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Thu, May 01, 2014

AT&T Takes Aim At Gogo's In-Flight Wireless Business

Hopes To Launch 4G Service On Airliners In 2015

News that AT&T is looking to launch an in-flight 4G LTE wireless service for airliners in 2015 caused Gogo's stock to tumble on Tuesday. The telephone giant claims that its plan would "transform airborne connectivity."

CNN Money reports that AT&T will partner with Honeywell to develop the technology that is aimed directly at Gogo, which uses slower 3G technology. The announcement caused Gogo's stock to fall 21% on Tuesday. Gogo's service has also risen in price, according to the report.

AT&T plans to offer the service first only in the continental U.S. It's stated goal is to improve the speed of in-flight connectivity, but the company has not announced any airline partners or pricing plans.

Mashable.com reports that Gogo says it believes its service will be able to compete with AT&T, and other companies that may wish to enter the marketplace. A Gogo spokesman said the prospective competition "validates what a great business Gogo created that some of the largest businesses in the world want to be part of it."

FMI: www.att.net, www.gogo.com

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