Gogo, the world’s leading provider of broadband connectivity services for the business aviation market, has recently announced an update on its highly anticipated 5G launch. Gogo 5G launch

While the company had to face a delay, it remains confident in its ability to deliver a superior 5G network exclusively for business aviation.

The Delay and Its Implications

Gogo’s President and Chief Operating Officer, Sergio Aguirre, expressed disappointment over the delay but reassured stakeholders about the company’s commitment to delivering a 5G network that outperforms any competitive air-to-ground (ATG) or geosynchronous (GEO) satellite solutions.

The delay was caused by a design error in a non-5G component of the chip, designed by a third-party subcontractor. Despite this setback, Gogo is working closely with its suppliers to devise definitive plans and expects to deliver Gogo 5G around mid-year 2024.

Achievements and Future Plans Gogo 5G launch

Despite the delay, Gogo has made significant strides toward the launch of its 5G network. The company has successfully launched the Gogo 5G antenna and a 150-site ground-based network in the United States and Canada. It continues to take 5G orders and is collaborating with major Original Equipment Manufacturers (OEMs) to make 5G a line-fit option.

Customers can also pre-provision with 5G antennas and harnesses, enabling operators to quickly install the 5G box once the chip is available. Gogo 5G is expected to provide an average speed of ~25 Mbps, with peak speeds in the 75-80 Mbps range, offering high throughput with very low latency.

Financial Impact

The delay in the 5G launch is anticipated to reduce Gogo’s 2023 revenue by approximately $7 million and defer approximately $13 million in operating and capital expenses from 2023 into 2024. Gogo plans to share more details during its second quarter 2023 earnings call on August 7, 2023.

Conclusion

Despite the delay, Gogo remains committed to its mission of delivering the first 5G network exclusively for business aviation. The company’s extensive testing of 5G components has been successful, and it continues to work towards overcoming the current challenges.