AirCell Wins Bidding for Air-Ground Broadband Spectrum

AirCell was the high bidder in the Federal Communications Commission's spectrum auction for air-to-ground broadband frequencies.  The win gives the global telecommunications company an exclusive license to provide wireless broadband services to airlines and business aircraft in the United States.

AirCell says it expects to begin commercial deployment in 2007, and while its network will initially cover only the continental U.S., it intends to expand its service across the rest of North America, including Canada, Mexico and the Caribbean.

"As we move forward and complete the official licensing process, AirCell will be accelerating its discussions with a number of airlines, and we look forward to working with them to plan for the introduction of broadband service," said Jack Blumenstein, AirCell's president and CEO.

The broadband service will enable airline passengers to use their own Wi-Fi enabled laptops, PDA's (personal digital assistants), and other devices, in an integrated wireless cabin to connect to AirCell's air-to-ground link.  AirCell's Website indicates that the system could be used with EFBs (electronic flight bags) as well.

The company says it will now initiate discussions with wireless carriers on how to seamlessly use their wireless devices while in the air in the same way they now use those devices on the ground.  Further regulatory approvals will be required to permit use of the cellular frequencies aboard aircraft.

AirCell became an Iridium hardware and service provider in September 2002.  In 2003, the U.S. Patent Office granted the company a patent on technology that will permit passengers to use their personal cell phones while an aircraft is in-flight.

In a post-auction restructuring to be formally completed in the coming months, AirCell says it will add Ripplewood Holdings, LLC, as a major new investor and recognize a significant new investment by entities affiliated with Blumenstein/Thorne Information Investors, a current AirCell shareholder.  06-08-2006.

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