Citing its desire to focus “our capital on transformative investments such as international and  video,” AT&T confirmed this week that it had canceled plans to deploy in-flight Wi-Fi services.

Last April, AT&T announced its intention to construct an air-to-ground LTE wireless network in  partnership with Honeywell that would provide the foundation for a new in-flight Wi-Fi offering  that would compete against established airline Wi-Fi provider Gogo, Inc. AT&T had projected a late  2015 launch date for the service and had filed a petition for rulemaking with the FCC in August  proposing revisions to Part 27 of the agency’s rules that govern Wireless Communications Service  (WCS) C- and D-block spectrum to facilitate the proposed in-flight service. In September, AT&T  completed and filed with the FCC a coordination and interference resolution agreement with Sirius  XM Radio that would enable AT&T to use 2.3 GHz WCS spectrum in support of in-flight Wi-Fi  connectivity.

Against the backdrop of revelations that AT&T intends to cut its capital expenditure budget next  year by 14%, an AT&T spokesman said that, “after a thorough review of our investment portfolio, the  company decided to no longer pursue entry into the in-flight connectivity industry.”  Responding to  the news, Gogo CEO Michael Small declared, “we look forward to competing with existing competitors and anyone else who wants to get into the space.”