June 27, 2006

Phones stored in the back of airplane seats operated by Verizon Communications will be shut down by the end of 2006.

Verizon plans to shut down much of its Airfone business, which has been offering air-to-ground communications for about 20 years, in order to focus on its wireline, wireless and broadband operations, according to Airfone spokeswoman Julie Baron.

Airlines that offer Airfone service to passengers include United, Continental and U.S. Airways.

“We’re working with our customers, the airlines, to have a customized transition plan with each of them,” said Baron.

However, Baron noted, Airfone service will continue to be available for general aviation customers including the U.S. government, the military and corporate aircraft.

Verizon Airfone dropped out of the Federal Communications Commission’s recent air-to-ground 800 megahertz spectrum auction.

The two winning bidders were AC BidCo L.L.C., an affiliate of AirCell Inc., with a 3 megahertz license; and JetBlue’s LiveTV L.L.C., with a 1 megahertz license.

LiveTV has to wait until Verizon Airfone vacates the spectrum—which must happen by 2010—in order to use it.

Source: RCR News