HDQDD

AT&T to challenge gogo in delivering in-flight Wifi.

http://in.reuters.com/article/2014/0...A3R1DH20140428

I'll be glad to see this. gogo is way overpriced for what they deliver.

javabytes

Agreed, everywhere I've used Gogo, it's been overpriced and terrible.

However, I doubt airlines are going to install equipment for multiple services on one plane. As an end user, you'll still be stuck with whatever service the airline chose to install, along with the prices that company wants to charge. Hopefully this at least spurs real innovation to get the service working better.

allset2travel

Did I read it right, service slated for late 2015? I am not holding my breath.

Spiff

Big time. Gogo's rates have climbed into the usurosphere.

HDQDD

True, but just having another player in the market will (hopefully) force gogo to invest in their product. Of course, that would also likely require changing a plane's hardware...

nmenaker

I think this is going to be more difficult for AT&T than they think it will be. onboard systems, getting LAND to AIR communications to supply LTE data working strongly. 5 miles SEEMS like a shorter distance than SATELLITE to PLANE, but I think based on land based stations it might be more difficult.

They might also have to get some FCC access to allowing cellular data connections on planes (if they are going that route)

disclaimer: currently long GOGO stock from yesterday nader

adamj023

It isn't difficult for AT&T at all. AT&T owns choice spectrum assets. Propagating signal to airplanes can be done numerous ways and AT&T's system will be far superior to Go-go. As Airlines have multiple wireless competitors, Go-go vs AT&T and satellite options all become utilized. Transatlantic will require satellite and airlines are equipping planes for that.

It was shameful for the press to mention Malaysian in that article as it is completely unrelated in any way shape or form and I won't go into details as I will get moderated out. The press is a bunch of zealots and journalists tend to be some of the worst people since they do not know what they are talking about most of the time. Reading newspapers or journalism today is like going through a junk pile.

nmenaker

availability of the spectrum isn't the logistical or technical problem here.

I'll guess we'll see though.

bjohnsonmn

AT&T's strength is the capacity of their ground network. They have a huge investment in ground back haul, which is growing constantly. With one business unit leasing space from a different one within AT&T will only fund further back haul investments.

Combine that with the fact that they won't be the first one to build the first factory, nor the first one to build the second, they are at a huge advantage. They can look at the STC process that GoGo went through with their hardware providers, and jump over them to certification.

And, when it comes to the plane, if the systems can use the same antenna technology, or if the existing holes can be used to swap platforms, the carriers will just pick the one that gives them the best spiff for every subscription.

I am excited to see more competition. Let's hope that the end result is a product that is worth the price paid.

localady

After getting scalped by Gogo last night while trying to work with people in the office on a deadline I am thrilled to hear about competition...It would be ideal if people had their choice of carriers even in a plane.

AA_EXP09

I hope that they will make it free (or potentially an addon) for mobile phone customers already with AT&T.

PHX392

GOGO shares -30% last two days on the news, put a fork in it

passthetime

Given the length of Gogo contracts and the performance of high throughput satellite connectivity (proven by the ViaSat Exede Inflight WiFi service on JetBlue's rollout), there is definitely no guarantee that an upgraded air-to-ground system is going to have much impact in 2016. Even Gogo has decided to play catchup in their investment of satellite offerings.

HDQDD

I don't think they're done, but this is a good example of what happens when you stop innovating.

Kodak is another example of a company that failed to innovate and watched the digital camera market eat its lunch. Ironically Kodak actually had digital imagery as far back as 1975...

mmff

Especially when you stop before having a product that is reliable and does what it's supposed to do.

The difference being that Kodak was beaten by a revolutionary product with new features, and Gogo is taking a beating because their product never met the expectations of those who paid for it in the first place. Anecdotal, but IME the very existence of a competitor who does the job right will be enough to drive them out of business.

Besides, Kodak market cap peaked at ~ 30bn in 97; Gogo was never in the same league, even without adjusting for inflation.