Source: Google looks to buy Nokia in-flight internet

Google is in talks to acquire Nokia’s airplane broadband business as it 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 Nokia and Google parent Alphabet 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.

Nokia, 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.

While Nokia has been developing its in-flight internet technology, the project is a lesser priority than its work on 5G telecom equipment.

Google’s communications group is exploring ways to spread mobile connectivity as strong internet service is crucial to its search engine.