In-flight WiFi provider Gogo announced a year-long delay in the rollout of its 5G air-to-ground network service. Paxex Aero reported the postponement was due to issues with the chip design by a third-party subcontractor. Gogo 5G is now expected to go live in mid-2024, pending the resolution of the chip redesign.
“We are disappointed in this delay, but remain confident that Gogo 5G will deliver better performance and better value than competitive ATG or GEO satellite solutions,” said Gogo President/CEO Sergio Aguirre.
Paxex Aero reported the recent problem is the second the company has experienced. In 2022, a setback occurred due to issues discovered during “late-stage testing” of gear. Gogo resolved the design flaws and reworked the manufacturing process.
According to Gogo, Aircraft owners and operators will be able to “quickly install the 5G box once the chip issues are resolved,” according to Gogo. The company predicts a $7 million revenue loss in 2023, and expects to defer $13 million in expenses to 2024 due to the technical lags.
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