Morgan Stanley Speculates on How Recent AT&T News Might Affect Gogo

In a report published Tuesday, Morgan Stanley analyst Simon Flannery reiterated an Underweight rating on

. In the report, Morgan Stanley noted, “Today, AT&T announced plans to launch an in-flight connectivity service for commercial, business, and general aviation, planned to be available as soon as late 2015. The company plans to work with Honeywell to provide hardware and service capabilities to deliver the in-flight connectivity solution, using an air-to-ground network, similar to Gogo. We note that in January 2012, Gogo had proposed using the WCS spectrum for broadband, although AT&T would have to get approval from the FCC to roll out an air-to-ground network using their existing spectrum.” Gogo closed on Monday at $18.38.