Seeking Alpha

AT&T plans to launch in-flight Wi-Fi service; Gogo plummets

  • AT&T (T) announces plans to offer U.S. in-flight Wi-Fi service courtesy of a 4G air-to-ground network leveraging spectrum the carrier already owns.
  • Ma Bell says the service will be "available as soon as late 2015," and doesn't expect capex related to the effort to be "material."
  • GOGO investors aren't pleased; shares of the in-flight Wi-Fi leader are down 19.5% AH.
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Comments (24)
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    wow, amazing news!!! almost a 4pt DROP intra-day?! $GOGO 18.37 dwn to 14.60 now??? whoa..
    28 Apr 2014, 04:47 PM Reply Like
  • name999
    , contributor
    Comments (175) | Send Message
     
    Whoops! An 800-pound gorilla just entered the game.
    28 Apr 2014, 04:48 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    Hah, a whole bunch of 800lbs at&t wi-fi Apes at that! Wow, holey wi-fi Gogooo Goliath Batman, what to do $GOGO ..
    28 Apr 2014, 04:52 PM Reply Like
  • markethost
    , contributor
    Comments (72) | Send Message
     
    OH NO I own it! Ouch
    28 Apr 2014, 04:53 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    SOLD OFF at 24, almost bought again at 19....waiting for this drop! Time to dig into GOGO and buy more now?! Re-position..
    28 Apr 2014, 04:58 PM Reply Like
  • leopardtrader
    , contributor
    Comments (1772) | Send Message
     
    ATT dappling into in-flight entertainment is clearly a misplacement of priority. There is no competitive advantage here on a global basis. Though they will eventually get rigorous permit by FCC eventually but it is not just that easy or imminent. The selloff in GOGO is clearly overdone and with little or no information about the business model
    28 Apr 2014, 05:13 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9273) | Send Message
     
    How's VEEV doing? :-)
    28 Apr 2014, 05:30 PM Reply Like
  • leopardtrader
    , contributor
    Comments (1772) | Send Message
     
    What about it? Dont be childish. I gained once in VEEV and lost the second bet. Net positive. But it is even no crime to be wrong. How about your bombastic headlines and shorts including TSLA that you failed woefully. Remember VEEV could still get to lifetime highs this year ..so I dont even get you.
    28 Apr 2014, 06:02 PM Reply Like
  • Continental Kid
    , contributor
    Comments (228) | Send Message
     
    Why is it a misplaced priority...?....ATT delivers data period....as does VZ....ever notice how everyone is staring at their phones as much as they are talking...?......T is maneuvering to expand revenue streams...that's the nature of this business cable, internet, and WI FI.......they stated that the CAP EX cost was immaterial....they should explore all options ..... as far as their product will reach

     

    best of luck to all......long T for a very long time now ...
    28 Apr 2014, 07:58 PM Reply Like
  • newnnly
    , contributor
    Comments (258) | Send Message
     
    Go go at&t
    28 Apr 2014, 06:01 PM Reply Like
  • Patent News
    , contributor
    Comments (1416) | Send Message
     
    gogo is horrible and overpriced!!

     

    lets get some competition going.

     

    free wifi trials in flights will put gogo scam out of business.
    28 Apr 2014, 06:31 PM Reply Like
  • crewcut519
    , contributor
    Comments (2) | Send Message
     
    It would have been far better move for AT&T to buy or partner with Gogo. AT&T is years from Gogo. Plus they are leaving the door open for Verizon or Sprint to buy or partner with Gogo
    28 Apr 2014, 08:42 PM Reply Like
  • Continental Kid
    , contributor
    Comments (228) | Send Message
     
    Years from GOGO....???...you realize T is in the business of delivering DATA and was doing it before GOGO existed...I wonder sometimes .....not real hard to set up a router on a aircraft....and T has the money and experience to do it .....notice the reaction in GOGO since the announcement.....

     

    best of luck to all....long T well before this announcement.....

     

    direct tv should also pay heed as they have most of the in flight entertainment for now.....and provide a good service...but competition is coming....
    28 Apr 2014, 09:39 PM Reply Like
  • crewcut519
    , contributor
    Comments (2) | Send Message
     
    Not real hard to set up a router on a aircraft? Just to install wifi on a 737 it takes 25 to 30 mechanics 3 days working 24 hours a day. Plus engineering support from Gogo and the airline. The 737 is one of the easier ones to install wifi on. Then you got to get the FAA to approve it. Yes, AT&T is years from Gogo.
    28 Apr 2014, 10:49 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    Bwahhhhh haha.. Thts too funnny!
    28 Apr 2014, 10:52 PM Reply Like
  • just read the instructions
    , contributor
    Comments (267) | Send Message
     
    Conti-Kid,
    why..... do..you..write like...
    this...?
    Do you hate the concept of a sentence?
    No offence meant ;-)
    29 Apr 2014, 08:36 AM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    $GOGO buy-in 15 & watch it run upto 20-21.. Any thoughts on $GTAT vs. $GLW?
    28 Apr 2014, 09:41 PM Reply Like
  • yossarian628
    , contributor
    Comment (1) | Send Message
     
    Which airline is going to go with AT&T? All the majors have a Wi-Fi provider already. This news would have been relevant 5 years ago.
    29 Apr 2014, 07:00 AM Reply Like
  • newnnly
    , contributor
    Comments (258) | Send Message
     
    yossarian628- I think that all depends on what AT&T will offer the airlines who choose to use them. It all comes down to price does it not? AT&T has demonstrated it's willingness as of late to leverage against other carriers in the pricing arena on the ground. Why not in flight?
    29 Apr 2014, 06:52 PM Reply Like
  • Greyfox070
    , contributor
    Comments (85) | Send Message
     
    Have to agree with yossarian here:

     

    Most major (US) carriers already have all the equipment installed and have committed to an inflight Wi-Fi provider. Its a pretty significant expense to install this equipment across a large fleet.

     

    Also, I have my doubts carriers currently using satellite are going to swap to the new $T system, which is ground based and requires a totally new setup.

     

    Not sure what $T is after here...this is a fairly established market. I think this could be a boondoggle ala Boeing's Connexxion product. Not sure if GOGO sell-off is overdone but sure looks like an unwarranted move.

     

    Disclosure: Long $T. No GOGO position. I work for a major US airline with WiFi installed.
    29 Apr 2014, 11:42 AM Reply Like
  • Tedhoffman
    , contributor
    Comments (15) | Send Message
     
    Doubt too many airlines will wait years for T to establish a slower ground based operation. A buyout of GOGO or VSAT would accelerate their plans. It's all conjecture though...
    29 Apr 2014, 12:24 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    With all this latest information, from this week's news, who can target $GOGO now? Will this small CO ever climb back upto a 30pt stock? Or slide dwn to 10..
    29 Apr 2014, 03:09 PM Reply Like
  • Tedhoffman
    , contributor
    Comments (15) | Send Message
     
    Interesting article:
    http://onforb.es/1kbYMZl
    29 Apr 2014, 03:32 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    http://on.recode.net/1...
    29 Apr 2014, 03:43 PM Reply Like
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