Google is planning to extend Internet access to the unwired regions of the world via satellite, in an effort to add new internet users, and boost revenue and earnings. The new project's estimated price ranges from $1B-$3B, and will start with 180 small, high-capacity satellites orbiting Earth at low altitude. Google's previous projects to extend connectivity involved high-altitude balloons and solar-powered drones.
Google Inc. GOOGL -1.88% plans to spend more than $1 billion on a fleet of satellites to extend Internet access to unwired regions of the globe, people familiar with the project said, hoping to overcome financial and technical problems that thwarted previous efforts.
Details remain in flux, the people said, but the project will start with 180 small, high-capacity satellites orbiting the earth at lower altitudes than traditional satellites, and then could expand.
Google's satellite venture is led by Greg Wyler, founder of satellite-communications startup O3b Networks Ltd., who recently joined Google with O3b's former chief technology officer, the people said. Google has also been hiring engineers from satellite company Space Systems/Loral LLC to work on the project, according to another person familiar with the hiring initiative.
Mr. Wyler has between 10 and 20 people working for him at Google and reports to Craig Barratt, who reports to Chief Executive Larry Page, one of the people said. Mr. Wyler couldn't be reached.
The projected price ranges from about $1 billion to more than $3 billion, the people familiar with the project said, depending on the network's final design and a later phase that could double the number of satellites. Based on past satellite ventures, costs could rise.
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During a conference in March, Google CEO Mr. Page mused about spanning the globe with Internet access delivered by Project Loon. "I think we can build a world-wide mesh of these balloons that can cover the whole planet," he said, noting that they are cheaper and faster to launch than satellites.
But satellites are more flexible and provide greater capacity. In recent years, costs to build and launch satellites have dropped sharply, according to Neil Mackay, CEO of Mile Marker 101, an advisory firm.
Consultant Mr. Farrar estimated that 180 small satellites could be launched for as little as about $600 million.
If Google succeeds, it "could amount to a sea change in the way people will get access to the Internet, from the Third World to even some suburban areas of the U.S.," said Jeremy Rose of Comsys, a London-based satellite consulting firm.
Google also is hoping to take advantage of advances in antennas that can track multiple satellites as they move across the sky. Antennas developed by companies including Kymeta Corp. have no moving parts and are controlled by software, which reduces manufacturing and maintenance costs.
Kymeta hopes to sell its ground-antenna systems for hundreds of dollars, said CEO Vern Fotheringham. They would substitute for phased-array antennas which cost roughly $1 million a decade ago, he said.
I may want to buy DISH as I think that could be a logical buy for Google, if the insiders would sell it. Once you are connected to the net, having high value content to sell is not a bad way to make extra money, but they may depend on new YouTube channels replacing pay TV... trouble is I am very happy with DISH and don't want to depend on the clogged internet for HDTV since they shows are often more compressed than over DISH.
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