Wi-Fi at 35K Feet: Gogo Speeding up Sky Surfing

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Oct. 21 (Bloomberg) -- Michael Small, president/CEO at Gogo, discusses his company’s push to add speed to its in-flight wi-fi offering and the biggest challenges to providing service in the sky. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Growth in our economy.

To kick it off is michael small, the ceo of gogo.

Michael, we have to give you some grief because i used gogo, tom uses it, scarlet uses it.

The problem is, we can watch any streaming video, we can watch "game of thrones lowe's quote -- "game of thrones" or anything.

We want to make gogo faster.

We are the technology leader in the space.

We have exciting developments.

We are rolling out technology called htg4, with approximately triple the speed of what you are used to.

I think that will be a big help.

Right behind that, the technology that will be 20 times as fast as what you experience.

That is good news.

The question is, how long does the rollout take and how expensive is it?

So, we are in the process of rolling out 4 as we speak.

It is on over 300 airplanes, and that number will grow rapidly.

It will be 500 by the end of the year and nearly 1000 by the end of next year.

You will see a real difference in 2014. gto will begin to play late in 2014 and will make a real difference in 2015. sara talked about watching "game of thrones" on the airplane and tom does e-mail.

There is an issue about bandwidth use for those activities.

What kind of discussion at their on tier pricing?

We are not sure tear pricing is the answer.

Video uses so much more bandwidth than e-mail or even general web surfing.

What we do is we put gogo vision on the plane, we preload a lot of the tv shows and movies on airplanes so they are already there.

What is your relationship with the airlines right now?

I detect over the point where people demand wi-fi or is it just -- do you trip over the point where people demand wi-fi or is it just six people in business class?

Certainly in the front of the airplane it is heavily demanded.

It is definitely spreading throughout.

One of the new services we just introduced in business aviation is text and talk and its ability to use your own cell phone to send text.

That will show up in commercial aviation next year.

What is your barrier to entry?

If there is someone more entrepreneurial like you?

It is tough to get stuff to make -- to work on airplanes.

We found running a telecom network in the sky is more challenging man on earth.

And we think it is a real barrier to entry, in addition to our long-term contracts.

Tom brought up an interesting point.

I have only seen business travelers using gogo.

What percentage of flyers what actually pay $14 for a full flight wi-fi?

The price varies for flight, depending on the length of the flight and the demand for usage, ranges from less than five dollars to over $20. right now over -- only six percent of the airplane is using it.

Yep, but that number is double than the last three years and we expect continued growth.

At the faa does actually allow passengers to use their wireless devices or tablets or phones, what do you expect the number to go up to from the current six percent?

For our current service, it will keep growing.

When we introduced texting -- what we introduced texting, it will be a big jump in that rate using the service.

Also the preloaded movies and tv shows, that will also create a jump.

Ultimately everyone in our plane will use our service and some fashion or another.

Michael small, good luck with a lot of the changes.

Looking forward to a faster gogo . the ceo of gogo, michael small.

I did not realize that only six

This text has been automatically generated. It may not be 100% accurate.

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