Gogo's new 2KU service is definitely beneficial for travelers. But will it be good for investors? Time will tell.
It's great news that some Gogo customers can finally stream content from Netflix, but it will take a long time before more airlines update their planes with the latest technology.
Increased rivalry among in-flight Wi-Fi providers is likely good news for technology advancements that are expedited because of it and the consumers that will benefit from them.
Getting Internet onto a plane will likely always be a capital-intensive project, and Gogo's push for faster connectivity will require big investments from the company and from airlines.
Delta Air Lines upped its relationship with Gogo Wi-Fi, a resounding win for Gogo and its 2Ku satellite-based technology, which promises the end of the era of glacial inflight Internet.
Gogo had a set-back when American Airlines decided to open up its Wi-Fi bid to rival ViaSat, but this new Delta Air Lines commitment makes up for that.
What Gogo's new study shows is that there is a great appetite for connectivity in the air globally, where it is rare. In North America, Gogo says the market is saturated, demand is lower. Whether this demand converts from 'would like to have' to 'would use' will depend on the costs of service, both for airlines and for passengers who pay the bill.
If things keep evolving at this pace in the air, we're going to have a hard time finding excuses not to be connected to the office. Off-line vacations are the next big trend. Right that down.
We're in a development period now with in-flight Wi-Fi where are expectations can't be met by much of the existing infrastructure.