Google Invests In Broadband For Poorer Countries

Chris Wilson writes "According to the Financial Times, Google has announced their support for a new initiative called O3B to 'bring internet access to 3bn people in Africa and other emerging markets by launching at least 16 satellites to bring its services to the unconnected' by 2010. Coverage is available from Yahoo and the Wall Street Journal as well. 'The $750m project to connect mobile masts in a swath of countries within 45 degrees of the equator to fast broadband networks ... could bring the cost of bandwidth in such markets down by 95 per cent.' This will probably be the largest single investment in network infrastructure for developing countries in history. Google clearly wishes to use this project to enable broadband Internet access in developing regions, but many other things must be in place before that can happen, including fixed power infrastructure, PCs or OLPCs, technical support and skills, and useful content and services for areas with lower literacy."

Comments

Because There's Profit To Be Had

[eldavojohn]

This will probably be the largest single investment in network infrastructure for developing countries in history. Google clearly wishes to use this project to enable broadband Internet access in developing regions...

Ok. Let's get a few things straight here. Phrases like "will probably" and "clearly wishes" are indicative of slant because they don't tell me anything. Let me tell you what's clear here: Google is making an upfront investment to reach 3 billion new customers. Yes, it's great news for those people but I will spell out the only motive Google has--they do not want another homegrown Baidu popping up in Swahili or any other language. They will reach these people first and hand them Google in their native language.

Google's going to bring these people broadband at 95% of their current price and Google's going to make massive profit. In 2007, Google netted $4.2 billion. They are supporting O3B because it is a smart business move and their stock will go up because of it.

I'm not saying this is a bad thing, it's great for the people but Google's only motive is "How do we reach the other 1/2 of the world's population with our services?"

Re:Because There's Profit To Be Had

[Whiney Mac Fanboy]

Google is making an upfront investment to reach 3 billion new customers.

Not 3bn new customers - 6bn new products. Google will sell these eyeballs to advertisers.

*shrug* not too bad a deal methinks.

Re:Because There's Profit To Be Had

[locster]

If google make profit by helping African economies develop and taking a slice of the subsequent pie then I say good luck to 'em.

Re:Because There's Profit To Be Had

[Alwin Henseler]

Google's going to bring these people broadband at 95% of their current price

Ehmm... TFA talks about "bring the cost of bandwidth in such markets down by 95 per cent". Doesn't that mean: take 95% off, leave 5% (1/20 th) of previous cost?

Re:Because There's Profit To Be Had

[the_womble]

Illiteracy rate is high, many countries don't have stable and enough electricity let alone the number of PCs to use the inet effectively.

I live in a third world country, well within the area this will cover. Most people are literate, most households have electricity, you can buy a second hand PC in any town for a few tens of dollars (and about a quarter of the population have bought mobile phones, which start at similar prices). Even as it is, broadband is available in cities and is perfectly commercially viable.

Yes there are a lot of people who cannot benefit from this, but there are also a lot who can.

Take a look at the number of cars on the road in the third world. Anyone who can afford a car, can easily afford a cheap computer and internet connection. Anyone who can afford a motorbike can probably afford it!

You seem to think that people either live at first world standards, or on the edge of starvation. Most of the world's population is somewhere in between.

Re:Because There's Profit To Be Had

[Yvanhoe]

I'm not saying this is a bad thing, it's great for the people but Google's only motive is "How do we reach the other 1/2 of the world's population with our services?"

Only motive ? How about saying they found a way to do humanitarian actions while improving their profits ? I really admire such actions. They take risks, they bet on the fact that helping the world can be a profitable thing when done right. I wish we see more of these.

Re:Because There's Profit To Be Had

[mtairhead]

Of course, you're wrong. Besides the fact that there are plenty of people who can read and afford computers, you make no mention of the #1 driver for economic and improvement: business!

Why plop down a warehouse or plant in a nation with no dependable way of communicating with it? Access to the Internet will attract business, which will create jobs and bring an influx of money.

Further, PCs aren't the only things that can benefit humanity with access to the Internet. You're thinking inside the box. Developing nations have solved many problems without our confined 1st World ideas. I don't believe you need to sit an Tanzanian in front of Wikipedia to call the Inet an African success story. Creative uses will come from uncommon and unexpected corners, just as they always have. This is just one more tool, and one from which Google /will/ profit.

PS - Once you're in the position to call $3 billion dollar shots like these, I don't call you an accountant anymore. You're management.

Re:LEO means intermittent

[locster]

45 degrees either side of the equator is a pretty wide 'belt'.

How about this country?

[Chemisor]

I'm still waiting for broadband here in the US. That last mile is a killer...

Re:LEO means intermittent

[Whiney Mac Fanboy]

16 satellites in LEO, meaning intermittent coverage, plus they will need spares and steerable ground antennas.

They're going to use the satellites for long haul & 3g masts for last mile.

and it seems pretty expensive for covering only a belt around the equator.

45 degrees is half way to the north/south poles.

THHGTTG

[goose-incarnated]

Marketing is great, innit?

"They cannot afford our product, so lets artificially accelerate their development until such point that they can, and then sell them out product"

Not that I, paying ZAR70 per gig for internet access, mind at all. Hell, bring it on - those monopolistic providers here in Africa, please, by all means, hand their asses to them.