Google in talks to buy Nokia’s in-flight broadband

LONDON: Google is in talks to acquire Nokia Oyj’s airplane broadband business as the Alphabet Inc unit seeks to tap into new services and reach more users by offering in-flight high-speed Internet, people familiar with the matter said.

Nokia’s technology could help Google offer a faster alternative to existing Wi-Fi on airplanes, said the people, who asked not to be identified because the deliberations are private. Talks are advanced and an agreement may be reached soon, the people said.

A final decision hasn’t been made and the companies could still decide against a deal, the people said. Representatives for Alphabet and Nokia declined to comment.

Nokia’s LTE A2G cellular-based system also creates a direct link between an aircraft and the ground instead of just bouncing the signal off of a satellite, enabling in-cabin high-speed internet services using Wi-Fi, according to its website.

Onboard internet has been a consumer pain point for years, with spotty service and weak bandwidth.

Yet travelers often pay handsomely for any connectivity on flights.

That’s a business opportunity and also a chance for Google to expand its services.

The move could create a wealthy new competitor to Gogo Inc., an existing provider of in-flight internet service. Shares of Chicago- based Gogo pared gains on Tuesday on news of the Google-Nokia talks, finishing with an advance of 2% to US$8.86 in New York, giving the company a market value of US$769mil. Alphabet rose 1.6% to US$1,036.5. Nokia rose 1.2% to 4.55 euros as of 10:18 am in Helsinki yesterday, bringing the value of the company to 25.6 billion euros (US$31.7bil).

The company, which has been battling a slowdown in spending by cellphone network operators, could benefit from a more diversified product portfolio than Swedish rival Ericsson AB, analysts at Berenberg said, advising clients to buy Nokia shares.