Tag - Inmarsat
A new joint venture between Deutsche Telekom and UK satellite company Inmarsat will allow passengers in flights across Europe to access the Internet in the future. The European Aviation Network promises to provide high speed Internet access during flights, using a combination of LTE-based connections from the ground and a network of satellites, similar to GoGo's existing service operating in the United States.
LightSquared on Friday changed its agreement with Inmarsat, with the latter effectively extending the deadline for the payments LightSquared is responsible for. The company has already missed its $56.25 million Phase 1 payment, with Phase 2 due on April 1, 2014. The extension will give LightSquared time to try and resolve regulatory issues that are keeping it from launching its 4G LTE network.
LightSquared has failed to make a $56.25 million payment to UK satellite operator Inmarsat. The payment was to be the first of several payments, totaling $175 million for the year to be payed by LightSquared to Inmarsat, in a deal struck between the two in 2007, for access to spectrum. If LightSquared doesn't pay, Inmarsat can legally end the deal.
Gogo took the first steps towards having a truly worldwide option for Internet access during airline flights. A deal with Inmarsat will see its Global Xpress satellite data used for international flights during those points when Gogo's country-based cellular coverage is no longer in range. It would potentially be faster than the land service at as much as 50Mbps; the EVDO link in the US stops at 3.1Mbps.