Google is thought to be in talks with Nokia to buy its plane broadband division as part of plans to develop an in-flight, high-speed internet service.
According to a report from Bloomberg, the internet giant wants to tap into Nokia’s airborne broadband system to transform its own flight-connectivity technology.
Sources claiming to have an understanding of the situation believe that the companies have reached an advanced stage of negotiations and could announce a deal soon.
However, they have not reached a formal agreement yet, which means that the deal may not go ahead. Neither company has commented on the speculation.
Nokia has offered its LTE A2G cellular-based system for a few years. It creates an airborne internet connection by communicating with networks based on the ground, rather than a space satellite.
“The Nokia LTE A2G cellular-based system creates a direct link between the aircraft and the ground thereby eliminating the delay hop to a satellite,” writes Nokia on its website.
It claims that this approach “enables highly desirable in-cabin high-speed internet services using Wi-Fi for always-on passengers”.
The company also claims that this system is more “effective” and affordable” than satellite-based systems, while “improving passenger experience”.
Although Google has not developed a notable in-flight system, it is looking to change this. Currently, accessing internet on planes is difficult, but there is a clear business opportunity.
Chicago, Illinois-based Gogo, for example, has built an entire business by offering in-flight internet services. Following the news of the potential deal between Google and Nokia, shares in the firm advanced by two per cent – giving it a valuation of $769 million.
Meanwhile, as Bloomberg reports, shares in Nokia increased by 1.2 per cent after the news hit the web – reaching €4.55, giving it a market capitalisation of €25.6 billion.