Wednesday, April 30, 2014

AT&T Aims at GoGo, Plans to Offer In-Flight LTE by 2015

AT&T Mobility (NYSE: T) announced that they will make use of LTE technology and some of its spectrum to offer in-flight Wi-Fi services that will likely be operational by 3rd quarter of 2015. This move will directly challenges the current in-flight connectivity company like Gogo, Inmarsat, Row 44, and others.

Aircell's GoGo has dominated the slow-paced in-flight internet market, it looks like they will have a big competition poking their market. AT&T will be in partnership with Honeywell’s aerospace division to develop both broadband and "onboard" entertainment systems for aircraft.

John Stankey, chief strategy officer at AT&T said: "We are building on AT&T's significant strengths to develop in-flight connectivity technology unlike any other that exists today, based on 4G LTE standards. We believe this will enable airlines and passengers to benefit from reliable high speeds and a better experience. We expect this service to transform connectivity in the aviation industry."

As of the moment, specific details of AT&T's service in-flight service is still not clear, like the speeds of the service that they will support or the spectrum that they will use to power the service, and how much will it cost.

GoGo last fall said that they are developing a technology that will significantly speed up existing services.

This will be interesting since AT&T has deep pockets and lobbying muscle that can kick GoGo out of the top.

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