United’s announcement that they’ve selected Panasonic Avionics Corporation is a disappointment. As the leader in the domestic marketplace, with more than 1,200 commercial aircraft installed, Gogo is the here and now, and we believe our current Air to Ground service is superior in many ways to Ku satellite technologies. We’re also confident that our technology roadmap will allow us to incorporate a full suite of technology solutions – including our next generation ATG-4 and Ka satellite-based solutions – that, we believe, will outperform Ku satellite and will allow Gogo to be the only provider able to meet the full-fleet connectivity needs of our airline partners on a cost-effective basis, including regional jets, mainline fleets and international service.
For our current airline partners who are up and running with Gogo’s current ATG solution, we will offer a simple upgrade path to ATG-4 in the first half of 2012. ATG-4 will offer them the same benefits of our current ATG technology – inexpensive, light weight, easy to install – at up to four times current bandwidth performance levels. We are confident that this will prove to be a superior option to Ku domestically and offer our airline partners a solution that will be much faster to market. In terms of satellite solutions, Gogo expects that global Ka will represent a significant improvement over Ku in terms of capacity, cost and coverage. We believe, Ku represents a less attractive interim solution that will be surpassed by Ka in the near to mid-term.
Ultimately, though, we know that customers don’t care what technology is utilized. Gogo customers have been able to successfully connect in-flight for many years. We are committed to not only making sure they stay connected, but that we are providing the best connectivity solutions to them now and in the future.
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