AT&T Cancels Plan to Offer In-Flight Wi-Fi

News - United States

AT&T has cancelled its plan to offer Wi-Fi in the skies. Back in April, the carrier announced partnership with Honeywell International Inc. to offer in-flight wireless service based on its 4G LTE technology. According to T-mobile it wants to pay attention to the acquisition of Mexican wireless carrier Iusacell which is a $2.5 billion. It also means that Gogo’s number one spot is in no danger. Fletcher Cook, AT&T spokesman, said in a statement, “After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the inflight connectivity industry,” He further said, “We are focusing our capital on transformative investments, such as international and video.”

The Dallas telecommunication provider previously planned to partner with aerospace company Honeywell in order to install the required hardware on airplanes to support the service. Over the next decade the service could generate over one billion dollars in revenue, according to Honeywell. But the carrier did not provide its own revenue estimates. On the other hand the news that AT&T has dropped the plan to offer in-flight wireless service caused Gogo’s stock rose eleven percent instantly after the news broke and closed at $18.40 on Monday in New York. Talking to Bloomberg, CEO Gogo, Michael Small said, "We look forward to competing with existing competitors and anyone else who wants to get into the space." Small did not want to comment on AT&T’s announcement but he said “We firmly believe that we are a leader in this space because we specialize in aviation and we’ve built a network to service the global aviation market.” RunwayGirl Network was the first to report the news.

AT&T also wants to pay attention to “transformative investments” as the company is planning to buy DirecTV for $48.5 billion. For the carrier it is an opportunity to offer customers a package of services that would include pay TV, broadband Internet and wireless service. 


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