Louisville-based AirCell Inc. is putting the final touches on its bid for airwaves that will be used to provide airline passengers with high-speed Wi-Fi Internet access during flights.
Along with 11 others, AirCell has applied to the Federal Communications Commission to participate in an auction of airwaves scheduled to start May 10. It has until the end of today to complete its application.
AirCell is bidding against Verizon Airfone, which is the only holder of a license to use the frequencies.
The FCC in 2004 voted to allow airlines to offer high-speed Internet connections through the frequencies now used for seat-back phones and to auction those frequencies off to more than one company.
Another applicant, AC BidCo LLC, is linked to AirCell.
If AirCell acquires the spectrum license, its broadband system would be targeted for commercial deployment in 2007 and would allow passengers to use their Wi-Fi devices and cellular phones in the airplane cabin. AirCell tested the system last year.
Airlines including Frontier and United, the largest carriers in Denver, are interested in offering in-flight Internet services.
“Wi-Fi is definitely the next frontier,” said Frontier spokesman Joe Hodas. “We’re definitely looking at it very aggressively.”
Frontier would offer Wi-Fi Internet service for a charge.
About 38 percent of all frequent travelers said they are willing to pay at least $25 per flight for high-speed access to the Internet and their corporate networks, according to Forrester Research. Cellphone use is banned in flight, and the flying public has voiced widespread support of that ban.
“Our customers have told us they’d much rather have Internet access on the aircraft than cellphone use,” said United spokeswoman Robin Urbanski.
Others who submitted applications for the spectrum are Acadia Broadband LP, Ivars Upatnieks, JetBlue Airways Corp.- owned LiveTV LLC, Nsoro LLC, Space Data Spectrum Holdings LLC, AMTS Consortium LLC, Intelligent Transportation & Monitoring Wireless, Unison Spectrum LLC and WorldCell Inc.
AirCell entered into a letter of intent March 24 with New York buyout firm Ripplewood Holdings LLC for a series of transactions that would merge AirCell into a subsidiary of AC HoldCo LLC, an affiliate of Ripplewood and AC BidCo, if the FCC grants AC BidCo’s application.
Timothy C. Collins has ultimate control of AC BidCo, according to the firm’s application. Collins is senior managing director and chief executive of Ripplewood Holdings.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
