O3b Networks has announced plans to launch 16 satellites that will connect Africa, the Middle East and parts of Latin America to the internet. The project is backed by Google, Liberty Global and HSBC and is expected to cost around $750 million and so far has managed to raise only $65 million.

The three lead backers in O3b Networks reserve the right to contribute further to the estimated $150 to $180 million of financing in equity financing that will be needed for the project - the remainder will be financed through debt. O3b stands for the “Other 3 billion”.

This is a really goods news for the developing countries because it means that they have access to information and can benefit from it in many ways. The technology is not new but the service will cost up to 95% less than what is available today.

Entrepreneur Greg Tyler and founder of O3b thinks “This will be a especially good for Africa because so far, Africa makes up only 3.5% of the internet population and internet use has grown at a rate of 1,031.2 % (from 2000 to 2008) with Somalia having the highest growth rate.

What makes this news interesting is that Google is backing this initiative - indicating that it wants to increase the internet population so that it can benefit from it; a win-win situation.”

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