Bloomberg: "SoftBank Relaunches 'Balloon Internet' Project Abandoned by Google"

Interest in Alternative Internet Since the Great East Japan Earthquake

Masayoshi Son, Chairman of SoftBank

[Asia Economy Reporter Cha Min-young] Japanese SoftBank is reportedly raising funds worth approximately 310 billion won to revive the 'balloon internet' project that Google had previously abandoned, according to foreign media reports.

On the 23rd, US Bloomberg News cited Japan's Nihon Keizai Shimbun (Nikkei) reporting that SoftBank plans to raise more than 30 billion yen (about 310 billion won) as early as January next year through bond issuance and other means for this project. SoftBank intends to issue its first-ever sustainable bonds, a type of special-purpose bond related to social support.

Google's parent company Alphabet had challenged the technology of providing internet by deploying multiple balloons in the stratosphere 10 to 50 km above ground instead of terrestrial base stations through its subsidiary internet communications company Loon, but liquidated the company in January this year. Loon provided 4G LTE internet service in Kenya last year but ultimately failed to generate profits and secure new investors. Alphabet explained that the liquidation was due to failure to reduce costs to sustain the business model.

The balloons used in Loon's balloon internet project were made of polyethylene, about the size of a tennis court, and powered by solar panels. Loon promoted that internet service using these balloons would provide affordable internet to remote areas where it is difficult to densely install base stations.

SoftBank has been interested in alternative internet for about 10 years. After the Great East Japan Earthquake in 2011 caused massive damage to communication networks, it began seeking alternatives to terrestrial base stations. In 2019, it invested $125 million (about 148.6 billion won) in Loon and is also developing wireless communication technology using fixed-wing unmanned aerial vehicles as base stations. In September last year, it successfully completed a 20-hour test flight in the stratosphere using a solar-powered unmanned aerial vehicle for the first time, and in September this year, it revealed that it had acquired about 200 patents related to the Loon project from Alphabet.

However, Bloomberg added that SoftBank did not provide any specific response to requests for comments regarding the bond issuance plan.