Gogo stalls 5G network roll-out on account of global chip shortage

Gogo stalls 5G network roll-out on account of global chip shortage

Well-known in-flight broadband and internet service company, Gogo, has reportedly delayed the launch of its 5G network by pushing it back a year from 2021 to 2022.

As per sources familiar with the matter, the delay stems from the shortage of chips across the world. However, there are no direct details offered by the internet provider on its setbacks caused due to the shortage.

If reports are to be believed, various other firms along with Gogo have also been affected by the global chip shortage. For instance, graphics cards, CPUs, and game consoles have turned infamous on account of their short supply. In addition, car manufacturers are slowing down on their production lines owing to the supply constraints.

Apparently, this worsening situation has encouraged U.S. President, Joe Biden, to sign an executive order to call for a review of the chip supply chain.

For the uninitiated, Gogo, a prominent provider of in-flight Wi-Fi, faced multiple challenges in 2020 as people stopped taking flights, which led to its involvement in various rounds of layoffs, pay cuts, as well as furloughs. Furthermore, the company’s commercial in-flight Wi-Fi business was purchased by a bankrupt satellite provider, which suggests unclear prospects for the company’s plans for its 5G network post its roll-out.

On the other hand, Gogo currently offers internet and in-flight entertainment solutions for smaller and more business-oriented planes and could possibly make use of the network to enhance that service.            

However, the company has refrained from divulging any details pertaining to its forthcoming plans for the network.

It has been speculated that the 5G network would be an upgrade to Gogo’s existing 3G cellular towers post its roll-out.

Sources have also revealed that the company had given up on its plans to upgrade the network to 4G with ZTE equipment after the U.S. government imposed a ban to shut down the network equipment provider.

Source Credits:

About the author

Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for, spanning the verticals of business, finance, and technology.