The latest delay of Gogo's 5G air-to-ground connectivity system pushes the 5G launch to mid-2024, due to a chip design error.
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Originally planned for launch in 2022, Gogo Business Aviation’s high-speed 5G air-to-ground (ATG) connectivity network has been delayed again. Chip shortages prompted the first delay, leading to revised launch plans in 2023, but now the network is expected “in approximately mid-year 2024,” according to Gogo.
The recent delay is “due to a design error in a non-5G component of its chip, which was designed by a third-party subcontractor of its 5G solution provider,” the company said in a statement released yesterday.
“We are disappointed in this delay but remain confident that Gogo 5G will deliver better performance and better value than competitive ATG or GEO satellite solutions,” said Gogo president and COO Sergio Aguirre.
The 5G antenna network covering the U.S. was completed last year and comprises 150 sites. The average system speed is expected to be around 25 Mbps, with peak speeds of 75 to 80 Mbps.
According to the company, “Gogo’s suppliers have so far successfully conducted extensive testing of the 5G components of the chip, and the design error is not in the 5G block of the chip.”
Gogo is still taking orders for 5G systems, and customers can have their aircraft pre-provisioned with antennas and wiring harnesses so the system can be installed quickly once the equipment is ready. Installation centers are developing multiple STCs for Gogo 5G systems, and Gogo is working with aircraft manufacturers to make 5G a production line-fit option.
Because of the delay, Gogo anticipates a reduction in 2023 revenue of $7 million and plans to defer about $13 million in operating capital expense from 2023 to 2024.
Chip Design Flaw Delays Gogo 5G Launch to Mid-2024
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Originally planned for launch in 2022, Gogo Business Aviation’s high-speed 5G air-to-ground (ATG) connectivity network has been delayed again. Chip shortages prompted the first delay, leading to revised launch plans in 2023, but now the network is expected “in approximately mid-year 2024,” according to Gogo.
The recent delay is “due to a design error in a non-5G component of its chip, which was designed by a third-party subcontractor of its 5G solution provider,” the company said in a statement released last night.
The 5G antenna network covering the U.S. was completed last year and comprises 150 sites. The average system speed is expected to be around 25 Mbps, with peak speeds of 75 to 80 Mbps.
Gogo is still taking orders for 5G systems, and customers can have their aircraft pre-provisioned with antennas and wiring harnesses so the system can be installed quickly once the equipment is ready. Installation centers are developing multiple STCs for Gogo 5G systems, and Gogo is working with aircraft manufacturers to make 5G a production line-fit option.
Because of the delay, Gogo anticipates a reduction in 2023 revenue of $7 million and plans to defer about $13 million in operating capital expense from 2023 to 2024.