Google backed start up aims to offer low cost internet access via satellite

Details: Alec Barton; Category: Satellite Networks; 17 September 2008; 7520 views

O3b Networks, a start up company is aiming to provide low cost, high speed broadband access to emerging markets in Asia, Africa, Latin America and the Middle East during 2010...

O3b Networks, a start up company is aiming to provide low cost, high speed broadband access to emerging markets in Asia, Africa, Latin America and the Middle East during 2010.

O3b - standing for the "Other Three Billion" - believes that while developed nations are well served by extensive submarine fibre networks, the deployment of fibre networks in many developing markets is not commercially viable or practical.

Founded by successful high-technology entrepreneur Greg Wyler, formerly of Terracom, with a mission to make the Internet accessible and affordable for billions of people in emerging and developed markets, O3b Networks has raised over US$60m from backers Google, Liberty Global and HSBC.

This should enable it to begin deployment of a constellation of 16 satellites offering low-latency links from 1 Mbps to 10 Gbps for core trunking, instant fibre-path restoration and 3G Cellular backhaul. The new system aims to reduce bandwidth costs for telecommunications operators and internet service providers (ISPs), enabling cost-effective voice and broadband services at speeds equivalent to those enjoyed in the developed world.

The O3b Networks system will offer fibre performance over satellite, at prices comparable to fibre in developed regions. By allowing direct connection to core networks and 3G Cellular/WiMAX towers, the O3b Networks system will completely change the economics of telecommunications infrastructure in the world's fastest-growing markets for communications services.

O3b Networks' operational and technical development is well underway. Production of the initial constellation of 16 satellites has begun, with the contract awarded to Thales Alenia Space. The system's 2,300 transponder equivalents will deliver low-latency Internet backhaul at speeds reaching 10 gigabits per second. Service activation is scheduled for late 2010. The scalable nature of the system allows for additional satellites to increase capacity and meet growing demand.

Wyler, along with O3b Networks Chairman John W. Dick, recently helped pioneer the first commercial 3G mobile and fibre-to-the-home (FTTH) networks in Rwanda. That experience revealed the urgent need in developing countries for low-latency, gigabit backhaul services that can power high-speed data and voice connectivity for consumers, businesses, schools and health care facilities.

"Access to the Internet backbone is still severely limited in emerging markets," Wyler said. "Only when emerging markets achieve affordable and ubiquitous access to the rest of the world will we observe locally generated content, widespread e-learning, telemedicine and many more enablers to social and economic growth which reflect the true value of the Internet. O3b Networks will bring multi-gigabit Internet speeds directly to the emerging markets, whether landlocked in Africa or isolated by water in the Pacific Islands."

Bringing together Google, Liberty Global and HSBC has created a team that is ideally suited to help bring this new service to market.

"O3B's model empowers local entrepreneurs and companies to deliver Internet and mobile services to those in currently under served or remote locations at speeds necessary to power rich web based applications," said Larry Alder, Google Alternative Access Team Product Manager. "We believe in O3B's model and its goal of expanding the reach of the Internet to users who currently have limited and expensive connection options as it complements our mission of organizing the world's information and making it universally accessible and useful."

Liberty Global is the world's leading international cable operator, offering advanced video, telephone and broadband Internet services to 16.1 million customers across 15 countries. Liberty Global CEO Michael Fries said, "Core transmission capacity is one of the most significant barriers to rolling out the high-speed telecommunications infrastructure necessary for a developing country and its economy. Using innovative modern satellite technology, O3b will make fibre-quality connectivity available throughout most of the world, without having to lay any fibre."

Richard J Cole, HSBC Global Head of Principal Investments & Private Equity, said, "HSBC's Principal Investments business is pleased to invest in O3b Networks and support the company's enabling high-speed, low-cost Internet connectivity in emerging markets. This investment is integral to HSBC Principal Investments' strategic focus of investing primarily in growing emerging markets."