Participated · Equity · Nov 2011

O3b Networks operates a next-generation satellite network that combines the reach of satellite with fiber-like speed to provide low-cost, high-speed, low-latency Internet and mobile connectivity to telecommunications operators, ISPs, enterprise and government customers. The company began full commercial operations in September 2014 and supports connectivity for more than 40 customers worldwide. More than 50% of those customers upgraded their service commitments within the first year of commercial operation. O3b is the No.1 operator in the Pacific and has a notable partnership with Royal Caribbean that transformed cruise connectivity. The company says it is the fastest-growing satellite operator in history and plans to expand capacity to meet growing demand from telco, energy and government customers. O3b Networks is developing a fiber-quality, satellite-based global Internet backbone aimed at telecommunications operators and ISPs in emerging markets. Its system uses Medium Earth Orbit satellites placed roughly 8,000 km from Earth to provide low-latency, fiber-like connectivity. The company planned an initial fleet of eight MEO satellites scheduled to launch in early 2013 and has secured financing to add four more satellites planned for 2014. The four additional spacecraft will nearly double fleet capacity and are expected to increase throughput by more than 90% via additional beams and improved link efficiency. O3b reports it has sold a little over one third of its capacity and has a contracted backlog of over US $600 million. The company targets lowering the cost per Mbps delivered into the developing world and serving 3G, WiMAX and fixed-line networks with carrier-class reliability. O3b Networks is a Channel Island–based, three-year-old startup focused on satellite-based Internet technology for ISPs and telecom companies targeting emerging markets. Its planned constellation places satellites about 8,000 kilometers above Earth—roughly four times closer than geostationary satellites—to deliver low-latency, fiber-quality connectivity. The company says this design can reach approximately 70% of the world’s population with fiber-quality Internet service. O3b plans to launch its first commercial service in the first half of 2013 after deploying the initial eight satellites. Those first eight satellites are scheduled to be launched by Arianespace on a Soyuz launcher from French Guiana. The company already has about 10 customers with signed deals valued at $500 million to $600 million. Google has been a backer in every round of financing.