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Google backs satellite initiative for emerging markets

By CAROLINE GABRIEL

Published: 17 September, 2008

READ MORE: Google | Satellite

Google is prepared to lend its weight to almost any initiative that could expand access to the internet and its services, and its latest activity focuses on satellite communications for emerging markets. The search giant is working with bank HSBC and cable operator Liberty Global to support a group called O3b Networks (short for 'the other three billion' - or people who do not currently have internet access).

The group is looking to use satellite to provide high speed backhaul for operators and internet providers, which can then sell services to businesses and consumers. This would be on a wholesale basis that would be far less costly than current private satellite offerings to remote areas.

South African Finance Minister Trevor Manuel welcomed the project when speaking at a conference in Germany. "Any initiative that can leapfrog over traditional means of getting information to people must be encouraged. Information is power and it supports democracy and it supports decision making," he said.

O3b Networks said in a statement that the satellites would be constructed by Thales Alenia Space and should be operational by the end of 2010 with coverage from Spain to South Africa, and including most of South America, large parts of Asia and all South Pacific Islands. The project intends to offer fiber performance over satellite to parts of the world where it is not commercially viable or practical to deploy a fiber network. The pre-launch cost will be about $650m and 10% of this has already been raised in initial equity, but the final mix of debt and equity has not been set.

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