Bloomberg - Why Gogo's Infuriatingly Expensive, Slow Internet Still Owns the Skies 5-15min

Since pioneering the in-flight Internet business, Gogo has dominated, commanding about 80 percent of the market. And as often happens with near monopolies, Gogo has become a name people love to hate. ... For years, customer perceptions that Gogo is basically Comcast at 35,000 feet didn’t hurt the company’s bottom line. Users were literally a captive audience, and if they didn’t like the service, too bad, read a book. But for the first time since that Louis C.K. rant, Gogo has some serious competition. At least two companies—ViaSat and Global Eagle Entertainment (GEE)—are encroaching on its airspace, winning business by offering faster, cheaper connections that use satellites instead of cell towers. ... It’s spent almost $1 billion developing onboard equipment and a network of transmission towers across North America. Back then, travelers in business class who needed to work used laptops or occasionally BlackBerrys or Palm Treos. ... Today, the company provides service on more than 2,000 commercial aircraft. It employs almost 900 people and had revenue of $409 million in 2014, up almost 25 percent from the previous year. ... What Gogo does in the sky is, indeed, different from what wireless companies do on terra firma. It uses an air-to-ground system that functions similarly to traditional cell service, but its radio towers point up, not down. Gogo’s towers are anywhere from 50 to 200 feet tall and can be located in rather remote locations, such as atop peaks in the Rocky Mountains or deep in the Alaskan tundra.