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Two days ago, this site featured a write-up of a Spaceflight Now article that made several claims about O3b Networks. I received an email from O3b Networks CEO, Greg Wyler, where he clarified aspects of the original article.
Since any negativity, even in this remote and barren part of the blogosphere, could possibly have an impact on the fate of O3b Networks, I have decided to delete my previous post. O3b’s efforts are critical to improving the connectivity situation for the Pacific Islands and if this blog played some role in hindering their efforts, then I could not have that hanging on my conscience as I have a great deal of respect for what Greg and his crew are trying to accomplish.
You will not find those assertions repeated on this site, but if you are interested to know, you can follow the link to the Spaceflight Now article.
The response from Greg Wyler, via email:
O3b Networks secured an alternative launch vehicle well before the bankruptcy filing due to Sea Launches inability to meet its contractual obligations. The statements attributed to Sea Launch are not accurate so we cannot comment on why they said them.
Again from Greg, on the alleged downsizing of the O3b satellite fleet:
The O3b Networks system has a scalable fleet based on demand, and customer contracts have exceeded projections every quarter. For instance at the end of Q2 we posted approximately 571m of backlog which is significantly above plan and demonstrates the absolute need for low cost, low latency backhaul.
For now, it appears the launch is on track and will allow O3b to launch service as scheduled, by late 2010. With demand for O3b’s services greater than anticipated, the launch of the 2nd set of 8 satellites also looks like it will become reality. With a constellation of 16 satellites, O3b Networks will provide low-cost, low-latency backhaul service for developing countries that right now have no access to such service.
A new international broadband cable landed on Sydney’s north shore. Stretching 4787km to Guam, the Pipe Networks project, dubbed PPC-1, offers Australian broadband users the promise of significantly lower Internet costs.
Landing a submarine cable is no small task (Source: SPIN presentation)
An Up-to-date primer on the state of submarine cable projects in the Pacific Region is titled Trans-Pacific Capacity: Possible New Price War? It includes a section that heavily references the South Pacific:
The latest construction wave began in 2006 and has been centered on the Asian and Pacific Regions. The current round of activity started with the Gondwana, Australia to New Caledonia system,Telstra’s Australia to Hawaii system and six new trans-Pacific cables. These new cables are the Trans Pacific Express, Asia American Gateway, FLAG’s Eagle, Next Generation Network, and the Unity cable projects (Source: TMC).
Out of these six projects, only one faces significant delay:
Probably the the greatest honor for this site up to this point would be having my content published in the regional Islands Business magazine. My interview with Nara Sihavong of O3B Networks was included in the April edition of the magazine. Link to Islands Business article here.
After my family moved away from Fiji when I was young, my uncle would regularly send us copies of Islands Business. As a youngster, I would read these magazines from end-to-end. For these sentimental reasons, being included in the magazine means a great deal to me.
I am taking this opportunity to thank Dionisia Tabureguci and Laisa Taga, Editor at Islands Business.
On Wednesday, I had the chance to speak with representatives of O3b Networks via conference call. I talked to Nara Sihavong who is their Regional Director of Sales, Asia-Pacific. Also on the call were John Dick, from Regional Sales and Mike Serrano, Director of Marketing. Together, they updated me on what has been going on at O3b since the launch of operations in Sept. ‘08. They also briefed me on the company’s plans in the Pacific.
ITU Ministerial Forum in Tonga, Feb 17-20: "Connecting the Unconnected"
O3b launched operations in September of 2008 with Google, HSBC, and Liberty Global as primary investors. Initial focus of the company’s sales and marketing efforts has been on African countries. However, O3b’s overarching mission is to provide improved connectivity for emerging economies, the “other 3 billion”. They have been quick out of the gate, signing agreements with several operators & ISPs, including the Microcom, the largest ISP in the Democratic Republic of Congo.
Coconut Wireless has covered O3b Networks here, here, and here. O3b’s presence at PTC ‘09 in Honolulu was the kick-off of its efforts in the Pacific. It was at PTC ‘09 where they revealed details of their plans to offer improved connectivity to the Pacfic Islands.
The recent ITU meeting in Tonga was part of this effort and the O3b team met with Ministerial level delegates to pave the way for further talks in Pacific Island nations. Nara then spent a week in Fiji, where he held meetings and discussions with the telecom operators.
He reports an enthusiastic response from the operators and adds that he sees the business development units within these companies moving with an urgency that reveals their understanding of what increased competition means for market dynamics.
Nara Sihavong
O3b also met with the members of the Communication Ministry and outlined to them the kind of support and guarantees government would have to come forward with in order to get services underway in Fiji. For ministers in the region, O3b offers a new pathway to building up ICT sectors which can become generators of employment and income.
As a provider of backhaul service, O3b would not provide direct service to customers in the region. Instead, they are looking for agreements with ILECs, CLECs, mobile providers and ISPs. For remote areas not currently served, O3b would be interested in talking to entrepreneurs interesting in building ISPs.
When agreements are in place, O3b will work with existing operators in Fiji, like FINTEL, Vodafone, TFL, and Digicel. O3b is also in similar discussion with operators in other Pacific countries. Any provider who signs on with O3b gains superior quality connectivity to the international infrastructure, something that is only possible now through two very expensive options, the Southern Cross Cable Network or GEO satellite service providers.
With O3b, at the national level, governments do not have to wait for undersea cables. A look at the following map of the region will show how O3b is mapping all the islands for service:
Proposed coverage for Pacific Islands (Please click image to view in Hi-res)
They can leap frog that process that can take years, take a look at what O3b can do and create a congruent domestic and international network to inter-connect all their remote islands:
How O3b works: A diagram of QuickStart and QuickVar Solutions
O3b would provide the backhaul service and the telecoms would deploy wireless (WiMAX or LTE) or cable networks to reach customers. Signing service agreements with O3b would mean realizing huge cost savings, which hopefully is the incentive that the incumbent telecom operators need to ensure wider propagation of services at much lower costs.
View Slideshow with company info:
PowerPoint available for download here (approx. 3 MB)
3.5m fixed terminal for Tier 1 service
The savings are significant. Telecoms in the Pacific currently pay in the range of $3,000-$6,000/mbps, where O3b can provide superior service at a fraction of that cost: $600/mbps for QuickStart.
O3b is a Medium Earth Orbit (MEO) operator meaning much smaller satellite dishes are required. This is because the satellites will orbit about 8,000 km above earth, as opposed to the 36,000 km of existing Geostationary (GEO) platforms. This is an important distinction because it means significantly lower costs for ground equipment. The shorter distance that the signal has to travel to reach a satellite in MEO orbit is what allows for low-latency connections. As MEO technology becomes more widespread and cheaper, even greater savings could be realized. Learn more about what MEO and GEO mean.
A large part of our conversation revolved around the regulatory picture in the S. Pacific. With the ADB and World Bank pushing for liberalization of telecommunications in the region, there is for the first time considerable pressure to change the status quo, which has protected monopolies and the high prices and poor service they offer.
According to Nara, O3b’s technology offering necessitates a re-examination of plans for coping with future infrastructure needs. This moment presents an opportunity for telecom operators, regulatory bodies, and those at the ministerial level to look at their long-term planning and reformulate their outlook for the next 5 and 10 years.
O3b Service can help ISPs and mobile providers address their needs
There are early signs of misunderstandings that can take place. As the people who have to ensure successful implementation of liberalization efforts, regulatory bodies have a key role to play. In Papua new Guinea, regulators require fees for licensing satellite operators to provide service. This is a deviation from normal practice and could be a hindrance to O3b’s entrance into the PNG market.
The challenge is on for all stakeholders in the Pacific to be creative in getting the most out of this technology. In my early posts on Ensuring Universal Access (Part I, Part II), I outlined how next generation wireless deployments should allow for ‘piggybacking’ for schools and emergency services. For this to be realized, this is something that regulators need to demand of operators.
John remarked that the game-changing technology is an example of how innovation is being used to overcome a real problem. Low-cost satellite offers the potential to deploy ubiquitous Internet coverage, dramatically altering the landscape of what is possible for the economies of these countries. This is something not true of submarine cable projects, which can languish on the drawing board for years without any real progress.
For many Pacific countries who have been contemplating spending many millions to get undersea fiber connections , the dream of high-speed connectivity is a step closer to reality. With O3b, they can pursue fiber-like connectivity at a fraction of the cost, allowing them to invest in other projects critical to social and economic development.
Getting from here, to where we need to be...
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