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GoGo Shares Up Big After AT&T Shelves In-Flight LTE PLans

By Andrew Berg | November 11, 2014

AT&T’s LTE network will apparently not be taking flight, but things are looking up at GoGo.  

Runway Girl Network reported Monday, said that AT&T is abandoning plans that it announced back in April to bring in-flight LTE network service to airlines in 2015. 

AT&T had previously announced that it was preparing to build an “air-to-ground network” to provide the connectivity, which at the time it said would be faster and more reliable than current in-flight Wi-Fi offerings. AT&T also pointed to the potential for improved communications between the plane and the ground through transmission of real-time aircraft data.

AT&T had tapped Honeywell as a partner in building out the network. AT&T confirmed the change of heart in an emailed statement. 

“Last week we announced our intent to acquire lusacell, a wireless company in Mexico. At the same time, and after a thorough review of our investment portfolio, the company decided to no longer pursue entry into the in-flight connectivity industry,” the company said. “We are focusing our capital on transformative investments, such as our lusacell and DIRECTV deals.

Current in-flight Wi-Fi provider GoGo got a big boost from the news. Shares rose significantly to over $17, following a heavy dip after GoGo reported third-quarter earings on Monday. 

When AT&T announced its plans back in April, shares of GoGo tanked nearly 20 percent on news of AT&T’s plans. 

READ MORE: AT&T ANNOUNCES IN-FLIGHT LTE PLANS


Filed Under: Carriers

 

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