Google Inc, Liberty Global Inc and HSBC Holdings Plc plan to build a satellite network to provide Internet connections in emerging markets.
The system will become operational late in 2010, according to a statement yesterday from O3b Networks Ltd, the United Kingdom-based venture backed by the three companies.
Thales SA, Europe's largest defense electronics maker, said it had started construction of 16 satellites for the network, Bloomberg News reported. The satellite order was the first stage of a 500-million-euro (US$707 million) project to provide fast Internet connections to countries within 45 degrees north and south of the equator, O3b Networks Chief Executive Officer Greg Wyler said.
"There are a lot of people that will be taking the capacity," said Wyler. "The bulk of the capacity will go to emerging countries."
Allen & Co, a New York-based investment bank, was also participating in the project, though it was investing less than the other three investors, said Charles Palmer, a spokesman for O3b Networks at Financial Dynamics.
Together the backers were investing 43 million euros, Wyler said. The company needed an additional investment of about 100 million euros and the "current shareholders are a possible source," he said. In addition, the company would borrow about 350 million euros.
O3b Networks plans to provide a high-capacity satellite connection to the Internet on which telephone companies and Internet service providers in emerging markets would be able to build their high-speed mobile and Web-access offers, the statement said.
