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AT&T to Launch Inflight Internet Product, Challenge GoGo in Domestic Market

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Earlier this afternoon, AT&T announced that it was partnering with Honeywell to bring a new inflight internet product to the nation's skies. Based off of the carrier's LTE network, the system would take advantage of AT&T's current infrastructure to deliver 4G speeds from the ground to a local in-flight network. Passengers won't be able to connect to their mobile phone network for calls or data usage, but the transfer speeds will be much faster than the current mainstream Gogo technology -- around that of a "home or small office" according to Honeywell's Bill Kircos.

As many frequent travelers know, Gogo's current air-to-ground (ATG) network is hampered by limited bandwidth. Only about 6% of users on flights equipped with Gogo WiFi actually use the service -- any more would result in the network slowing to an unusable crawl. So any improvement to the current bandwidth landscape would be welcomed by consumers.

(Photo credit: Anthony Quintano)

A new series of technologies currently being shepherded into the market by Gogo, however, may help even up the race. ATG-4, which was introduced in 2012, is currently in operation among a portion of aircraft across the country and is expanding. Further plans to introduce ground-to-orbit (GTO) and 2Ku (full-satellite) service from Gogo through 2015 will allow connections internationally, over water and at speeds of up to 70Mb/s. Though AT&T was not specific in the speed of its network in its official statement, their typical mobile-phone 4G connections can run anywhere between 5 and 22Mbps, according to PC Mag.

Further complicating the issue is the raft of contracts currently in place with Gogo. According to Michael Small, the CEO of Gogo, most of the carrier's contracts with airlines are in place for ten years. During that time, Gogo will be able to upgrade its technologies and add further incentive to keep carriers engaged. Airlines also have to consider the cost of swapping out hardware such as antennas and computers when switching technology providers.

Still, the competition that AT&T and Honeywell bring to the market will be a welcome addition for most consumers. With many current travelers complaining about the cost of in-flight internet, another provider will help drive down the price for consumers and spur innovation. And for their part, Gogo seems to welcome the competition.

"We pioneered this industry. We've been at it for two decades and its gratifying that the biggest companies want in right now," Small tells me.

AT&T's plans for its network to be available in late 2015.