SmartSky Networks (SSN), a general aviation air-to-ground (ATG) network, ceased business operations this week, citing the inability to secure the “necessary financing to continue our mission.” The corporation’s demise will hurt many companies but smaller, unsecured creditors will fill the pain the most, according to the head of one of the companies that provide services to SSN.
SSN had signed a number of contracts concerning its nationwide network of more than 300 towers. As a result, those companies are owed millions of dollars by SSN, which is owned by the BlackRock group of funds.
SSN, which was designed to compete with the Gogo ATG network, announced the implementation of an ATG network based on 4G LTE technology using over 250 ground-based cell towers in 2018, Inside Towers reported. At the end of 2021, SSN went live with a patented “beamforming” technology where each airborne aircraft would have its own beam to maintain maximum bandwidth, according to Aviation International News.
“SmartSky was founded with a bold vision: to revolutionize aviation communications. We successfully built and operated a leading, high-performance nationwide air-to-ground network using unlicensed spectrum, made possible by innovative patented technology,” SSN said in a statement on its website. “We hope that SmartSky’s achievements have inspired others to dream big, push boundaries, and pursue transformative ideas to reshape the future.”
The companies that bought equipment, hired personnel and spent money on training are not feeling the inspiration. BlackRock is expected to sell the SSN’s assets to avoid paying unsecured creditors. On top of carrier capex cutbacks, SSN’s exit from the market adds to what is a grueling time for the tower industry.
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