Google Inc (NASDAQ:GOOGL)’s Project Loon Will Soon Change The Economics Of Internet Access

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Dallas, Texas 06/02/2015 (Financialstrend) – Google Inc (NASDAQ:GOOGL), the search engine giant, has always put efforts to bring new products that affect the entire world. This time, the company has decided to give internet access to nearly 60% of the world’s population that has not availed internet access. This endeavor called Project Loon will soon become a reality.

Project Loon is an attempt of Google Inc (NASDAQ:GOOGL) to provide wireless internet access in the remote parts of world where internet connectivity is still an issue due to lack of infrastructure. The project includes airborne balloons that are filled with helium. These are launched in the stratosphere, at the height of 20 kilometers from surface of Earth, about twice the height of commercial airplanes. These balloons are equipped with solar electronics to facilitate wireless communication that can provide internet access.

The project has been in testing phase for last three years. The company launched the first balloon back in 2012. Since then, these balloons have travelled more than three million kilometers. The company believes that these are now ready to put in use. Google Inc (NASDAQ:GOOGL) has run several tests with major cellular carriers over the past few years. The balloons have successfully provided high speed internet connectivity to test areas in Brazil, Australia and New Zealand. Mike Cassidy, head of Project Loon, commented that the company will send enough balloons by the end of 2015 to conduct continuous run. The balloons can communicate with each other using radio frequency. There is a provision to change their relative height.

This project will soon see commercial deployment. It is evident that a major company like Google Inc (NASDAQ:GOOGL) is not interested in providing just the internet access. The expanded access will bring new internet users. Thus Google Inc (NASDAQ:GOOGL) will have more user data, which is good for the company and advertisers. However, the competition for this project is from Facebook Inc (NASDAQ:FB) which has launched Internet.org, claiming free internet access by utilizing airborne solar drones. It is yet to be seen how Google Inc’s  (NASDAQ:GOOGL) balloons make the difference.

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