Zephyr is a high altitude pseudo-satellite, which runs on solar power. Airbus
Zephyr is a high altitude pseudo-satellite, which runs on solar power. Airbus
Zephyr is a high altitude pseudo-satellite, which runs on solar power. Airbus
Zephyr is a high altitude pseudo-satellite, which runs on solar power. Airbus

High-altitude platforms: why the way to bring the world online hangs in the sky


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Internet access is becoming a human right. The World Bank has described it as a basic necessity for economic and human development. And yet, according to Unesco figures, more than half of the world's households are not connected to the internet. In many cases, those households are unable to afford it, but nearly 600 million people around the globe could not access it even if they had the money. There is no infrastructure and no mobile broadband coverage to connect them.

There is, however, a solution to this problem that uses neither cables nor masts, but our skies. A small number of aircraft, equipped with mobile networking equipment, are currently moving around the stratosphere, bringing connectivity to areas beneath them. And the ambitions for this technology are growing. In recent weeks, Deutsche Telekom has partnered with a British company, Stratospheric Platforms, to test a high-altitude aircraft with the aim of delivering blisteringly fast internet connection to urban areas. The vision: 5G internet access for entire nations, all via the stratosphere.

The technology is called HAPs, or high-altitude platforms. They sit above the weather and above air traffic, at a height of around 20 to 25 kilometres, where they remain for days or even weeks at a time. Perhaps the best-known examples are the massive, solar-powered balloons floated by Google as part of its Loon project, founded in 2011. Their capabilities were first demonstrated to the world when Hurricane Maria hit Puerto Rico in September 2017; Google partnered with local telecom companies to ensure that data kept flowing via balloons when traditional networks were disrupted. The experiment was repeated in May 2019, when an earthquake of magnitude 8 hit northern Peru. They saw their first commercial implementation earlier this year, providing 4G access to a 50,000-square-kilometre area of western Kenya.

Loon is a network of stratospheric balloons designed to bring Internet connectivity to rural and remote communities worldwide. Loon
Loon is a network of stratospheric balloons designed to bring Internet connectivity to rural and remote communities worldwide. Loon

However, development of HAPs is far from easy. Five years ago, Facebook chief executive Mark Zuckerberg had big ambitions in this area; he launched Project Aquila to test whether solar-powered drones could expand internet access into new parts of the world. But after a number of setbacks – including a crash landing – the venture was abandoned.

"A successful HAPs system has to fuse aerospace, aeronautics, telecommunications and many other fields," says Ogbonnaya Anicho, lecturer at Liverpool Hope University in the UK and researcher of high altitude connectivity. "There have been a lot of struggles with aeronautical design, the elephant in the room being how to keep these gigantic vehicles flying in the stratosphere. During the day you can harness solar power and store it in batteries, which you can feed off at night. But what happens in seasons with less sunlight? Google's commercial targets for Loon depend on the location being 15° north or south of the equator. Outside that zone, they cannot provide the service."

There have been a lot of struggles with aeronautical design, the elephant in the room being how to keep these gigantic vehicles flying in the stratosphere

Loon has also had to wrestle with the problem of air currents pushing balloons off course. Google developed clever algorithms to vertically manoeuvre them into airstreams which take them in the right direction. Instances of them crashing received publicity that was, perhaps, disproportionate to the successes being achieved, but it nevertheless provided evidence that their reliability need to be improved.

A competitor, Airbus, has developed a fixed wing HAP called Zephyr whose movements are easier to control, but such craft still have to contend with the problem of staying in the air while performing power-hungry telecom operations.

Richard Deakin, chief executive of Stratospheric Platforms, admires the work being done with solar, but expresses doubts about its ability to deliver connectivity at scale. "[Solar] can enable HAPs to stay flying for a year, but you can't do a great deal with them because the power available for the payload is so small," he says. His company's solution is to power its HAP aircraft with liquid hydrogen, allowing them to remain in the air for nine days at a time before landing, refuelling and taking off again.

“They would each cover an area of 140km in diameter, and serves tens of thousands of users in each of the cells created on the ground,” says Deakin. He says the enormous number of 5G mast installations needed to cover an entire country – estimated by the Institution of Engineering and Technology at 400,000 for an area the size of the UK – presents an enormous practical problem that airborne connectivity could solve. “You would only need around 60 of our unmanned aircraft to cover that area,” he says. It would essentially be like running a small airline.”

Anicho, however, believes that urban connectivity should not be the priority. "Rural areas have a very tough, almost impossible business case," he says. "No matter how humanitarian it is to invest in infrastructure in those parts of the world, it won't be done because there is no business justification for it. HAPs should be providing that option. I don't want to lose focus on the goal, here, which is: can we get everybody online?"

As the ongoing pandemic shapes the way we live and work, the need to get every citizen connected becomes ever stronger. The flexibility of HAPs, in whichever form they take, may help to make that possible – whether it’s bringing mobile banking to remote parts of the world, or giving much-needed extra capacity in urban areas during working hours.

To supply that from a largely unused part of the Earth’s atmosphere is, without doubt, a beautiful example of human ingenuity.

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Barings Bank

 Barings, one of Britain’s oldest investment banks, was
founded in 1762 and operated for 233 years before it went bust after a trading
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Barings Bank collapsed in February 1995 following colossal
losses caused by rogue trader Nick Lesson. 

Leeson gambled more than $1 billion in speculative trades,
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Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

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You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."