And especially as they move into safety services, I think you’re going to see those also continue to sort of push up ARPUs and potential on that front, but somewhat into some business aircraft and then a lot into rotorcraft, a lot of interest in the mid band products in rotorcraft.And then in drones, that’s still a very early market segment, but very positive in terms of just the activity in unmanned aerial vehicles. So we’re at a really early stages of that. I’m really happy that we got to terminals and more coming. We’re hearing about their wins with specific platforms and that the FTC that they are both getting and planning for this year. But I think that’s going to build kind of, I wouldn’t say fast, but it’s going to take time, but I think we’re going to start seeing a few 1000 as the year there, which will add to that roughly 70,000 aircraft installed with their better ARPUs than we’ve seen before.
And the safety version of those products, which is where, which what they’re really looking for, come towards the end of this year and that in into next year with flight trials and that sort of thing. So that will also improve business there in aviation section. Landon Park Okay, understood. And just one last one for maybe for you, Tom. On the operating leverage run, it’s sort of limited this year, because of the investments in the business and the SBA contract. That’s something that we should expect in 2024 and beyond to be more in the cards for you guys in terms of expanding your EBITDA margin.Thomas Fitzpatrick So the operating leverage is intact, right? So if you look for the variable cost to produce an incremental minute, a use is really kind of hard to find.
So the operating leverage is intact. I agree with you that FTA kind of because the FTA contract is so big, his big is relatively big and lower margin, it appears that there is, that the EBITDA margin has decreased. But that is not because the operating leverage isn’t in the business. It’s the state same fundamentals of the cost to produce an incremental minute are intact, and we will continue to grow EBITDA as to our service business. As service revenues grow, EBITDA should grow. Matthew Desch That’s true of equipment too I mean, which is right over margin, but has increased dramatically over the last two or three years. And that’s all, this is all positive and it all falls to the bottom line and generates cash for us. So it’s a good thing.Landon Park And I mean, the 20%, SG&A this year and last year, is that something that we should think will moderate a little bit at some point or is that – how should we –Thomas Fitzpatrick That’ll moderate every time.Landon Park Okay.
Understood. Thanks for taking the questions.Matthew Desch You are welcome.Operator The next question is a follow up from Louie DiPalma with William Blair. Please go ahead.Louie DiPalma Hi, guys, I have a question in terms of why have your satellite phone competitors experienced major supply chain issues but it doesn’t seem to have really impacted you?Matthew Desch I have my own personal ideas about that. I’m not sure it’s appropriate for me to describe competitors’ issues or problems. I think their businesses is smaller. I think they perhaps outsource more their technology to others and so they don’t have quite the supply chain control over the situation that we do.I can only speak to the excellent work my team does. We’ve been doing this longer than anyone has.
We have more breadth of experience perhaps. I really think I’m more would rather focus on sort of the positives of what we’ve done. It looks a little scary, I would say a year, year and a half ago, as we were hearing from supply chain partners that things that we were expecting to come in and parts that were had one week or three months kind of intervals suddenly got pushed out a year. But perhaps because of the importance of our products and the markets they serve, perhaps just excellent relationships with the supply chain my team has, they really jumped on that fast and just worked out really hard. And maybe our volumes are higher and drives higher priorities from suppliers that maybe others do. But I think we’re on top of it now. I think it’s pretty much over from almost all products, certainly phones.And remember, during that whole time in our case, I mean, we had the incremental challenge of higher demand.
So we were grabbing all the demand of others. It was the important thing to us just at the time, we were working through those challenges. So that was an additional complexity we had to work with. But I just owe it to the expertise and competency of my team more than anything else.Thomas Fitzpatrick I will just amplify that what Matt said. Like our satellite phone business is highly strategic to us. We are not reluctant at all to invest in safety stock and score that business. It’s unclear that our competitors feel the same way about their handset business as we build out ours.Louie DiPalma Great. Thanks, Matt and Tom. And also earlier this year, you launched the Iridium Go Exec, which seems like a really exciting device. What has been the initial feedback of the Go Exec from your channel partners?
And does the service revenue for that product does that go in the commercial voice and data reporting segment? Or does it go into the IoT reporting segment?Matthew Desch It goes into commercial voice and data. As far as reception is very, very high. It’s a unique product. There isn’t anything sort of supplying that speed on a portable battery powered basis that allows a smartphone or tablet to do more than just connect with just texting. I mean, it allows higher speed services. it allows email. I was using it myself the other day on a long flight, multiple voice lines.It’s extremely flexible, has open interfaces. So we’re seeing application providers start to adapt their products to it so that they can drive specific applications which means they’re going to be selling the product as well.
