Wednesday, September 10, 2008

LEOS: Here We Go Again

Google has agreed to back a satellite broadband access service in Africa, Asia and South America
within 45 degrees of the equator or half the world’s surface, CommsDay reports. Google is working with  HSBC and Liberty Global and O3b Networks to construct and operate a fleet of 16 low-Earth-orbit satellites. Service activation is scheduled for late 2010. 

The project aims to offer low latency Internet backhaul for 3G and WiMAX deployments, as well as satellite-based broadband services.

It isn't the first time lots of capital has been thrown at the idea of LEOS systems. Teledesic proposed just such a system in 1990. Teledesic's original proposal aimed to build a huge network costing over $9 billion and using 840 active satellites. In 1997 the scheme was scaled back to 288 active satellites was later scaled back further.

The commercial failure of the similar Iridium and Globalstar ventures (composed of 66 and 48 operational satellites, respectively) and other systems, along with bankruptcy protection filings, were primary factors in halting the project.

The satellites will offer speeds of up to 10Gbps with a combined total capacity of the constellation in excess of 160Gbps, the company says. The system will cover Asia, Africa and South American countries located within 45 degrees of the equator.

The three initial partners have injected an initial investment of $65 million into O3b. The total costs of the project is expected to sum up to $750 million. 

The difference this time around is that backhaul is a bigger market than in was in 1990. That, more than direct-to-user services, might be the key to success, this time around.

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