Jim Armitage: Richard Branson's satellite broadband plan could hit smaller rivals

When Will.i.am flew in to London last month to promote Sir Richard Branson’s high-profile claim he would be launching 900 broadband internet satellites above the planet, many in the industry were sceptical. Still more were furious.

The idea, to create a blanket of low-level satellites to beam internet to every corner of the world, has widely been dismissed as hailing from planet Cuckoo.

But the project’s high potential for failure was seen by some more established players as jeopardising future financing for the more realistic, smaller projects.

So I’m guessing it’s with some relief that Britain’s Avanti Communications today raised $125 million (£80 million) to fund its satellite coverage of Africa before the Branson project falls to earth.

Less ambitious operations like this may prove a better way to bring internet to the world’s poorest.