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Article

Title: JetBlue to Buy Verizon Unit in Email Push

Author: Carey, Susan Article Type: Company
Source: Wall Street Journal, v251 n134 pB1(1) Publication Date: Jun 9, 2008
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

In-flight entertainment provider LiveTV, a unit of JetBlue Airways, announced the acquisition of Verizon's Airfone network for an undisclosed price. The network offers in-flight email and instant messaging (IM) services for airplanes. LiveTV will take over Airfone's 100 air-to-ground communications towers in the continental U.S. on January 1, 2009, as well as corporate and government aviation client accounts. LiveTV currently provides airplane-seat satellite TV programming for a small fee, sometimes free. Since in-flight cell phone calls are not allowed, all the airlines are trying to accommodate passenger demand for email and broadband Internet services, even though high fuel costs might be prohibitive. Being discussed is the expense of installing the required antennas and whether or not to charge customers. Wireless data and voice provider AirCell makes its own network of air-to-ground communications towers which American Airlines plans to test and Virgin America plans to install. For six months, JetBlue has been testing free in-flight email and IM services on Airfone's towers, 'for a fee,' in one of JetBlue's A320 planes. Wi-Fi enabled laptops and users of two models of BlackBerry can access the service which includes email and Amazon shopping. Airfone's acquisition will help LiveTV expand its test service into a marketable airline product. JetBlue hasn't yet announced when it will install LiveTV's system, but stated it's happy with the test results. Continental Airlines agreed with LiveTV to equip its newest planes with in-flight TV and Wi-Fi connectivity. In 2006, Airfone's old spectrum was auctioned off after its 20-year-old business slumped. LiveTV purchased one MHz and AirCell bought 'the other three.'

Companies:
Aircell LLC Amazon.com Inc
LiveTV Research In Motion Ltd (RIM)
Verizon Communications Inc

Products:
Amazon.com BlackBerry
Verizon AirFone

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