Alphabet (Google) recently teamed up with leading Indonesian Operators to announce a test project to determine the feasibility of Project Loon. Alphabet via the 2-year-old Project Loon hopes that it could help operators extend the coverage of their existing networks, and reach further into rural and remote areas. By strategically releasing solar-powered helium balloons into the stratosphere to create an aerial wireless network, Project Loon's test system will operate on commercial 900 MHz spectrum, allowing users to gain access to coverage through commercial LTE smartphones.
In a recent analysis, ABI Research, a leader in technology intelligence, addressed the potential benefits and challenges that the implementers of this innovative feat are bound to face. In its report 'Alphabet’s Project Loon Facing Strong Headwinds', ABI assessed a number of challenges such as price, power, subscriber density and operational aspects, which will be influencing the success of the project. These factors are summarized as follows:
Price Points: Alphabet will need to determine how to make this project economically feasible for low density, economically constricted areas. How can this project aim to deliver mobile broadband service at ordinary mobile cellular service prices or lower?
Power Wattage: Project Loon's systems are currently set to generate 100 watts from solar power and will impose strict power limits on both the transmitter and the on-board electronics, making viability even more challenging.
Subscriber Density: The fundamental challenge lies in gaining enough subscribers per balloon for economic viability without overloading the system.
Operational Obstacles: Challenges include developing algorithms to appropriately map balloon positions, determining a good strategy to deal with inclement weather and addressing the concern of relying on the non-renewable resource, helium, among other challenges.
Joe Hoffman, Vice President of Strategic Technology at ABI Research
The mission of Project Loon is to reach the next five billion people in our world who currently don't have Internet access, providing coverage to emerging markets, rural and remote regions. If Project Loon is economically successful, it may have a five to ten year project lifetime as the worldwide population continues to urbanize and 4G networks migrate outward.