<div>The $2-trillion global telecommunications industry that is currently focusing on rising data revenues could be in serious trouble if the plans of global search engine Google fructify.<br /><br />Google launched Project Loon — it’s most ambitious project ever — from close to the scenic, 87 square kilometre Lake Tekapo near Christchurch, New Zealand. Project Loon aims to make planet Earth a single giant wi-fi spot. To do that Google has launched a small network of solar powered, high altitude balloons that will float 12.5 miles initially above New Zealand — about twice the height that aircraft fly today, but well below the path of satellites.<br /><br />By installing a red-colored device on the rooftop, users will be able to be connected all the while. It is something on the lines of televisions direct to home (DTH) connectivity. But the big difference is that this time round, Google will be in a position to cover the entire globe all by itself. What it means is that people in the remotest parts of the world could get uninterrupted connectivity.<br /><br />But this is where the game changes. Since Google will be operating on the unlicensed spectrum, it need not bid for expensive spectrum like telecom service providers. Two it does not need to take permissions from national telecom regulators. It will be in a position to provide internet connectivity quickly across the world.<br /><br />This move by Google could well be the death knell for the global telecommunications industry. While it will hit service providers immediately, it could over time pose a huge challenge to submarine cable companies and telecom vendors that cater to the optic fibre, telecom towers and equipment industry.<br /><br />As thing stand, each balloon is expected to provide connectivity to an area about double the size of New York City. Since the balloons will be at a high altitude, it will be able to provide connectivity in rugged terrains where telecom operators have desisted from entering all along due to high capital expenditure issues.<br /><br />Google has not mentioned anything about the cost of the project. But, the global telecom industry does have some time to find a Plan B. After all, it will take quite a few years for the globe to be covered with the Google balloons. That time could be critical, or the telecommunications industry as we know it today may simply not exist.<br /><br />But will the world want to rely on one service provider? Seem unlikely.<br /><br /><br />anupjayaram (at) gmail.com <br />anup(dot)jayaram(at)abp9dot)in<br />9at)anupjayaram<br /> </div>
