AT&T announced that it will be teaming up with Honeywell to offer its clients high-speed in flight-internet. The company made the announcement on Monday and it appears that it will be competing with another in-flight internet provider, Gogo, the industry leader. Gogo’s shares dropped 14% following AT&T news. The new service promised by AT&T will use a 4G LTE network and Honeywell systems and hardware that will supply broadband service to commercial, business and general aviation passengers. The new service will also be available to airlines that seek a high-speed connection onboard.
Honeywell announced that the deal with AT&T will bring them about $1 billion in revenue in the next ten years. AT&T refused to say what their revenue from the agreement will be. Honeywell also said that the two parties have signed a letter of intent and are expecting to sign the formal contract in the nearest future.
The competitor, Gogo is currently providing similar “air-to-ground” cellular network based technology. Their services are used by about 80% of wired American commercial aircraft. This included Delta Air Lines and American Airlines. After Gogo’s shares dropped abruptly, Mike Small, the Chief Executive said that Gogo has been in the business for the last 20 years and it’s doing great. They have announced recently that they will be launching a service that will provide internet over water. This will use a dual antenna that will produce speeds of 70 mb per second, in comparison with their air-to-ground speed of 9.8 Mps.
Honeywell announced that the new AT&T system will provide super high-speed and a greater bandwidth than any other existing systems. They didn’t give out any approximate figures about the speed, though.
AT&T said that the upcoming airborne internet connectivity service will fit perfectly in their future strategy of adding internet connectivity to various applications, from homes to cars. AT&T currently has about 116 million subscribers in the US.
AT&T news – teaming up with Honeywell to bring in-flight high-speed internet
AT&T wants to provide greater internet speed and this would make it easier for pilots to communicate with each other and with the crew members. This will help provide real-time weather tracking and reports on plane parts.
What are your thoughts on the latest AT&T news? Do you use it as your internet provider or do you use others? Do you think that their partnership with Honeywell will be successful? Let us know what you think in the comment section below.