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Judge says no monopoly on in-flight internet prices, tosses case against GoGo

Jeff John Roberts — Thu, 11 Apr 2013 00:19:04 +0000

A federal judge threw out an anti-trust case brought by airlines passengers who accuse internet provider GoGo of illegally raising the price of in-flight service to rates as high as $17.95.

In a decision issued Wednesday in San Francisco, US District Judge Edward Chen ruled that GoGo, despite supplying 85% of all internet-equipped airplanes in the US, does not have a monopoly. The company’s customers include Alaska Airlines, American Airlines, Delta, US Airways, and Virgin America.

In throwing out the case, Chen accepted GoGo’s argument that it doesn’t have dominant market share because it covers only 16% of all US airplanes, and it’s possible for the remaining planes, which do not offer internet, to sign up with a competing service provider. The internet contracts are sold on airplane-by-airplane basis, and not across entire airlines.

The passengers sued GoGo in October, claiming that competitor Row44 charges only $5 for an entire flight of internet service but that airlines can’t drop GoGo because of ten-year contracts that lock them in. They also argue that GoGo’s internet technology is inferior because it relies on ground-to-air tower transmission rather than the satellite service offered by Row44 and Jet Blue’s ViaSat service.

The decision also agreed to GoGo’s request to acknowledge that a third provider, Panasonic, is entering the market with satellite service on United.

Chen dismissed the case without prejudice, meaning the passengers can try to bring up new facts to show that GoGo does have a monopoly. You can read the decision yourself below.

To understand the science of in-flight internet, see ”Why your in-flight WiFi is slow and expensive” by my colleague Stacey Higginbotham.

GoGo Dismissal

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For LTE sky may not be the limit

Om Malik — Fri, 02 Nov 2012 16:58:17 +0000

Most of us who fly on commercial Internet-enabled flights, struggle with the connections, and slow speeds result in surly tweets. So when I read that Ericsson has successfully tested 4G connections on a moving jet-plane, I am hopeful about the future.

Ericsson tested a LTE/4G internet connection on board of a jet plane flying at speeds of 700 kilometers per hour (435 mph) at low altitiudes (300 meters above ground) and were able to get about 19 megabits per second. Given that commercial planes fly at over approximately 9100 meters (or about 30,000 feet), the test is no where near the real life, but still notable.

The test was conducted on two laptops with LTE dongles. A web cam was connected to the PCs and the video was streamed to the ground team. The video stream worked well, barring a few incidents when the connections were handed over from one base-station to another. The handover from two base stations was pretty good even at 500 km/h.

Clearly, we are not going to see this in commercial deployments anytime soon, but there is one upside to it all: LTE/4G will work really well on ultra high-speed trains especially the kind in Europe and Japan.

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Qualcomm is exploring the last 4G frontier: The sky

Kevin Fitchard — Mon, 06 Feb 2012 16:07:36 +0000

Qualcomm’s wireless network technologies already dominate the mobile broadband networks on U.S. land, now it wants to dominate the skies above it. Qualcomm is petitioning the Federal Communications Commission to clear a huge swathe of spectrum in the higher frequencies for a network that could support the eye-popping bandwidth of 300 Gbps. The devices such a network would connect wouldn’t be smartphones or laptops – at least not directly – but airplanes.

FierceWireless’ Mike Dano dug up the FCC filings and wrote an excellent, detailed report you can find here. Here’s a summary of the major points:

The proposed network, which Qualcomm is calling Next-Gen AG, would make use of 500 MHz of spectrum in the 14 GHz band. That’s a huge amount – more than all of the nationwide bandwidth available to the entire U.S. cellular industry today – but at such high frequencies, available airwaves are plentiful. The problem is they’re useless for ground-based cellular networks since those airwaves require enormous power to propagate any reasonable distance. Your phone doesn’t have the juice to communicate with a distant tower at higher frequencies, but an airplane does.
While the Next Gen-AG’s huge carrier bandwidths would allow theoretical speeds of 300 Gbps, you have to remember that the cellular network is shared capacity. Qualcomm proposes that only 150 towers anchored to the earth would be necessary, compared to the tens of thousands required for a terrestrial network. A single cell’s 300 gigs of capacity would be shared by hundreds of airplanes at any given moment, and airlines would then further subdivide that capacity. For instance, they could use the network to offer on-demand entertainment to each seat and sell bandwidth to individual passengers via Wi-Fi.
That still leaves a lot of capacity for each plane. Right now in-flight connectivity services like Gogo utilize CDMA 3G carriers of 3 MHz in size. That’s a decent data connection for a single laptop or smartphone, but not for hundreds. The new network would use wideband OFDMA technologies similar to the TD-LTE networks Clearwire and Sprint plan to build. Basically, Qualcomm wants to replace the 3G and satellite networks linking airplanes today with 4G networks on steroids.

It sounds like a great idea, but the question as to whether passengers on airplanes want access to such awesome bandwidth – or are at least willing to pay for it. According to USA Today, in-flight Wi-Fi use is increasing gradually, but it’s hardly blowing up. Business travelers are choosing to relax on flights rather than remain in constant contact with their companies. The $10 to $15 cost of a Wi-Fi link for a single leg can also be a turn off.

Still, perceptions could change as more connected entertainment devices like tablets are sold. A business traveler may want to sign out of e-mail, but he might not feel the same about his cloud-based music library or movie connection. And ultra-high-capacity networks like Next-Gen AG could drive in-flight connection costs down considerably due to its massive economies of scale.

Photo courtesy of Flickr user davipt

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In-flight Wi-Fi provider Gogo poised for $100M IPO take-off

Ryan Kim — Fri, 23 Dec 2011 15:57:17 +0000

Gogo, an in-flight Wi-fi company, has become the dominant provider of connectivity in the North American skies, and now it’s looking to raise up to $100 million in an IPO. The company plans to use the money to generate working capital and address other general corporate needs. You can take a look at Gogo’s S-1 filing here.

As of Sept. 30, Gogo is installed on 1,177 planes, representing 85 percent of the Internet-equipped commercial planes in North America. It has inked deals with nine of the ten North American airlines that provide connectivity to their passengers. Since launching in 2008, Gogo has enabled 15 million in-flight sessions to more than 4.4 million unique users.

Through the first three quarters of this year, Gogo has generated $113.8 million in revenue, an 89 percent increase over the same period in 2010. It has also posted an operating loss of $26.5 million, down from $66.4 million from the previous year. Almost all of the planes Gogo is equipped on are on 10-year contracts, and Gogo has contracts to be installed on 525 additional aircraft.

Gogo is poised to capitalize on the growth in air travel, the increasing dependence on connectivity everywhere and the growing willingness of consumers to pay for Wi-Fi access in the skies. Gogo said only 16 percent of commercial aircraft in North American and 6 percent of commercial aircraft internationally were equipped with in-flight Wi-Fi last year. And with the increasing use of Wi-Fi enabled devices like smartphones and tablets, the demand for in-flight connectivity is only growing.

Looking ahead, Gogo plans to build out its footprint, offer more streaming content and e-commerce opportunities and upgrade its air-to-ground and satellite technology. And it plans to expand internationally, including through a partnership with Inmarsat’s Global Xpress satellite broadband service.

Risk factors include Gogo’s reliance on good relationships with healthy airlines. Currently, Delta represents 45 percent of revenue this year. The company also needs to make good on technology improvements to ensure it can stay ahead of demand. It’s already experiencing capacity constraints at times.

Gogo did not say how many shares it plans to sell or its expected price. But it’s another sign that the IPO market, while hurting, is still moving forward thanks to Groupon , Zynga and others.

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Smartphones, tablets changing in-flight entertainment

Kevin C. Tofel — Tue, 04 Oct 2011 15:11:59 +0000

Wireless Internet access on planes is helping make those long flights bearable, but so too are the influx of personal media devices such as smartphones and tablets. A BBC video report shows that the airline industry sees even more opportunity for both revenue and improved flying experiences through advanced in-flight entertainment that embraces these handsets and slates.

The BBC video can’t be embedded or shared, so you’ll have to click here to directly view it. But it’s worth it, as I learned a few new tidbits about this industry segment’s history and got a glimpse of the future:

In the U.S., 1,200 planes have Internet connectivity.
Only 100 flights outside the U.S. have it, which sounds low to me.
Old aircraft had multiple projectors with film that ran the length of the cabin; you could run to the back of the plane to view the movie ending again.
Fitting one aircraft with in-flight entertainment equipment can run up to $8 million.
Piping content over Wi-Fi in a plane eliminates wires and video equipment, which lightens the aircraft and saves fuel.
Airlines are moving away from centralized systems that control all screens to displays that work independently.

Ironically, the USB port may be the most innovative aspect for future in-flight systems. Why? Consumers can, and often do, carry their own media content on planes through their smartphones or tablets. Through USB ports, that content can be displayed on a larger screen built into the seat. There’s even more potential in the reverse direction though.

Airlines could sell or rent video content through the in-flight system that can be downloaded back to personal devices. That would allow flyers to pause the movie and watch it later, even once on the ground at their final destination. Airlines could then receive a cut of the movie cost, even though the movie may not be consumed on the plane.

Even with the influx of personal screens on flights, don’t expect airlines to stop adding displays in the back of seats. Not everyone has a smartphone or tablet yet, for starters. Plus, the addition of a connected screen in a seat back offers revenue opportunities outside media sales; instead of waiting for the cart of drinks or snacks, a personal touchscreen means your next food purchase is just a finger tap away.

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Hipmunk knows you’re addicted to the web

Stacey Higginbotham — Wed, 29 Jun 2011 14:00:26 +0000

Hipmunk, the hot flight-finding service whose user experience has launched a thousand blog posts, has added in-flight Wi-Fi as a new metric for travelers. So now, when I’m searching for one-stop, on-time flights between Austin and San Francisco, I know which ones offer Wi-Fi (none do). Sure, this is an indication of how deep the web has sunk its talons into us, but that ship has sailed (or perhaps that flight has taken off), and working while on flights has become pretty much the standard in many offices.

So viva the in-flight Wi-Fi indicators, and let’s get JetBlue on board with this trend. Also, for those who travel often and have a Boingo subscription, check out their deal with GoGo Internet. Now on flights offered by American Airlines, Delta, Alaska Airlines, U.S. Airways and others, Boingo users can get online using their Boingo log in, though they can’t pay Boingo prices. In-flight Wi-Fi is still a luxury item, it seems.

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Will Terrorists Take our In-Flight Wi-Fi?

Ryan Kim — Wed, 03 Nov 2010 16:06:33 +0000

Just when Wi-Fi is rolling out on more and more planes, could terrorists be poised to steal away our in-flight wireless?

That’s the suspicion of security expert Roland Alford, managing director of explosives consultancy firm Alford Technologies, who believes the cargo bomb plot last week may prompt authorities to reexamine the use of in-flight Wi-Fi. The bombs, hidden inside printer cartridges, included cell phone components that authorities believe may have been used as timers for detonation.

Alford believes phones can also used for remote detonation if they connect over VoIP. His colleague also suggested it could provide a suicide bomber on board an easy way to detonate a bomb in the cargo hold. “In-flight Wi-Fi “gives a bomber lots of options for contacting a device on an aircraft,” Alford told New Scientist.

But don’t get too worried, says Ken Biba, general manager and CTO of Novarum, a wireless consultancy. He said there are already plenty of ways to construct point-to-point networks within a plane though that it’s still far more difficult than utilizing a timer. Someone could try to connect over Bluetooth or bring on their own radio transmitter to trigger a bomb, though it would be sophisticated and would still not guarantee success, Biba said.

On-board Wi-Fi systems also have firewalls that prevent in-bound calls, which should prevent the threat of remote detonations, he said. In-flight Wi-Fi also requires a credit card payment, another hurdle.

Biba said the best line of defense is to monitor explosives, rather than crack down on wireless connectivity, which is likely too complicated an avenue for terrorists to exploit. “The greater the difficulty to implement something, the less likely it is to happen,” Biba said. “A timer is more reliable and simpler doesn’t require a network to operate.”

As long as we’re living with terrorists, there’s always a threat of something happening. For now though, I’m going to listen to Biba and pray that in-flight Wi-Fi remains a force for good in the world.

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Urban Wolf a Near-Perfect 21st Century Thriller

Liz Shannon Miller — Fri, 14 May 2010 00:00:28 +0000

When I saw Urban Wolf at last year’s ITVFest, it was being screened as part of an international drama block (sharing the slot with Oz Girl) — which worked, because the show is a truly international production.

Created by French director Laurent Touil Tartour, starring Hong Kong actor Vincent Sze, and now being distributed in America by Sony’s Crackle, Urban Wolf is a gripping thriller that stands out as proudly unique.

From Crackle: Forces

Some of Wolf‘s execution might emulate classic 1970s thrillers, but the concept is pure 21st century, playing nimbly with issues of privacy and paranoia. The set-up seems simple initially — American tourist Justin Case arrives in Paris only to find himself under surveillance by a deadly foe. But over the show’s 15 three-minute episodes, the mystery of who is watching Justin and why grows in complexity, as does the reason why Justin is in Paris to begin with.

Deliberately produced with the bare minimum of dialogue (making it possible for the show to play internationally with ease), sound design ends up playing a key role in the show’s success, communicating aurally what words make unnecessary. When a director can make even the eating of a potato chip seem malevolent (as occurs in the yet-to-premiere episode 7), you know you’ve watching something special.

However, while style and production value matter, a project like this lives or dies with its lead actor. Fortunately, Sze is an engaging lead who manages to draw you in even when maintaining a poker face, though frankly he’s a better silent actor than a speaking one. (Fun bit of trivia: While in the show, Sze’s character claims not to speak French, in reality Sze moved to France at the age of 3 before returning to Hong Kong as an adult.)

Episodes 1-5 were released today as a block, which was a wise choice given that the end of episode 5 offers the first big clue to why Justin is being followed. But the remaining 10 episodes will be released on a daily basis.

If I were to critique anything about Wolf, it might be that the show plays best when viewed all at once, as opposed to an episode-by-episode basis — the morsels of story provided by each episode individually are almost too teasing at times.

But that just means I’d recommend stopping by Crackle on May 27, when the finale will premiere — because the last two episodes include a twist that takes the series to a new and dark place, one that practically demands a season 2.

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iPass Adds In-Flight Wi-Fi

Nancy Nally — Thu, 22 Apr 2010 14:00:19 +0000

The question of whether the Internet should extend into our lives when we are cruising at 30,000 feet has been a heavily debated one. Should airplane cabins be bastions of quiet sanctity from the deluge of information and work that follows us everywhere? Or should we use in-flight Wi-Fi to take advantage of every possible productive moment in our lives, even while traveling?

iPass has just weighed in on which side of that debate its enterprise clients fall on. The enterprise mobility service just announced that it has added Aircell to its available network of services. This means that iPass Mobile Network users will be able to connect to Gogo in-flight Wi-Fi, while staying within the iPass network. Gogo in-flight Wi-Fi is available on all AirTran and Virgin America flights, and on limited American Airlines, Delta, US Airways, United and Air Canada flights. Customers will be charged $4.95 for flights less than 1.5 hours, $9.95 for flights 1.5 to three hours, and $12.95 for flights more than three hours long for using Gogo through iPass.

In the product announcement, iPass explained that this will benefit employees of iPass Mobile Network customers, as connecting to Gogo will be more convenient with iPass, since they will be able to avoid the multiple steps of paying via credit card and filing expense reports after the fact for reimbursement. For enterprises, it should simplify accounting, allow companies access to detailed reports on in-flight network usage, and allow enforcement of VPN and security policies.

For regular users of other airlines, iPass says it expects to add more in-flight Wi-Fi services to its offering in 2010.

iPass leaves no doubt in its announcement that mobile workers are now expected to be working constantly when traveling — even when they are at 30,000 feet:

“The age of inflight Internet connectivity is here and is a huge productivity win for business travelers who need to stay connected and work securely online while in the air,” said Evan Kaplan, president and CEO of iPass. “Airplanes have been the last bastion of mobile worker downtime and iPass and Gogo Inflight Internet provider Aircell are here to close this gap in a way that meets the simplicity, visibility and control requirements of the enterprise.”

Say goodbye to the days of settling back in your seat and watching a movie or reading a book and getting some recharging before that big meeting while you cruise at 30,000 feet. When enterprises consider in-flight Wi-Fi a needed function of their mobile networks, the writing is obviously on the wall (or in the clouds): your airplane seat is now an extension of your office.

Does in-flight Wi-Fi make you feel obligated to work? Would that change if it were part of your employer’s mobile network?

US Airways Adds Gogo Inflight Internet Access

Om Malik — Mon, 29 Mar 2010 20:53:19 +0000

US Airways has become the latest carrier to launch Aircell’s Gogo Inflight Internet service. The service is currently available on just five US Airways’ planes but will be fully deployed on all 51 A321s in its fleet by June 1.

In addition to US Airways, Gogo is currently available on all AirTran Airways and Virgin America flights. It is also available on Air Canada, American Airlines, Delta Airlines and United Airlines flights.

Gogo, despite launching on multiple airlines, has been struggling to grow. The performance of the service on many popular routes such as New York-San Francisco has degraded considerably. I frankly think paying $12.95 for an ultra-slow connection for effectively four hours of flight time is a bum deal.

I’m also pretty sure that as the iPad launches and gains in popularity, we are only going to see further depreciation of the connection quality. Aircell recently raised $176 million in funding from an undisclosed group of investors.