Just three weeks after touting an ambitious plan to develop a nationwide inflight Internet service with partner Honeywell, AT&T has canceled the launch of the 4G LTE network to conserve cash for other expansion initiatives.
The coast-to-coast wireless network would have provided competition to Gogo, so far the only ground-based inflight Internet service operating in North America. AT&T’s proposed partnership with Honeywell, discussed in detail by the two companies at last month’s NBAA Convention, would have started operated as early as next year.
“After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the inflight connectivity industry,” AT&T said in a statement.
AT&T's decision to scrap its plan for inflight Internet services was first reported by blogger Mary Kirby, creator of Runway Girl Network, who said the communications giant deemed the market to be "too risky."
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