AT&T is dropping its plans to develop in-flight Wi-Fi for commercial airlines.
The decision means Gogo is likely to remain the leading company in on-board connectivity.
In April, AT&T announced a partnership with Honeywell International, Inc. to develop in-flight Wi-Fi with its 4G LTE technology. But the company announced Monday it was scrapping that plan.
“After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the inflight connectivity industry,” AT&T spokesman Fletcher Cook said in a statement. “We are focusing our capital on transformative investments, such as international and video.”
AT&T is the second biggest mobile phone carrier in the U.S. after Verizon. The company's plan to work on in-flight Wi-Fi promised potential competition in the skies beginning in 2015. (Runway Girl Network broke the story of its cancellation).
The news was good for Gogo's stock, which went up 11% and closed at $18.40 on Monday in New York. Gogo has invested $1 billion in building its in-flight connectivity service.