Gogo internet IPO sells off first day! oops

Discussion in 'Travel Technology' started by maksim, Jun 21, 2013.  |  Print Topic

  1. maksim

    maksim Silver Member

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  2. adambadam
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    adambadam Silver Member

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  3. Wandering Aramean
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    Wandering Aramean Gold Member

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    The Vision service isn't planned; it is alive and in use. AA has it on some planes, as does Delta.
     
  4. maksim

    maksim Silver Member

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    One of the things that now got me thinking.... Gogo wifi is not really heavily advertised on the flights. Plus... For the most part it is a tad expensive. The costs are fixed, if it was under $5 I don't see a reason people would not pay for it.... More than $5.... Too much. Especially since the speeds are only good to browse.
     
  5. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    If too many use it, the quality will go own since the bandwidth is fixed, and people will be annoyed.
     
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  6. maksim

    maksim Silver Member

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    For regular browsing, especially since most web pages are static, it would not be an issue.

    The bandwidth issues come in when people try to stream Netflix, amazon, Hulu, YouTube. As long as those are locked out... No reason not to try to maximize the use.

    I am not a frequent flyer, just once or twice a month this year on delta... And I only use it with the free for blackberry users promo on Delta.

    If I was a regular flyer, I can justify the $42 a month or whatever it is right now... That is downright cheap.... However for the vast majority of the users... I would imagine it would be the occasional flyer... And $10 a flight or $14 for an all day pass.... I can pass up, since well... You can only use it for whatever the flight time minus 40 mins.

    Unless they lower the costs, to get more people using it... I am afraid they will sooner rather than later go bust. Much like everything else, as time goes on, cost of technology drops. People will expect it for free, as part of doing business.

    Look at wifi in the airports... More and more are doing free wifi. In most cases, I will just use the wifi hotspot feature of my phone. Much more secure, and significantly faster too.

    For the 2 hours I am in the air between airports..... I will just have to unplug, relax and read a book.

    Worst case, you can do your work, and just send the email when you land.

    The only case I can see paying the high fees is when you Must get something done or need communication on the flight. But for the most part, for the folks sitting in the back of the plane.... I would rather get 3 cups of Starbucks then pay $10 an hour for mediocre Internet.
     
  7. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    From what I recall, their terrestrial system uses a CDMA Rev A connection to the ground, which gives them about 3 megabits/second. If you throw 100 customers on that pipe, each individual connection will become rather sluggish. Even without streaming video, Facebook and the likes have lots of pictures. And business travelers expect to be ale to download or send emails with large attachments.

    (btw, what do you mean by static? It has a certain meaning in web technology, but I don't think that's what you mean... the page you are looking at right now for example is not static)

    What Gogo needs to aim for is revenue and profit maximization, not usage maximization. Doesn't mean that they have reached the optimal point yet, and I don't know what the best price would be.
     
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  8. maksim

    maksim Silver Member

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    Exactly that. Static.

    For instance. I run a forum that has about 300 users on at the same time. We have a dedicated server, but for the most part, there are only 1 or 2 queries run at the same time.

    Ie, for the most part, once the page is loaded, and all the content is served, the bandwidth is there.

    Most 3g speeds on cell phones are far slower, 1/10th or less of that. Look, you are not going to have the full plane use the internet. More than half are asleep anyway. You may have what, 20 people max use the internet? Right now, how many are actually using it?

    As an investment advisor... my money is on shorting Gogo. I don't see them being profitable.
     
  9. tom911
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    tom911 Gold Member

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    At the current pricing, I'm just not going to be a paid consumer. I did watch some Rick Steves videos for free yesterday on AA LAX-ORD, but that seemed te be the only free video content. Watched some PBS content I had stored on the tablet the rest of the way.
     
  10. http://www.nytimes.com/2013/06/25/b...?nl=todaysheadlines&emc=edit_th_20130625&_r=0

    With competitors like Panasonic Avionics, Row 44, ViaSat and OnAir active in the field, market share will be fiercely contested. And the Gogo offering went off against the sobering reality that, so far, only a small number of passengers have been choosing to pay for Wi-Fi, which can cost $12 or more per session. Gogo, for example, said that in the first quarter of this year, 6.2 percent of passengers on planes with its Wi-Fi systems opted for its service, a slight improvement from the 5.6 percent who took it in the 2012 first quarter.
     
  11. iolaire
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    iolaire Gold Member

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  12. maksim

    maksim Silver Member

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    This is a common thing with ipos. All the data is not instantly updated. Yahoo is typically much better
     

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