AT&T Inc (NYSE:T) has scrapped its plans to launch high-speed Internet service on commercial flights in order to focus on international expansion and video offerings, the company said in a statement on Monday.
On Friday, the carrier announced a $1.7 billion acquisition of Mexican operator Iusacell, AT&T's second major acquisition this year following a $48.5 billion bid for satellite operator DirecTV.
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"After a thorough review of our investment portfolio, the company decided to no longer pursue entry into the in-flight connectivity industry. We are focusing our capital on transformative investments, such as international and video," said Fletcher Cook, a spokesman for AT&T.
In April, AT&T and Honeywell International Inc had announced a partnership to launch a high-speed 4G LTE-based in-flight connectivity service for airlines and passengers in commercial, business and general aviation in the U.S.
The product would have competed with in-flight internet services provider Gogo Inc., whose shares soared 10 percent on the news.
(Reporting by Marina Lopes; Editing by Alan Crosby)