Google-backed UK startup O3b has lined $1.18 billion to fund its planned satellite backhaul network for developing countries worldwide.
It has raised $770 million in debt financing from HSBC, ING, CA-CIB and Dexia, and $440 million in investment from SES, Google, Liberty Global and private equity firms, the company announced Monday.
O3b will use the funds to launch eight medium earth orbit satellites in the Ka-band, which it says will offer low latency coverage to 70% of the world’s population.
The company takes its name from the “other 3 billion,” a reference to the number of people who lack internet access. Founded by tech entrepreneur Greg Wyler in 2008, it had aimed to go into service by the end of 2010, but was hit by the financial crisis.
CEO Mark Rigolle told the FT.comthe company had lined up sales of between $500 and $600 million.
The first services will go live in the first half of 2013.
“I believe that O3b represents a major step change in the economics of connectivity for the developing world,” chairman John Dick said. “The amount of new funding and the quality of the investors reflects O3b Networks’ ability to balance important social goals while maintaining the required private sector returns.”
Thales Alenia Space has already begun building the satellites, which the BBC reports will be fitted with 12 moving antennas that will link to eight O3b ground stations.
O3b plans to launch a total of 20 satellites in the long term, the BBC said.
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