CHANDLER, Ariz. — Jerry Knoblach wants to bring wireless service to millions of rural Americans. His plan: Beam it down from balloons hovering at the edge of space. This isn’t just hot air. His company, Space Data Corp., already launches 10 balloons a day across the Southern U.S., providing specialized telecom services to truckers and oil companies. His balloons soar 20 miles into the stratosphere, each carrying a shoebox-size payload of electronics that acts like a mini cellphone “tower” covering thousands of square miles below. His idea has caught the eye of Google Inc., according to people familiar with the matter. The Internet giant — which is now pushing into wireless services — has considered contracting with Space Data or even buying the firm, according to one person. Mr. Knoblach, Space Data’s chief executive, declined to comment on specific partners. Google declined to comment. Expanding rural telecom services is a priority for regulators. About 36% of rural Americans don’t have Internet connections. The problem is that it’s expensive to string cable or build cellphone towers in areas with so few customers. Space Data says a single balloon can serve an area otherwise requiring 40 cell towers. Maintaining a telecom system based on gas-filled bladders floating in the sky requires some creativity. The inexpensive balloons are good for only 24 hours or so before ultimately bursting in the thin air of the upper atmosphere. The electronic gear they carry, encased in a small Styrofoam box, then drifts gently back to earth on tiny parachutes. This means Space Data must constantly send up new balloons. To do that, it hires mechanics employed at small airports across the South. It also hires farmers — particularly, dairy farmers.
Cheap, disposable hydrogen-filled balloons carrying miniature versions of cellphone towers may soon provide service to rural, sparsely populated areas. WSJ’s Amol Sharma visits Space Data, a company that makes the specialized balloons.
Feb 22
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