AT&T Plans To Launch In-Flight Wi-Fi; Gogo Shares Falls
On Monday afternoon, April 28, 2014, AT&T Inc. (NYSE: T) announced that it had plans to launch a high-speed 4G LTE in-flight connectivity service for airlines and its passengers.
The service is estimated to be launched late 2015, and will be able to provide passengers with fast, reliable Wi-Fi, and even on-board entertainment.
The cellular company is planning on building an innovative air-to-ground network, in the United States, to provide this service to airlines as well as its passengers.
Additionally, airlines can expect bettered connectivity solutions on the flight including, improved cockpit communications, maintenance operations and crew services.
According to the press release from AT&T, "Everyone wants access to high-speed, reliable mobile Internet wherever they are, including at 35,000 feet,” said John Stankey, Chief Strategy Officer at AT&T. “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 – we are truly mobilizing the sky.”
Gogo Inc. (NASDAQ: GOGO) was hurt by this news Monday and shares plummeted 19.74 percent or $3.63 per share to $14.75. The in-flight internet company currently has a market capitalization of $1.56 billion.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.