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AT&T will take a more grounded approach with its wireless network services.
AT&T
The Dallas telecommunications provider confirmed on Monday that it was scrapping its plans to provide 4G LTE services to passengers on planes. Instead, the company said it would focus on its recently announced plans to acquire Mexican wireless carrier Iusacell. The news was first reported by aviation blog RunwayGirl Network (subscription required).
AT&T’s ambitious plans would have extended its wireless network to the skies, giving it a clear edge among its competitors. It would have also pit it against GoGo Wireless, which offers Wi-Fi service on select flights in the US, and had promised even higher speeds through LTE. But instead, the company will be focuses on its push into Mexico, as well as its planned acquisition of satellite TV provider DirecTV.
“We are focusing our capital on transformative investments, such as our Iusacell and DIRECTV deals,” the company said in a statement.
AT&T is spending $2.5 billion on Iusacell and $48.5 billion on DirecTV.
AT&T announced its plans to enter the skies back in April, and had projected that it would launch its service by late 2015.
“We expect this service to transform connectivity in the aviation industry — we are truly mobilizing the sky,” said Chief Strategy Officer John Stankey in a statement issued after the announcement.
AT&T shares slipped 0.3 percent to $35.03 in after-hours trading after rising 0.6 percent to $35.12 in the regular session. GoGo rose slightly in late trading after jumping 11 percent to $18.40 in the regular session.
