In December 2004 the Federal Communications Commission launched an inquiry to rescind or relax its ban on 800MHz-band cellular phones aboard in-flight aircraft.  In addition to lifting the ban, the study also investigated the feasibility of using pico-cells and other technology to boost coverage in-flight communication via mobile devices.

In a release today, the FCC announced it has terminated the 2004 study (PDF).  Some aspects of the study, such as technical solutions to physically allow cellular phones to function on aircraft, were deemed a success.  The FCC states that its advisory arm has conducted extensive research into the hazards of in-flight usages, with potential solutions as well.  These findings will be published by mid-2007.

However, even if the FCC were to reverse its ban, the U.S. Federal Aviation Administration still has a long standing policy prohibiting usage of transmitting electronics in-flight.  While the FCC's in-flight ban is largely credited to air-to-ground interference, the FAA's ban on cell phones is due to the hazard of air-to-air and in-cabin interference.

The FAA's mobile device guidelines at least partially influenced the FCC's decision to abandon its exploratory research.  "The Commission also noted that the Federal Aviation Administration (FAA) prohibits the use of portable electronic devices (PEDs) on airborne aircraft," the FCC stated. "Given the lack of technical information in the record upon which we may base a decision, we have determined at this time that this proceeding should be terminated."

There is still a loophole in the FCC and FAA bans.  Aircraft-specific services, like Connexion, may operate under the spectrums allocated by the two agencies.