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Alphabet’s Subsidiary Loon Seeks Ways to Earn

Alphabet’s Google has bets on the balloon to deliver cell service. And it will soon face a critical test amid the uncertainties on the viability of the technology by some potential clients.

Loon, the firm behind the effort, announced its balloons would touch Kenya in the coming weeks for its initial commercial trial. Aside from that, Telkom Kenya, one of the leading carriers in the nation, will conduct a test. It will allow mountain villagers to purchase 4g services at a market-rate price for an unknown period. Also, this month, the aviation authority of Kenya will sign its final approval.

In addition to that, Loon, which hatched in 2011, wants to carry connectivity to isolated parts of the world. And it is by floating solar-powered networking gear to areas which cell towers are too expensive to establish.

Moreover, its tennis-court-sized helium balloons have demonstrated utility. And Loon triumphantly allows wireless carriers in Peru and Puerto Rico to use balloons for free to replace cell phone towers toppled by natural disasters.

Also, Kenyan officials feel enthusiastic because of attempting to take more citizens online.

On the other hand, the firm also courted five other wireless carriers across the four continents. However, the executives of these carriers stated that Loon is not competent now, and it may never be. Adding to that, those companies, including Telkom Indonesia, Vodafone New Zealand, and French giant Orange SA, wants the Alphabet’s subsidiary to present its technology as dependable, secure, and profitable for carriers.

In the same van, chief technology and information officer for Orange Middle East and Africa, Hervé Suquet wishes that Loon will prove its ability in Kenya.

Suquet stated, “If the results are positive, we would then be potentially interested.”

Alphabet’s Stakes

Google’s parent Alphabet might face a high level of stake. The international conglomerate promoted some small subsidiaries like Loon. And it became crucial to its next act, which is to diversify beyond ad sales. However, its self-describes other bets like the self-driving car company Waymo, make 0.4% of revenue.

Then, another cloud was a lawsuit suspecting Google swiped a competitor’s balloon ideas in 2008. And the federal court will start a trial on August 2 in San Jose, California. If Loon loses, the company needs to pay jury-determined damages to Chandler, Arizona-based Space Data that sells communication balloons to the U.S. military.

But Loon declared that it would firmly protect itself.

Alastair Westgarth is the chief executive of the Alphabet subsidiary which officially formed last July. And he showed confidence in its strategy. According to Westgarth, several new entities will soon sign contracts with Loon. Over the past year, the firm’s workforce tripled to more than 200 employees.

Also, Loon allured outside funding. This year, an arm of Japanese telecoms company SoftBank, which develops internet drones, invested $125 million as part of a partnership. And it stimulated the previously unreported interest of Loon in industrial applications. For example, it is serving farms and offshore oil wells.

Then, Westgarth stated, “We have a big head start and are well positioned to connect a lot of people. And seize the opportunities that come with it.”

 

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