What To Know About Gogo's Intelsat Partnership

Shares of Intelsat SA

surged as much as 25 percent after its partnership with Gogo Inc

over the use of Intelsat's satellite network for Gogo's in-flight connectivity devices. By using this shared network, Gogo's 2Ku solution will be capable of delivering hundreds of Mbps per aircraft over every part of the globe. Gogo offers in-flight connectivity and wireless entertainment services for commercial and business fleets around the world. Gogo has partnerships with 14 commercial airlines and is installed on more than 2,500 commercial aircraft. On the other hand, Intelsat's satellite network delivers high-quality, cost-effective video and broadband services anywhere in the world. Under a long-term agreement with Intelsat, Gogo's next generation in-flight connectivity technology will be powered by Ku-band capacity on the Intelsat EpicNG high throughput geosynchronous (GEO) satellites combined with OneWeb's planned low earth orbit (LEO) satellite constellation. Beginning in 2016, Gogo will expand its use of the Intelsat network by purchasing additional capacity on Intelsat's Ku-band infrastructure, a contiguous, resilient network within Intelsat's 50 satellite system which covers 99 percent of the world's populated regions. Gogo's customers will benefit from the continuous planned upgrades of the shared network, including up to 250 Mbps per plane on the Intelsat EpicNG fleet. One Web's Low Earth Orbit satellites are expected to be the first satellites to enable high performance services at high latitudes and on polar flights. Shares of GOGO were down 2 percent at $11.96, while I shares advanced 19.6 percent at $2.38.