SkySurf Canada Communications Inc., founded by Ottawa's Rae Almasri, will license its available Canadian spectrum to Gogo, a United States provider already known for its in-flight Internet services.
Gogo announced Tuesday it has received a subordinate license from Industry Canada to build an air-to-ground frequency spectrum through SkySurf. Gogo plans to commence construction later this year and have an operational network by the end of 2013.
A SkySurf representative could not immediately be reached for comment.
"This license will allow us to offer seamless connectivity service for both our commercial airline partners and business aviation customers operating between the U.S. and Canada," stated Michael Small, Gogo’s president and CEO.
According to media reports, GoGo will pay SkySurf $3.3 million for the exclusive use of SkySurf's air-to-ground licenses, as well as $200,000 a month for leasing signals and cell sites. SkySurf bought its licenses in 2009 during a federal government spectrum auction.
Currently, GoGo has an agreement with Air Canada to offer Internet service on certain flights going between Canada and California. In a recent conference call, officials stated they are examining their options for expanding the service.