O3b Networks raises $1.2 bn to build next generation internet platform

O3b Networks Limited, the developer of high-speed satellite-based internet connections said yesterday that the company has raised $1.2 billion to construct and launch its first satellites, which will provide low-latency, fibre-quality internet connectivity to around 70 per cent of the global population.

Jersey, Channel Islands-based O3b Networks founded in 2008, is building a new fibre-quality, satellite-based, global Internet backbone for telecommunications operators (Telcos), and internet service providers (ISPs) in emerging markets.

The name 'O3b' stands for 'Other 3 billion', referring to nearly half of the world's population that is not adequately served with broadband internet access.

The company has investment and operational support from the world's largest satellite operator SES, global internet giant Google, as well as many other global investors like Liberty Global, HSBC Principal Investments, Northbridge Venture Partners, Allen & Company, Development Bank of Southern Africa and others.

O3b aims to provide Telcos and ISPs with a low-cost, high-speed alternative to connect their 3G, WiMAX, and fixed-line networks to the rest of the world.

Of the total funding, $410 million will be equity financing by existing as well as new investors, while the balance will be through debt facilities from global financial institutions.