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May 4, 2018,  by Allianz Partners Business Insights

Google looking to buy Nokia technology to develop airborne broadband

Internet giant Google has its eye on Nokia technology designed to improve Wi-Fi networks on board aeroplanes – a market that is expected to be worth 130 billion dollars by 2035.

 

Google is said to be currently in the late stages of negotiations with Nokia to acquire its "air-to-ground" communication systems, according to Bloomberg. Purchasing the Finnish firm’s advanced communications systems would enable the US web giant to get a foothold in the airborne broadband market and compete with Gogo, who have partnerships with a number of airlines including British Airways, American Airlines and Air Canada, and Panasonic.

 

Top-quality Nokia connectivity technologies catching the eye

 

Despite heavy demand among passengers, the airborne broadband market is still under-developed, with services that are far-from-user-friendly and performances that are often poor, based on the provider.

Nokia’s high-quality connectivity technologies, which combine 4G antennae on the ground with satellites and can thus go across oceanic zones, provide a large bandwidth at high speeds (1,200 km/h in some aeroplanes), vast coverage (a radius of 150 kilometres) and little interference with terrestrial networks. Google has analysed these benefits and decided that this is what it needs to take on a leadership role in this particular sector.

 

Ambitious Google airline sector strategy

 

The US web giant has high hopes for airborne broadband, and if it manages to sell this high-speed service to airlines, it will then be able to add on a whole host of on-board entertainment possibilities including Google Music and YouTube, both of which it owns, as well as completing its travel offer with the on-board sale of activities and excursions.

This enough to make the company lick its lips, particularly since the airborne broadband market will be worth 130 billion dollars by 2035 according to estimates by the London School of Economics, who described it as "a leap forward that cannot afford to be missed" (as reported by French website Deplacementspros.com).  Nokia meanwhile is now looking to prioritise the development of 5G network activities.

 

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