As inflight connectivity provider Gogo continues the rollout of its latest satellite-based inflight internet technology, it is also working to upgrade its air-to-ground system with faster speeds.

Gogo said it logged a successful test flight equipped with its latest air-to-ground inflight internet offering, ATG-NG. It uses a network designed to provide faster speeds to customers flying throughout North America on regional and business aircraft, and will be available next year.

The test was performed on Gogo’s own aircraft, spokeswoman Meredith Payette told ATW sister publication Aviation Daily. The company expects the upgrade will provide an experience similar to its latest satellite-based product, 2Ku, and deliver peak speeds of more than 100 Mbps per aircraft via a new antenna and modem. It is too early to tell how quickly each device will be reached, she noted.

Gogo has focused on ramping up 2Ku installations this year. Fourteen carriers have committed to outfitting more than 1,900 aircraft with the technology, including Delta Air Lines, Alaska Airlines and LATAM Airlines Brazil. 2Ku had been installed on more than 320 aircraft as of Oct. 31, Gogo reported its third-quarter earnings update. The company installed 2Ku on 76 aircraft in October alone.

“We are on target to reach our…guidance of 450-550 2Ku installs for the year,” CEO Michael Small told investors during a Nov. 2 earnings call. About one-third of the commercial North American fleet will be connected with 2Ku by the end of 2018, he added.

Small noted that Gogo is changing its strategy as higher-bandwidth technology takes to the skies, focusing on increasing engagement throughout the aircraft instead of primarily on driving yield via business travelers.

“Quite simply, we’re switching from maximizing yield—the business traveler segment—to a strategy that engages the entire aircraft, and I’m very pleased with how that’s going,” he said.

Take rates for Gogo’s technology are expected to increase as higher bandwidth improves the customer experience, Small noted. In the commercial North American market, this figure rose to 7.5% year-over-year from 6.5%. This is in part due to an expanded partnership with T-Mobile, and programs to offer free messaging through web apps on Delta.

Gogo’s third-quarter net loss widened 36% year-over-year to $45.3 million. Revenues increased 17% year-over-year to $172.9 million.

Kristin Majcher, Kristin.majcher@aviationweek.com