UPDATED 21:43 EDT / APRIL 11 2018

INFRA

Report: Google is trying to buy Nokia’s airplane broadband system

Google LLC is reportedly in advanced talks with Nokia Oyj to buy its airplane broadband business, Bloomberg reported Tuesday.

Using Nokia’s technology, Google might be able to offer a faster alternative service to current in-flight Wi-Fi, Bloomberg said. Nokia’s airplane Wi-Fi technology is based on an LTE A2G cellular-based system that has been under development for some years already. The system is designed to provide a direct link between aircraft and the ground in order to eliminate the latency seen in current systems, which send signals directly to a satellite.

Bloomberg said talks between Google and Nokia were at an “advanced stage,” with some kind of deal likely to be announced soon. If the sale does go ahead, it would see Google go head-to-head with the U.S.’s leading in-flight internet service provider Gogo Inc. Neither Google nor Nokia commented on the rumors.

According to Bloomberg, Nokia has been working on its in-flight Wi-Fi technology for five years already through its Bell Labs research business. Last year it was reported that the tech was almost ready to go live, though that still hasn’t happened yet.

A real business opportunity exists in airborne Wi-Fi services because current systems are not known for their reliability. Spotty service and weak bandwidth are the norm, but travelers are nonetheless willing to pay high prices for this weak connectivity.

Airborne Wi-Fi is just one of several ways Google has been looking to boost mobile connectivity via its communications business. That unit also oversees projects such as the company’s growing Wi-Fi network available in Starbucks Corp.’s coffee shops.

A more ambitious effort was Google’s Project Titan, which envisaged using solar-powered drones to deliver broadband connectivity from high altitudes, though those plans were abandoned last year. Similarly, Project Loon saw Google attempt much the same thing, using hot-air balloons to deliver Wi-Fi from above. Google has also looked to break into the fixed-line market in the U.S., but has scaled back those efforts because of the expense.

Google is looking at ways to introduce higher mobile bandwidth because most of its services demand fast and reliable connectivity, said Holger Mueller, vice president and principal analyst at Constellation Research Inc. He pointed out that YouTube, for example, cannot easily be consumed by airplane passengers because existing broadband simply isn’t fast enough.

“As Google has invested into Fiber and Loon, this is a rational next step,” Mueller said. “After all, what is a better audience for advertisements than one that’s locked up for hours with limited options on what to do?”

As for Nokia, it’s believed that its in-flight Wi-Fi services are a lower priority than its efforts to build a 5G network, so the company could well be willing to sell.

Image: Fresus/Flickr

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