Search giant Google Inc. said on Monday that it will test 20 Loon balloons in Western Queensland starting next month with Telstra. Google’s spokesperson said: “The largest telecommunications provider in Australia will enable Google to obtain wireless spectrum and terrestrial base stations.†Google also worked with Vodafone UK in New Zealand and with Spain Telecom to test such a similar project in South America. The purpose of Loon is to receive and send information through a popular mobile communication standard, LTE, and operate a balloon to hover about 6.5 feet from the address, extending the existing wireless network to a less populated area.
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This kind of effort faces a large number of technical and regulatory challenges, but its business model is taking shape. If Google manages to start and run the business service, it plans to share revenue with the telecom operators. Mike Casidi, senior director of the Loon project, said during a conference in New York: "We are working with telecom operators to launch this service in each country." Telecom companies are trying to reach their rural population. Google hopes to make the Loon project an alternative to building new signal towers on the ground to save costs.
Google and telecom operators cooperate to test Loon project