O3b Networks

O3b Networks, Ltd. is a network communications service provider building and operating a medium Earth orbit satellite constellation. The network combines the relatively large reach of satellite with high speed and medium latency to deliver satellite Internet services and mobile backhaul services to emerging markets. The company was founded by Greg Wyler in 2007. The name "O3b" stands for "[The] Other 3 Billion", referring to the population of the world where broadband Internet is not available without help.

O3b is financially backed by SES, Google, HSBC, Liberty Global, Allen & Company, Northbridge Venture Partners, Soroof International, Development Bank of Southern Africa, Sofina and Satya Capital. In April 2016, SES announced that (subject to regulatory approvals which are expected to be completed by the end of 2016) it will pay $20 million to increase its fully diluted ownership of O3b from 49.1% to 50.5%, taking a controlling share in the company.[1] In May 2016, SES said it would raise another $710 million to purchase all of O3b Networks, exercising a call option with O3b minority shareholders and eliminating the possibility of an O3b stock offering.[2]

O3b is primarily intended to serve mobile operators and Internet service providers, providing for voice and data. The network currently consists of twelve Ka-based satellites in the O3b satellite constellation orbiting at an altitude of 8,000 km, which is less than one quarter of the altitude of geostationary satellites, significantly reducing satellite latency.

Rendering of O3b satellite coverage areas and visibility around the Equator.

After initially planning to launch in 2010,[3] the first four satellites were launched on June 25, 2013.[4][5] A further four satellites were launched in July 2014, and another four in December 2014. Four more are scheduled for launch in 2018 and the remaining four in 2019, bringing the constellation to 20 satellites, including the three current satellites used as in-orbit backup.[2]

Status

Operators in the Cook Islands,[6] Pakistan[7] and Nigeria[8] were among the first to prebook capacity on the O3b constellation to serve their respective markets.

O3b also announced the selection of Europe Media Port (EMP)[9] the world’s fastest growing teleport in 2009 according to the World Teleport Association – to be the first provider of Gateway Teleport services for O3b’s global network. O3b also announced a contract with ViaSat for the production and installation of Ka-band infrastructure indicating significant progress in the deployment of O3b’s Next Generation Network. The value of the ViaSat contract is approximately $47 million.[10]

The company has recently had a change of CEO once financial closure had been obtained. Mark Rigolle, the former Chief Finance Officer of SES is returning to SES. In his place, Steve Collar joins from SES World Skies where he served as Senior Vice President of Business and Market Development for SES World Skies and was formerly an O3b board member representing SES' interests.[11] This change marks the 5th CEO for O3b in three years.

O3b has attracted investment interest with SES[12] joining Google, Liberty Global, HSBC and North Bridge Venture Partners to the $465 million buyer credit facility the company secured from Coface, the export credit agency acting on behalf of the French government.[13]

O3b has also recently raised a total of $1.2 billion to fully finance the construction of its satellites.[14]

The first four satellites were launched on a Soyuz-2 (rocket)/Fregat-MT rocket by Arianespace on June 25, 2013 at 19:27:03 UTC,[4] and are currently in orbit and functioning properly.[4] After discovering a hardware defect in the initial satellites, O3b postponed the planned September 2013 launch of four additional satellites so repairs could be made.[15] The second four satellites were launched by the same type of rocket from the Space Center in French Guiana, on July 10, 2014.[4][16] The third launch of four took place in December 2014.

In July 2014, SES Government Solutions (a subsidiary of O3b investor, SES) received approval to offer O3b services on their General Services Administration (GSA) Schedule allowing SES GS to be the first distribution partner to offer O3b capability directly to the US Government.[17]

In November 2014, MS Quantum of the Seas became the first cruise ship to provide fast internet to guests through O3b Networks. The service is branded "Voom" by its cruise line, Royal Caribbean International and it has since been rolled out to every ship in their fleet.

In August 2015, SES subsidiary, SES Government Solutions agreed a one-year contract with US government scientific agency, NOAA (National Oceanic and Atmospheric Administration) to supply O3b services and ground equipment to the National Weather Service Office in American Samoa, which will expand NOAA's broadband connectivity outside the continental US to provide weather, water, and climate data, and forecasts and warnings to American Samoa.[18]

In May 2016, SES said that O3b had a firm backlog of $350 million, and revenue in 2016 is expected to exceed $100 million, reaching around $680 million in 2023.[2]

In August 2016, SES Government Solutions announced a contract to provide an O3b Networks high throughput, low latency satellite communications solution for a US Department of Defense end-user. The agreement is for a 365 days-per-year service consisting of a full duplex symmetric 155 Mbps link, gateway access, a transportable 2.4m terminal, terrestrial backhaul, and maintenance and installation services, with a latency of under 200 ms per round trip. The contract also provides for additional capacity to meet surge requirements.[19]

See also

References

  1. ↑ "SES to take control of O3b Networks" (Press release). SES ASTRA. April 29, 2016. Retrieved April 30, 2016.
  2. 1 2 3 SES exercises option to buy 100% of O3b Networks, will raise new equity May 26, 2016 Space News. Accessed May 30, 2016
  3. ↑ Kyra Phillips (Jan 7, 2009). Making the Web worldwide (streaming video). CNN.
  4. 1 2 3 4 ""The journey begins" with a lift from Arianespace: O3b Networks' first four satellites are in orbit". Arianespace. 25 June 2013. Retrieved 27 June 2013.
  5. ↑ "O3b's Satellites Launch Successfully". O3b. June 25, 2013.
  6. ↑ O3b Networks and Telecom Cook Islands Sign Long Term Agreement on Bandwidth Provision for Internet Connectivity
  7. ↑ Interactive e-solutions signs exclusive national capacity agreement with O3b Networks to deploy high-speed internet to Pakistan
  8. ↑ O3b Networks signs deal with Netcom, Nigeria to provide fast and reliable connectivity to ships and offshore platforms
  9. ↑ O3b Selects Europe Media Port (EMP) as its First Gateway Teleport Operator for New High Capacity Data Network
  10. ↑
  11. ↑
  12. ↑ SES Invests In O3b Networks
  13. ↑ O3b Networks Announces Coface Backing For Proposed Financing
  14. ↑ O3b Networks raises total funding of US$1.2 billion
  15. ↑
  16. ↑
  17. ↑ "SES Receives Approval from GSA to Sell O3b Services" (Press release). SES ASTRA. July 29, 2014.
  18. ↑ "NOAA Signs First U.S. Government Deal With SES for O3b High Throughput Solution" (Press release). SES. August 17, 2015.
  19. ↑ SES Government Solutions to Provide the US Government with a High Performance Network FinanzNachrichten.de August 29, 2016. Accessed August 30, 2016

External links

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