Satellite Internet planned for three billion people

Internet service provider Google and British bank HSBC are financing the project to provide fast and inexpensive satellite-based Internet connections to billions of people in the developing world. The service is expected to be launched by the end of 2010 in Africa, Latin America and the Middle East.

The company behind the project, O3b Networks from Jersey in the Channel Islands, named itself after the number of people who cannot afford Internet access: the "Other 3 Billion". Google needs no introduction, but even HSBC customers may be unaware that the company that was, until the return of Hong Kong to China, the Hong Kong and Shanghai Banking Corporation, is by some estimates, the world's largest company.

Now, O3b reports that it has ordered sixteen satellites from French firm Thales Alenia Aerospace.

The project description states that, while industrial countries in the Northern Hemisphere are well-connected by optical fibre, setting up fibre networks in underdeveloped countries simply does not pay for itself. Therefore, O3b says it wants to provide satellite Internet connections for these countries, in which WiMAX and a 3-D mobile communications stations will be set up. The firm says that the satellites can provide data rates of up to 10 Gb/s via 2300 transponders.

The project is expected to cost $650M-750M. $65M has been made available as start-up financing. The donors include cable network operator Liberty Global, owned by John Malone, and investment firm Allen & Company. O3b says the project will fundamentally change the economics of telecommunications infrastructure in the countries that take part. Reportedly there is already great demand among companies in underdeveloped countries for this type of service. In addition, the firm underscores the social aspects: inexpensive Internet and mobile communications connections will help bridge the "digital gap" between underdeveloped and industrial countries.

(lghp)