Google is reportedly looking forward to taking over Nokia Oyj’s airplane broadband business. Google feels that the Alphabet Inc. is in desperate need of getting into new services while reaching more users. They are looking forward to providing in-flight high-speed internet by using Nokia’s technology. Though there hasn’t been any official declaration yet from any parties, the agreement is expected to be signed soon.
The LTE A2G cellular-based system of Nokia is capable of establishing a direct link between an aircraft and the ground. It is far more superior than just bouncing the signal off of a satellite which enables in-cabin high-speed internet services using Wi-Fi.
Onboard internet in airplanes has suffered from spotty service and weak bandwidth for long. But the passengers are charged handsomely for the connectivity service flights. That’s why Google has chosen this field to expand its services.
Gogo Inc. is the most renowned existing in-flight connectivity provider. The Shares of the Chicago-based Gogo wasn’t much affected this Tuesday, even after the news of the Google-Nokia talks came out. It is finishing with an advance of 2% to $8.86 in New York. The company, as of now, has a market value of $769 million. Alphabet, on the other hand, saw 1.6% surge. This Wednesday, Nokia did undergo a 1.2% to 4.55 euros by 10:18 in the morning in Helsinki. This means the value of the company is 25.6 billion euros ($31.7 billion).
Nokia has been troubled by a slowdown in cellphone department. They could, of course, take advantage of this diversified product portfolio.
Nokia currently is working on the 5G telecom equipment, as well. The communications group of Google is busy, trying to spread the mobile connectivity in various possible ways, by portraying it as a strong internet service. It is expected to benefit their search engine, YouTube video service, and the ads. These are responsible for almost 90 percent of the company’s revenue. Project Fi wireless business, the Google Voice calling service and a large Wi-Fi network in Starbucks coffee shops are being extensively worked on as well.