Global Internet backbone company O3b Networks has raised $1.2 billion total in its two rounds of financing, the company said Monday. O3b recently finished its second and final round of fundraising, giving the company enough money to launch and begin operations as scheduled in 2013, said SES. O3b raised $230 million in new equity investment from previous shareholders including Google, SES, Liberty Global and HSBC, and new investors Development Bank of Southern Africa and Satya Capital, O3b said. Total equity investment is $410 million. SES said it will increase its equity investment million as much as $75 million over the next three years, taking its total investment as high as $155 million. The company said it will own 34 percent of O3b’s shares. SES said its stake is expected to rise the next two years to about 44 percent. The investor said it will also provide in-kind engineering, commercial and other support for the company. Other funding will come from a $510 million intercompany credit insurer Coface-supported debt facility, $115 million in senior commercial debt and $145 million in mezzanine debt, said O3b. The company plans to launch a network of medium-earth-orbit satellites to provide a global backbone for telecom and Internet service providers.
Telecom Cook Islands will use bandwidth on O3b’s medium earth orbit satellite constellation to increase Internet connectivity to the islands, O3b said. The constellation is under construction, and the service is expected to go live in 2012.
Arianespace will launch O3b Networks’ satellite constellation, O3b said. It said it plans to launch the first eight satellites in 2012 on two Soyuz launch vehicles from French Guiana and will eventually use up to 20 satellites in medium Earth orbit. Further details weren’t released.
ViaSat will provide Ka-band gateway teleports and high-speed trunking terminals for O3b. The infrastructure contract is worth about $47 million, ViaSat said. O3b is scheduled to begin telecom services to poorly connected regions over medium Earth orbit satellites in 2012.
MacDonald, Dettwiler and Associates will provide four advanced technology units to fly aboard a satellite as part of a multi-million dollar contract with Boeing Satellite and Intelligence Services, MDA said. The units will fly aboard a Boeing 702B satellite. The company could potentially supply 12 additional units, it said. MDA also received a contract from Thales Alenia Space to provide advanced technology solutions to be used on eight O3b medium earth orbit communications satellites, it said. The contract is valued at more than $21.7 million.
Global connectivity will be an economic motor and should be a major goal of the National Broadband plan, Diane Cornell, Inmarsat’s vice president of government affairs, said at an FCC workshop Thursday on using broadband to connect the U.S. with the rest of the world. Satellite technology can already provide the connections with a single interface, allowing users everywhere in the world the same experience. True global connectivity is impeded by spectrum coordination from country to country, a time-consuming and expensive process, she said. Steady regulatory environments around the world can promote the use of satellite technology for many applications, she said.
SES said it invested $75 million in O3b Networks, in support of its satellite-based Internet backbone. SES joins Google, Liberty Global, HSBC and North Bridge Venture Partners as investors in the venture. SES’s investment will give it about 30 percent of O3b, said an SES spokeswoman. O3b is developing a medium-earth-orbit, Ka-band satellite network for broadband. The company expects its satellites to launch by 2012.
O3B finished its third quarter with $600 million worth of contracts, the company said last week. O3B, which is funded by Google, Liberty Global and HSBC Principal Investments, is developing a medium-earth-orbit, Ka-band satellite network that will be used in emerging and developed markets for broadband. The company expects its satellites to launch by 2011.
Advantech said it will modify its technology to work with O3B Networks’ planned medium earth orbit constellation. Using the Advantech system, cellular towers will be able to connect directly to the O3B constellation, Advantech said. The software upgrade will feature an automatic satellite beam switching feature that will allow the system to maintain seamless connectivity from one satellite to the next as they circle the Earth five times a day.
Gilat Satellite Networks said it’s designing satellite terminals and ground infrastructure components for O3b Networks. The very small aperture terminals will be adapted to O3b’s planned medium-earth-orbit satellite constellation using Gilat’s SkyEdge platform, Gilat said. The terminals will include automatic tracking and seamless handoff of the constellation’s satellites, Gilat said. Specialized terminals are expected for cellular backhaul services, small businesses and ISP backhaul, Gilat said. O3b hopes to begin offering satellite broadband service to Africa and to countries elsewhere in the Third World by 2011.