5G System on Track with Chip Fabrication Underway
BROOMFIELD, Colo., Jan. 25, 2023 /PRNewswire/ -- The chip needed for Gogo 5G recently passed a critical design review and is now in fabrication with delivery expected midyear.
"The critical design review was an important process and milestone before entering into the manufacturing cycle," said Mike Syverson, Gogo's senior vice president of engineering. "Given the challenges that our supplier experienced in 2022, we felt that passing this amount of review would give us the confidence necessary to deliver 5G in 2023."
Gogo Business Aviation's (NASDAQ: GOGO) 5G service is expected to launch commercially in the fourth quarter of 2023.
Gogo 5G is expected to provide ~25 Mbps on average, with peak speeds in the 75-80 Mbps range. It has been designed to deliver high throughput with very low latency to address the increasing demand for data-heavy interactive services like video conferencing, live TV and gaming.
Gogo's AVANCE platform, with its multi-bearer capability and software-centric design, allows customers to future-proof their inflight connectivity investments, with easy upgrade paths to both Gogo 5G and Gogo's global Low-Earth Orbit (LEO) satellite-based product in the future.
The first-article Supplemental Type Certification (STC) for the 5G belly-mounted MB13 antennas and the X3 (5G) LRU have been completed. That STC will be amended once the 5G chip becomes available.
Gogo is working closely with each of the business aviation original equipment manufacturers and several authorized Gogo dealers to develop additional STCs that will cover more than 30 aircraft models in the aftermarket or from the factory.
Customers who want Gogo 5G service can install the AVANCE L5 system today with full 5G provisions and operate on Gogo's 4G network until the X3 LRU is available. Once the X3 is ready, it can be installed quickly and 5G service can begin immediately, saving downtime and expenses.
Gogo is offering significant incentives to anyone who installs the 5G provisional kit with the AVANCE L5.
In October, 2022, Gogo completed its 5G nationwide network, and plans to expand 5G into Canada in 2023.
Gogo is the world's largest provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment and voice solutions. Gogo's products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.
As of Sept. 30, 2022, Gogo reported 3,079 business aircraft flying with Gogo's AVANCE L5 or L3 system installed, 6,777 aircraft flying with its ATG systems onboard, and 4,484 aircraft with narrowband satellite connectivity installed. Connect with us at business.gogoair.com.
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future technologies, including our 5G system, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words "anticipate," "assume," "believe," "budget," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, our reliance on third parties for equipment and our ability to commercially launch Gogo 5G services in the fourth quarter of 2023.
Additional information concerning these and other factors can be found under the caption "Risk Factors" in our annual report on Form 10-K for the year ended Dec. 31, 2021 as filed with the Securities and Exchange Commission ("SEC") on March 3, 2022, and in our quarterly reports on Form 10-Q as filed with the SEC on May 5, 2022 and August 5,2022, and Nov. 3, 2022.
Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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