Google and HSBC Backing Satellite Cellular Backhaul Provider

Google and global banking group, HSBC have teamed up with satellite operator, O3b Networks to deploy a high speed internet backhaul service for developing nations where existing telecoms networks are weak.

Backed with financial and operational support from Google, Liberty Global and HSBC Principal Investments, the new system will reduce bandwidth costs for telecommunications operators (telcos) and Internet service providers (ISPs), enabling cost-effective voice and broadband services at speeds equivalent to those enjoyed in the developed world.

Developed nations, particularly in the northern hemisphere, are well served by an extensive submarine fiber network. The deployment of a fiber network in many developing markets is not commercially viable, let alone practical.

The rapid growth of telecommunications services in emerging markets demonstrates the demand as well as the commercial and social benefits available. In O3b NetworksÃ' target markets, where the deployment of high-capacity bandwidth is restricted due to geographic, economic or political barriers, the CompanyÃ's low-cost, low-latency Internet backhaul and 3G cellular backhaul services will allow telcos and ISPs to offer affordable, high-speed Internet access services - effectively bridging the digital divide between developed and emerging markets.

O3b NetworksÃ' operational and technical development is well underway. Production of the initial constellation of 16 satellites has begun. The systemÃ'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.

Posted to the site on 9th September 2008