Gogo offering update

The world’s largest provider of broadband connectivity services for the business aviation market is growing its portfolio of solutions with both a new ATG 5G network to serve the North American market and a global broadband solution powered by OneWeb LEO constellation.

In December 2020, Gogo completed the sale of its commercial aviation division to satellites operator Intelsat, turning all its focus to serving the business aviation market. How do you see that single focus making a difference in a market where travelers have very high expectations?

It’s been very beneficial for our customers and for our business. Having a sole focus on business aviation has allowed us to invest more targeted innovations to benefit the business aviation market specifically such as Gogo 5G, which will launch later this year, and our new low-Earthorbit (LEO) global broadband service which will launch in 2024. Our business operations are more streamlined as well which enables us to invest more heavily in new technology that will provide better performance and more services for our customers. In October 2022, Gogo completed its 5G nationwide network, and plans to expand 5G into Canada later this year.

Since its first launch in 2008, Gogo’s air-to-ground (ATG) connectivity network has been the only Satcom alternative solution, enabling broadband connectivity access to thousands of small to medium size jets and even turboprops. What is ATG’s current market size?

Gogo is the world’s largest provider of broadband connectivity services for the business aviation market. Gogo’s products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals. As of December 31, 2022, we reported 3,279 business aircraft flying with Gogo’s AVANCE L5 or L3 system installed, 6,935 aircraft flying with its ATG systems onboard, and 4,475 aircraft with narrowband satellite connectivity installed.

Gogo is both a connectivity network operator and a service provider. AVANCE platform is a key enabler for delivering a complete in-flight entertainment & connectivity solution for passengers, pilots, and operators. Can you walk us through some of this platform’s capabilities and market adoption?

Gogo’s AVANCE platform, with its multi-bearer capability and software-centric design, allows customers to futureproof their inflight connectivity investments, with easy upgrade paths to both Gogo 5G and Gogo’s global LowEarth Orbit (LEO) satellite-based product in the future. AVANCE is the single digital engine that drives the entire inflight connectivity and entertainment experience.

Unlike traditional avionics LRUs, which are designed to only do one thing, Gogo AVANCE systems are fully integrated platform solutions that makes it possible to integrate and transform your entire inflight connectivity and entertainment (IFEC) experience. Everything works together and everything is designed to be sustainable, not replaced. AVANCE is a platform, not a single product, that can be upgraded over time with new technology and capabilities as they become available. It also delivers Gogo Vision, Gogo’s entertainment offering with hundreds of movies and TV programs along with flight tracking, more than 30 leading digital magazine titles, and business news clips from Bloomberg. There are nearly 3,300 aircraft flying with an AVANCE L5 or L3 system installed today making it the most successful and widely adopted broadband inflight connectivity system ever launched.

Earlier this year, Gogo announced the successful CDR completion of the 5G chip required for Gogo X3 5G LRU paving the way for the 5G service launch later this year. How are you planning to address thousands of US-based aircraft transitioning to the new service?

Gogo 5G service can install the AVANCE L5 system today with full 5G provisions and operate on Gogo’s 4G network until the X3 LRU is available. Once the X3 is ready, it can be installed quickly and 5G service can begin immediately, saving downtime and expenses. Gogo is offering significant incentives to anyone who installs the 5G provisional kit with the AVANCE L5. The first-article Supplemental Type Certification (STC) for the 5G bellymounted MB13 antennas and the X3 (5G) LRU have been completed. That STC will be amended once the 5G chip becomes available. Gogo is working closely with each of the business aviation original equipment manufacturers and several authorized Gogo dealers to develop additional STCs that will cover more than 30 aircraft models in the aftermarket or from the factory. Gogo has close relationships with more than 80 dealers in North America who are authorized to install our systems and we’re expanding that number even further

Last year, Gogo announced the launch of a global broadband connectivity service powered by OneWeb LEO satellites constellation. With this major breakthrough in satellite offering and aircraft antenna technology, the new service can bring broadband connectivity to virtually any business aircraft of any size, what is your expected addressable market size for this game-changing service?

There is a lot of opportunity globally for our global broadband service – especially with its small form factor, light weight and the fact that it requires just one AVANCE LRU and the electronically steered antenna (ESA). Today 70% of North American-based aircraft, and 95% of the business aircraft outside North America have no broadband connectivity – so there’s a significant need and opportunity. Up until we announced our solution, there has been no true broadband offering outside of North America for aircraft that are midsize and smaller, and we specifically designed our service to fit on smaller aircraft to provide service across the business aviation market from large turboprops all the way to ultra-long range global aircraft. There are thousands of aircraft globally that can install our system.

We see ATG 5G and global broadband as complementary elements of our product portfolio, with 5G targeted to serve valueoriented segments of the North American market where 86% of all flights take place, and global broadband targeted to serve all segments outside North America in the high performance super-mid and heavy jet segments inside North America. Our AVANCE multi-bearer capability will allow us to serve the super high premium segment of North American aircraft with LEO and ATG connectivity at the same time, significantly enhancing capacity and providing redundancy for those owners who want them.

Satcom Networks

Satellite networks have seen a large evolution in the last few years with the introduction of recordbreaking high-capacity satellites allowing for ground-like connectivity speeds, reduced costs, and highly optimized coverage.