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Verizon Dropping Out of Inflight Phone Service

The Associated Press is reporting that Verizon Airfone intends to discontinue its seat-back telephone service on airliners before the end of the year.

About 1,000 aircraft operated by United, Continental, Delta and US Airways are currently flying with Airfone equipment.  The company said it will continue to provide telecommunications services on about 3,400 corporate and government planes.

Airfone essentially conceded the business to others when it exited early from an auction of nationwide airwaves by the U.S. Federal Communications Commission (FCC) recently.  The company's license to use the bandwidth expires in 2010.

AirCell was the high bidder in the FCC's spectrum auction for air-to-ground broadband frequencies.

Formerly a unit of GTE Corp. Airfone was acquired by Verizon Communications Inc. in 2000.  A spokesman for the company said Verizon will focus on its core business of broadband, wireline and wireless.  06-27-2006.

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