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 O3b Networks system will offer fiber performance over satellite, at prices comparable to fiber in developed regions. By allowing direct connection to core networks and 3G Cellular/WiMAX towers, the O3b Networks system will completely change the economics of telecommunications infrastructure in the world's fastest-growing markets for communications services.

The rapid growth of telecommunications services in emerging markets demonstrates the demand as well as the commercial and social benefits available.

In O3b Networks' target markets, where the deployment of high-capacity bandwidth is restricted due to geographic, economic or political barriers, the Company'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 Networks' operational and technical development is well underway. Production of the initial constellation of 16 satellites has begun. The system's 2,133 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.

O3b Networks was founded by successful high-technology entrepreneur Greg Wyler with a mission of making the Internet accessible and affordable for billions of people in emerging and developed markets.

Wyler, along with O3b Networks Chairman John W. Dick, recently helped pioneer the first commercial 3G mobile and fiber-to-the-home (FTTH) networks in Africa.

That experience revealed the urgent need in developing countries for low-latency, gigabit backhaul services that can power high-speed data and voice connectivity for consumers, businesses, schools and health care facilities.

"Access to the Internet backbone is still severely limited in emerging markets," Wyler said.

"Only when emerging markets achieve affordable and ubiquitous access to the rest of the world will we observe locally generated content, widespread e-learning, telemedicine and many more enablers to social and economic growth which reflect the true value of the Internet. O3b Networks will bring multi-gigabit Internet speeds directly to emerging markets, whether landlocked in Africa or isolated by water in the Pacific Islands."

Bringing together Google, Liberty Global and HSBC has created a team that is ideally suited to help bring this new service to market.

"O3b Networks' model empowers local entrepreneurs and companies to deliver Internet and mobile services to those in currently underserved or remote locations at speeds necessary to power rich web-based applications," said Larry Alder, Google Alternative Access Team Product Manager.

"We believe in O3b Networks' model and its goal of expanding the reach of the Internet to users who currently have limited and expensive connection options, as it complements our mission of organizing the world's information and making it universally accessible and useful."

Liberty Global is the world's leading international cable operator, offering advanced video, telephone and broadband Internet services to 16.1 million customers across 15 countries.

Liberty Global CEO Michael Fries said, "Core transmission capacity is one of the most significant barriers to rolling out the high-speed telecommunications infrastructure necessary for a developing country and its economy. Using innovative modern satellite technology, O3b Networks will make fiber-quality connectivity available throughout most of the world, without having to lay any fiber."

Richard J Cole, HSBC Global Head of Principal Investments and Private Equity, said, "HSBC's Principal Investments business is pleased to invest in O3b Networks and support the company's enabling high-speed, low-cost Internet connectivity in emerging markets. This investment is integral to HSBC Principal Investments' strategic focus of investing primarily in growing emerging markets."

related report
Thales Alenia Space building a new satellite constellation for O3b Networks
Thales Alenia Space has announced it has started construction of 16 of its Low Earth Orbit communications satellites for Jersey, Channel Islands based O3b Networks Limited, with options for additional spacecrafts.

The satellites will offer low latency Internet backhaul to emerging markets and developing countries worldwide at speeds up to 10 Gbps with a combined total capacity in excess of 160Gbps.

Thales Alenia Space started design activities under contract in 2007 and has received Authorization To Proceed (ATP) with the construction phase of the project. The delivery of the initial satellites and service activation are scheduled for late 2010.

O3b Networks recently announced the new satellite network with support and funding from Google, Inc, Liberty Global, Inc., and HSBC Principal Investments. Bridging the gap between current satellites and fiber optic cables, O3b Networks will provide fiber-like trunking capacity to telecom operators and backhaul directly to 3G Cellular and WiMAX towers.

This contract further demonstrates Thales Alenia Space's position as the world's leading space telecommunications system manufacturer. O3b Networks will rely on a flight proven platform. This platform is perfectly suited for telecommunications constellations with excellent in-orbit performance and secure development.

It provides a cost-effective solution with a recurrent service module that features low-cost adaptation to the specific needs of various missions.

Greg Wyler, Founder and CEO of O3b Networks Limited stated: "We have selected Thales Alenia Space for the manufacturing of our satellites as the result of a detailed opportunity analysis and competitive bidding process.

Thales end to end system design experience and capabilities made them thebest candidate to support our go-to-market strategy and provide the most reliable heritage and solution to support our unique mission. We are well under way with the development and will have the initial system in orbit by the end of 2010".

Reynald Seznec, President and CEO of Thales Alenia Space added: "We are very proud to have been selected to design, build and assist with the launch of a new major Low Earth Orbit constellation project. For this innovative project, we will leverage our strong heritage in both LEO platforms and unique capabilities in mission-critical payloads. We have organized ourselves to execute flawlessly on this contract and look forward to the late 2010 launch of the first batch of satellites."

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