Google backs O3b next-generation global satellite broadband

Service aims to expand broadband access to 70 per cent of world's population

O3b Networks has secured $1.2bn of funding to support a project that will see eight satellites provide low-latency, fibre quality internet connectivity to developing markets.

Google is backing the project, which is to be funded by $770m of debt financing and $410 of equity investments.

Other shareholders include North Bridge Venture Partners, Allen & Company, SES, Liberty Global and HSBC Principal Investments.

"We are pleased to have the new shareholders supporting this mission. The amount of new funding and the quality of the investors reflect O3b Networks' ability to balance important social goals while maintaining the required private sector returns," said John W Dick, chairman of O3b Networks.

O3b stands for the "other 3 billion", and refers to those people in developing markets who do not have access to broadband.

The satellites will be placed in orbit 8,000km above the earth, four times closer to the planet than regular geostationary satellites. This will provide users with extremely low latency, and the company said it will give 70 per cent of the world's population access to fibre-quality broadband.

"I am delighted to welcome an innovative newcomer to the ICT market, especially one whose strategy offers the potential to extend broadband connectivity to millions more people worldwide," said Dr Hamadoun Touré, secretary-general of the International Telecommunication Union, the UN agency for Information and Communications (ICTs) Technologies.

"The company's plan to have services available by 2013 mean this solution could also play a significant role in harnessing ICTs to help meet the UN Millennium Development Goals (MDGs) by the target date of 2015," he added.

The MDGs range from halving extreme poverty, to halting the spread of HIV/Aids and providing universal primary education.