IFE provider Gogo Business Aviation has announced a delay in its Gogo 5G system launch, which it says 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.
“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 Sergio Aguirre, Gogo’s president and chief operating officer CEO.
The company was previously known as Aircell and is the only company currently authorised by the FCC and FAA to use frequencies in the 800Mhz band for inflight communications.
The company expects to deliver 5G mid-2024. It says that customers can pre-provision with 5G antennas and harnesses, which will allow operators to quickly install the 5G box once the chip is available.
Gogo expects the project to remain on budget, but that the delay is anticipated to reduce 2023 revenue by approximately $7 million and defer approximately $13 million in operating and capital expense from 2023 into 2024.