Alphabet spins off laser-based Internet backbone provider Taara

Alphabet spins off laser-based Internet backbone provider Taara

  • 17.03.2025 13:27
  • arstechnica.com
  • Keywords: danger, danger

Alphabet spins off laser-based internet provider Taara to compete with Starlink. Using ground terminals, Taara aims to deliver high-speed connectivity in remote areas and urban environments, offering a potentially cheaper and faster alternative to satellite-based systems.

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Alphabet

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Analyst rating: Buy

Alphabet is spinning off Taara to compete with Starlink and provide internet services in remote areas.

Taara

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Analyst rating: N/A

Taara is being spun out by Alphabet to expand its laser-based internet service, aiming to connect remote regions and challenging Starlink's dominance.

Context

Alphabet Spins Off Laser-Based Internet Backbone Provider Taara

Overview

  • Date of Spin-off: March 17, 2025
  • Parent Company: Alphabet (via its "moonshot" incubator X)
  • Founder: Mahesh Krishnaswamy

Technology and Capabilities

  • Laser-Based Connectivity: Uses laser beams to transmit data at 20 gigabits per second over 20 km.
  • Deployment: Terminals can be installed on poles, trees, or buildings in hours.
  • Current Projects:
    • A 5 km laser link over the Congo River between Brazzaville and Kinshasa.
    • Supplements mobile networks at events like the Coachella music festival.

Market Presence

  • Countries Served: 12 countries, including India and parts of Africa.
  • Partnerships: Collaborates with telecom companies such as Bharti Airtel and T-Mobile to extend fiber-optic networks.

Competitive Landscape: vs. Starlink

  • Starlink Statistics:
    • Revenue: $9.3 billion in 2024 from 4.7 million subscribers.
    • Technology: Relies on radio signals, limiting bandwidth per area and struggling in dense urban environments.
  • Advantages of Taara:
    • Faster deployment and lower costs compared to satellite-based systems.
    • No need for spectrum auctions or rocket launches.

Strategic Advantages

  • Technological Superiority: Laser beams avoid radio frequency interference, offering higher bandwidth and reliability.
  • Scalability: Plans to develop a tiny silicon photonic chip to reduce terminal components and potentially replace Wi-Fi with Li-Fi (light-based internet).

Long-Term Implications

  • Shift in Connectivity: As traditional radio frequencies become scarce, light-based systems like Taara’s are expected to dominate.
  • Regulatory and Market Impact: Minimal regulatory hurdles compared to satellite deployments, positioning Taara for rapid global expansion.

Financials and Funding

  • Funding: Series X Capital has backed the start-up; financial details (seed funding, targets) undisclosed.
  • Alphabet’s Stake: Retains a minority stake post-spin-off.

Future Plans

  • Next-Generation Technology: Development of a silicon photonic chip to enhance connectivity and reduce infrastructure requirements.
  • Global Expansion: Targets underserved regions with high internet costs and limited access.

This spin-off underscores Alphabet’s strategic focus on innovation and scalability in the connectivity sector, aiming to address the global digital divide while competing with established players like Starlink.