Tuesday, April 29, 2014
AT&T is looking to expand the reach of its wireless network to devices in the sky. On Monday, the company announced plans to provide in-flight Internet connections for some airlines.
The company said that by late 2015, it would build a new air-to-ground network based on 4G LTE, the same type of cellular technology that many of the latest smartphones use to connect to the Internet.
AT&T will be competing with other in-flight Internet providers like Gogo and Row 44. Many fliers have complained that the connection is sluggish for those services. AT&T said that its in-flight Internet connection would be fast because the company had the expertise and resources, like wireless spectrum, to provide a stronger network.
A major limitation of an air-to-ground network is that devices lose the Internet connection as soon as the plane is over a large body of water, which is why many international flights still lack Wi-Fi. John T. Stankey, AT&T’s chief strategy officer, said in an interview that the company would address this, too. The company plans to team up with a satellite provider so that airplanes can pull an Internet connection from satellites when they are flying over water. The name of the satellite provider will be announced later, he said.
“We think there’s an unmet need,” Mr. Stankey said. “As we studied the market and we’ve interviewed passengers and evaluated what they’re willing to pay, we think there’s an opportunity to get more people using the service at a more affordable price.”
AT&T, the No. 2 American wireless carrier after Verizon Wireless, is hugely profitable. But for many phone carriers, the growth of new customer subscriptions has significantly slowed as the smartphone market has become saturated. That is why AT&T has been exploring different avenues to make money, like Digital Life, a connected home security system, and partnerships with automakers to sell mobile data plans for cars.
AT&T said it would announce partners and pricing for its in-flight Internet service before it becomes available.
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