Gogo, the guru of in-flight wireless Internet service, announced on Monday that it has hammered out an agreement to acquire the Airfone business unit from LiveTV, LLC, a wholly-owned subsidiary of JetBlue Airways Corporation. The main attraction for Gogo is the 1MHz spectrum license that will change hands as a result of the transaction, as it's currently held by LiveTV. So, what are Gogo's plans for the 1MHz spectrum?
It will be used to supplement Gogo's existing 3MHz license and, if everything goes to plan, will enhance the company's Air-to-Ground network. This should translate into improved connectivity service for both commercial airlines and business aircraft in the U.S.
"In many ways, Gogo has continued to expand its Air-to-Ground network and will soon launch ATG-4, which is expected to significantly improve capacity," said Gogo’s president and CEO Michael Small . "Acquiring the 1MHz spectrum license from LiveTV will play an integral role in our continued expansion activities and help us deliver a performance boost for end users."
The deal also gives Gogo control of Airfone's network infrastructure and back-office operational assets.
Image Credit: Gogo