Google backed satellite venture promises broadband from the skies

Stuart Corner
Wednesday, 10 September 2008 03:40

Business IT - Networking

O3b has however given some detail of the services it will offer. For satellite service providers, system integrators, large operators, governments, and vertical markets O3b will provide whole or partial transponder space. Each transponder carries up to 216MHz in both directions allowing for over 600Mbps of IP trunking.

In addition O3b will offer on demand access for disaster communications and in the event of fibre failures, claiming a high capacity link can be set up in only 10 minutes. "With wholesale transponder space we can interconnect any two points you require at high speed. Because the system is a pure bent pipe, it can transmit virtually any protocol, with any encryption with very secure links between two locations," it says.

The satellites will have 'steerable' spot beams, and customers will be able to position beams at short notice prior to an event and backhaul special event traffic. However, again, because the satellites are in low earth orbit each beam will have to be continually steered to keep it on location as the satellite moves and delivered from different satellites as each moves over the horizon.

For telcos O3b promises that "With the O3b system you will be able to offer almost any high-capacity Internet solution to your customers on a truly global scale. The average available speed to the Internet will be multiplied by factors of 5 to 10. The cost of the satellite bandwidth with be decreased by factors of 5 to 10. The quality of the connection will tremendously improve as the latency will decrease by a factor of 5." It does not say what these comparisons are with, presumably current satellite offerings.

O3b Networks' founders are high-technology entrepreneur Greg Wyle and chairman John W Dick, who recently helped pioneer the first commercial 3G mobile and fibre-to-the-home (FTTH) networks in Africa. Its headquarters are in St John, Jersey, in the UK's Channel Islands. Ground systems and technical development are managed through its wholly-owned subsidiary in Englewood, Colorado.

In filings with the SEC, Liberty Global has given some details of its investment in the company. In January 2008, Liberty paid $US5.2 million for a 6.6 percent convertible preferred equity interest in O3B. In late April it said: "Other investors in O3B at March 31, 2008, include John W Dick, one of our directors and a founder of O3B, who owns an approximate 10.9 percent common interest in O3B, Paul A Gould, also one of our directors, who owns directly and indirectly an approximate 0.8 percent common interest in O3B and the other holders of O3B, a founder and Allen & Company LLC, both of whom are unrelated to us, who own an approximate 80.9 percent and 0.9 percent common interest in O3B, respectively."

Google does not appear to have lodged any details of its investment with the SEC.