有 6,500 架飛機在我們的 ATG 網路上飛行，我們只會透過對網路進行 2.4G 升級來增強這個經過驗證的網路。因此，這樣做的風險要小得多。對我們來說，這樣做的成本會低得多，對於想要升級的現有客戶來說，這比採用全新系統的成本要低得多。

So, we think we're going to have a lower-cost, higher-speed, more reliable solution from a proven operator than anything else in the marketplace. We are seeing very little impact.

因此，我們認為我們將從經過驗證的營運商那裡獲得比市場上任何其他產品更低成本、更高速度、更可靠的解決方案。我們看到的影響很小。

Okay. And then, just one more, which is, any progress on [line fed] with Boeing and Airbus?

好的。然後，還有一個問題，那就是，波音和空中巴士在[線路饋送]方面有什麼進展嗎？

Great progress with both of them. As we build our order book, the airlines want our technology as Airbus and Boeing see how well 2Ku performs, and it's only going to perform better as the new modem comes on and the high throughput satellite. We are actively working to get 2Ku on line fed and it's going very well.

他們倆都有很大的進步。當我們建立訂單時，航空公司需要我們的技術，因為空中巴士和波音公司看到了 2Ku 的性能，隨著新數據機的出現和高吞吐量衛星的出現，它只會表現得更好。我們正積極努力讓 2Ku 上線，進展順利。

Any sense of when you might reach that milestone?

你知道什麼時候可以達到那個里程碑嗎？

As we said at investor day, the first factory install should happen in 2017. We fully expect that and we expect to be ultimately OEM installable on all major aircraft types.

正如我們在投資者日所說，首次工廠安裝應於 2017 年進行。我們完全期待這一點，並希望最終能夠在所有主要飛機類型上進行 OEM 安裝。

Okay, thanks.

好的謝謝。

Thank you. Our next question comes from Andrew Spinola with Wells Fargo.

謝謝。我們的下一個問題來自富國銀行的安德魯·斯皮諾拉。

I just want to follow up on that prior question about the business jet market. With your new -- several new technologies coming, both the 4G and the next gen, it seems like a lot of change for that mark and maybe there would be some decision-making pauses and things like that. Do you think some of the people that are looking at adding Wi-Fi to their business jets might pause until the next-gen network's available, or are you going to do something similar with what you're doing with 4G where you will provide a hardware solution and upgrade them when that next-gen is available?

我只想跟進之前有關公務機市場的問題。隨著 4G 和下一代等新技術的出現，這個標記似乎發生了很多變化，也許會有一些決策暫停之類的事情。您是否認為一些正在考慮在其公務機上添加 Wi-Fi 的人可能會暫停，直到下一代網路可用，或者您是否會採取與 4G 類似的做法，在其中提供硬體解決方案並在下一代可用時升級它們？

I don't think there will be -- there will be limited freezing of decision making. The 4G is going to be most applicable to the larger business jets, almost all of which have our service today. So this is an upgrade decision, not a new purchase in most cases. The primary use in commercial aviation is going to be the regional jets where satellite solutions are awkward, in some cases almost impossible. So, I don't see a lot of freeze.

我認為決策不會受到有限的凍結。 4G 將最適用於大型公務機，我們今天幾乎為所有公務機提供服務。因此，在大多數情況下，這是升級決定，而不是新購買。商業航空的主要用途將是支線飛機，在這些飛機上，衛星解決方案很笨拙，在某些情況下幾乎不可能。所以，我沒有看到太多的凍結。

The primary softness in Business Aviation is general market, at the moment. And then, as Norm explained, this quarter and a tiny bit earlier in the year was just deferral of recognition of the sale as we sell -- until we openly upgrade these sales to Gogo Biz 4G.

目前公務航空的主要疲軟是一般市場。然後，正如 Norm 所解釋的那樣，本季和今年早些時候，我們只是推遲了對銷售的認可，直到我們公開將這些銷售升級到 Gogo Biz 4G。

Right. And the second question, I just wanted to ask, when you're talking about the competitive advantage you are going to have with the next-gen network, you referenced how, having the two networks -- the licensed and the unlicensed -- will give you a competitive advantage.

正確的。第二個問題，我只是想問，當您談論下一代網路將擁有的競爭優勢時，您提到了擁有兩個網路（授權和非授權）將如何為您帶來競爭優勢。

It is unclear to me why the existing network will provide you an advantage with the future network. Clearly, you are the established operator, you have certain benefits. But what I don't understand is how the two networks will be better than one network, and I was wondering if you could elaborate on that, because I'm trying to figure out what competitive advantage looks like in the next-gen world. Thanks.

我不清楚為什麼現有網路將為您提供未來網路的優勢。顯然，你是老牌經營者，你有一定的好處。但我不明白的是，這兩個網路如何比一個網路更好，我想知道你是否可以詳細說明這一點，因為我正在嘗試弄清楚下一代世界的競爭優勢是什麼樣的。謝謝。

The primary factor, pure and simple, is we're building on what we have today. So, if you're a 4G phone, there was no 3G network anywhere, you would notice gaps in service. If you offload to Wi-Fi and there was no 4G network behind it, you would notice gaps in service. So this is the upgrade path that the wireless industry uses generally to maintain backward compatibility and across network availability to ensure the call always goes through.

純粹而簡單的首要因素是我們正在現有的基礎上繼續發展。因此，如果您使用的是 4G 手機，任何地方都沒有 3G 網絡，您會注意到服務上的差距。如果您卸載到 Wi-Fi 並且背後沒有 4G 網絡，您會注意到服務上的差距。因此，這是無線行業通常使用的升級路徑，以保持向後相容性和跨網路可用性，以確保呼叫始終順利進行。

There are also more subtle technical issues of the nature of the 850 megahertz network versus the 2.4 gigahertz that allow us to more easily locate the aircraft in space and know where it is and how to do handoffs. We have significant advantages technically, but I would also point out the cost issue is highly relevant on all the existing towers and airborne equipment is already out there and the back-up network's already out there.

與 2.4 GHz 網路相比，850 MHz 網路的本質還存在更微妙的技術問題，這些問題使我們能夠更輕鬆地在太空中定位飛機並了解其位置以及如何進行切換。我們在技術上擁有顯著的優勢，但我還要指出，成本問題與所有現有塔台和機載設備已經存在並且備用網路已經存在高度相關。

As an integrated solution it is dramatically cheaper, it's dramatically more reliable and it's also going to allow us to get to 100 megabits per second, which we don't see others being able to achieve.

作為一個整合解決方案，它的價格便宜得多，可靠性要高得多，而且它還將使我們能夠達到每秒 100 兆比特，這是我們認為其他人無法實現的。

To make it really tangible, if you are flying over New York City, it's a high-noise floor in the unlicensed spectrum. There's a reasonable probability that the quality of the connectivity goes dramatically on 2.4 gig. If you don't have the back-up network that we have, where we can ensure the reliability and connection, you are running into a potential issue there. We avoid that issue by having the licensed spectrum to back up the 2.4G.

為了讓它真正有形，如果你飛越紐約市，這是一個未經許可的頻譜中的高本底噪音。 2.4 gig 上的連接品質有可能顯著提高。如果您沒有我們可以確保可靠性和連接的備份網絡，那麼您就會遇到潛在的問題。我們透過使用許可頻譜來支援 2.4G 來避免這個問題。

That's very helpful. Thanks for that.

這非常有幫助。感謝那。

Our next question comes from Lance Vitanza with Cowen.

我們的下一個問題來自蘭斯·維坦扎和考恩。

Thanks for taking the questions. I had a couple. The first, Norm, I think you touched on this in your prepared remarks but could you walk me through the rationale for adjusting ARPA to exclude the regional jets and the aircraft operated by new airline partners that have been added since 2015?

感謝您提出問題。我有一對。首先，Norm，我想您在準備好的演講中談到了這一點，但是您能否向我介紹一下調​​整ARPA 以排除支線飛機以及自2015 年以來新增的航空公司合作夥伴運營的飛機的理由？

Sure. Generally speaking, the ARPA of RJs is lower than that of mainline. So, as you add additional RJs into the mix, you will have a natural dilutive impact on the overall ARPA. We take those out to get effectively like a same-store sales type of approach and that is the rationale behind doing that, so you get a real sense of underlying what is happening with ARPA, on a meaningful apples-to-apples basis.

當然。一般來說，RJ的ARPA低於主線。因此，當您添加額外的 RJ 到組合中時，您將對整個 ARPA 產生自然的稀釋影響。我們採取這些措施是為了像同店銷售類型的方法一樣有效，這就是這樣做的基本原理，這樣您就可以在有意義的同類基礎上真正了解 ARPA 正在發生的事情。

We've had a impact -- we saw an 8% increase year over year for the quarter. There are new airlines that came on board that fleets haven't matured yet, as well, so as they add more aircraft, there is a second dilutive impact from those. So we take those out as well.

我們已經產生了影響——本季同比增長了 8%。還有一些新航空公司的機隊尚未成熟，因此當它們增加更多飛機時，就會產生第二個稀釋影響。所以我們也把它們拿出來。

Okay, thanks for that. And then, on the claim that the 2Ku is the superior global solution in the marketplace, (inaudible) others are arguing that Ka is a better solution, what are the data points that you are looking at, or that you can point us to, that confirm that this is really the superior global solution? Or is it just a function of the fact that you've got more installs than anyone else, or is there something else that we should be thinking about?

好的，謝謝。然後，關於 2Ku 是市場上卓越的全球解決方案，（聽不清楚）其他人認為 Ka 是更好的解決方案，您正在查看或可以向我們指出的數據點是什麼，證實這確實是卓越的全球解決方案？或者這只是因為您的安裝量比其他人都多，還是我們應該考慮其他事情？

That we have installs that are flying allows us to collect the data, but we are seeing superior peak speeds. We are seeing more consistent streaming across a larger number of customers and, very importantly, we're seeing a reliability and availability numbers that are dramatically higher than anything else we see in the marketplace.

我們的安裝量正在飛速增長，這使我們能夠收集數據，但我們看到了更高的峰值速度。我們看到更多客戶的串流媒體更加一致，而且非常重要的是，我們看到可靠性和可用性數字遠高於我們在市場上看到的任何其他產品。

Okay, thanks. Last one for me, could you talk a little bit about the recent Verizon announcement -- and if you did already, I apologize for missing it, but clearly that appears to be focused on drones for now but there was certainly a lot of confusion I think around that release that. Do you envision Verizon as an eventual competitor in the NA-CA marketplace?

好的謝謝。最後一個問題是，您能談談 Verizon 最近的公告嗎？如果您已經這樣做了，我很抱歉錯過了它，但很明顯，目前的重點似乎是無人機，但肯定有很多困惑。想想那個釋放那個。您認為 Verizon 會成為 NA-CA 市場的最終競爭對手嗎？

No, Verizon will not compete with -- at least the current contemplated solution. It is for drones which are much lower altitude, much slower speed, and network architecture that works for that will not work for 500-plus-mile-an-hour aircraft at over 30,000 feet.

不，Verizon 不會與之競爭——至少不會與當前設想的解決方案競爭。它適用於海拔低得多、速度慢得多的無人機，適用於此的網路架構不適用於飛行高度超過 30,000 英尺、時速超過 500 英里的飛機。

Great. Thanks for the clarification.

偉大的。感謝您的澄清。

Our next question comes from Louie DiPalma with William Blair.

我們的下一個問題來自路易·迪帕爾瑪和威廉·布萊爾。

Thank you. You have provided a tremendous amount of margin commentary regarding 2018 and 2019, and I was just wondering, as more aircraft are upgraded from ATG to 2Ku, do you still expect the Business Aviation segment margin will remain in the low 40% range?

謝謝。您對2018 年和2019 年的利潤率提供了大量評論，我只是想知道，隨著越來越多的飛機從ATG 升級到2Ku，您是否仍然預計公務航空部門的利潤率將保持在40% 的低水平範圍內？

Yes. The fuel for the growth of our business is bandwidth, and the more bandwidth you bring to the air the better everything gets. This is all good news, financially, is to bring -- to keep upgrading the network.

是的。我們業務成長的動力是頻寬，您向空中傳輸的頻寬越多，一切就會變得越好。這在財務上都是好消息——不斷升級網路。

The ATG network will maintain the high utilization, which is I think the question you're getting to.

ATG 網路將保持高利用率，我認為這是您要解決的問題。

Great. Is there going to be a headwind I guess as the 800 aircraft are upgraded from ATG to 2Ku, and are some of those costs going to be transferred from the Commercial segment to the Business Aviation segment?

偉大的。我猜隨著 800 架飛機從 ATG 升級到 2Ku，是否會逆風，其中一些成本是否會從商業部門轉移到公務航空部門？

I think there will be an increased amount of the network capacity of the air to ground going to Business Aviation over time. We are already seeing that trend that we have with over 4,000 planes flying in BA we have plenty of scale to support that.

我認為隨著時間的推移，公務航空的空對地網路容量將會增加。我們已經看到了這種趨勢，英航有超過 4,000 架飛機在飛行，我們有足夠的規模來支持這一趨勢。

More bandwidth equals more revenue. I think your question is, if you're asking that question about us, with 4,000 planes and growing, imagine a new competitor trying to support an air-to-ground network, even if they claim they might have a possible intention to get to 300 aircraft, you still take thousands of aircraft to support a regional air-to-ground network, and we have them, and I'm very comfortable with the economics in our case.

更多頻寬等於更多收入。我想你的問題是，如果你問的是關於我們的問題，我們擁有4,000 架飛機並且還在不斷增加，想像一下一個新的競爭對手試圖支持空對地網絡，即使他們聲稱他們可能有可能意圖達到300 架飛機，你仍然需要數千架飛機來支援區域空對地網絡，我們擁有它們，我對我們案例的經濟性非常滿意。

Great. And how far away do you envision low-profile antennas such as the phaser antenna that you're working on, how far away do you think those are from becoming more mainstream in the business aviation market?

偉大的。您認為薄型天線（例如您正在開發的相位器天線）離成為公務航空市場主流還有多遠？

There may be some applications in the next few years, but it is several years before they're the even possibly the primary solution in the marketplace.

未來幾年可能會有一些應用程序，但它們甚至可能成為市場上的主要解決方案還需要幾年的時間。

Thanks.

謝謝。

Thank you. Our last question comes from Carter Mansbach with Jupiter Wealth.

謝謝。我們的最後一個問題來自 Jupiter Wealth 的 Carter Mansbach。

Good morning, gentlemen. Congratulations on another solid quarter. I don't believe you answered the first question directly. So, since the analyst day it seems like you've had an increase of about 150 to 200 planes, who are the airlines that you signed with?

早安，先生們。恭喜又一個穩定的季度。我不相信你直接回答了第一個問題。那麼，自分析師日以來，您的飛機數量似乎增加了約 150 至 200 架，您與哪些航空公司簽約？

There have been no unannounced signings in that -- we said primarily it is an increase in Delta aircraft count. But our airline partners make decisions on a regular basis about which aircraft to upgrade now, and this is -- that's a result of those conversations and decisions by airlines.

沒有任何未經宣布的簽約——我們說的主要是達美航空飛機數量的增加。但我們的航空公司合作夥伴定期決定現在升級哪架飛機，這是航空公司這些對話和決定的結果。

Got you. So no new airlines, just increase with airlines you currently have.

明白你了。因此，沒有新的航空公司，只需增加現有的航空公司即可。

That's correct.

這是正確的。

I have been involved with the Company for three years, and I'm sure you would agree the Company is in the best position for growth going forward. However, stock is down 10%, 50% of the companies sold short. The perception of the product in the public eye is weak, and the stock clearly is negative. What is the mission and how are you going to go about changing that perception?

我在公司工作了三年，我相信您會同意公司處於未來發展的最佳位置。然而，股價下跌了10%，50%的公司賣空了。該產品在公眾眼中的認知度很弱，該股顯然是負面的。使命是什麼？您將如何改變這種看法？

We created this industry with an air-to-ground solution that became congested, we have acknowledged that for some time. The answer is bandwidth, and we have 2Ku coming to market right now. Hop on a plane, fly 2Ku, you'll change your perception of the Company. We have the winning position for the next stage of growth in this industry.

我們用空對地解決方案創建了這個行業，但它變得擁擠，我們已經承認這一點有一段時間了。答案是頻寬，我們現在有 2Ku 即將上市。跳上飛機，搭乘 2Ku，您將改變您對公司的看法。我們在該行業下一階段的成長中處於制勝地位。

Okay. Congratulations again on a great quarter. Thanks for taking my questions.

好的。再次恭喜這個季度的出色表現。感謝您回答我的問題。

Thank you. I would like to turn the call back to Michael Small for any closing remarks.

謝謝。我想將電話轉回邁克爾·斯莫爾（Michael Small），請其發表結束語。

Thank you. We are again thrilled that 2Ku is getting installed on planes every day. It is a superior solution. And now that we are seeing it go on planes, we've removed one more -- we've gone over one more step of the journey to delivering bandwidth to the sky. And we are in great shape -- stronger than we've ever been -- and we look forward to a great 2017 and beyond. So thank you all for joining the call today, and go Cubs.

謝謝。我們再次為 2Ku 每天都安裝在飛機上而感到興奮。這是一個優越的解決方案。現在我們看到它在飛機上運行，我們又刪除了一個——我們在向天空提供頻寬的旅程中又邁出了一步。我們的狀況非常好——比以往任何時候都更強大——我們期待著美好的 2017 年及未來。感謝大家今天加入電話會議，小熊隊加油。

Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all now disconnect.

女士們、先生們，感謝你們參加今天的會議。今天的節目到此結束。你們現在可以斷開連結了。