OneWeb, the satellite communications network provider [1.], announced today that it has secured $550 million in funding from Eutelsat Communications (one of the world’s leading satellite operators). That brings OneWeb’s total funding to $1.9 billion in fresh equity since it emerged from bankruptcy.
Note 1. OneWeb is a global communications network powered by a constellation of 650 Low Earth Orbit (LEO) satellites. Headquartered in London, OneWeb is enabling high-speed, low latency connectivity for governments, businesses, and communities everywhere around the world. OneWeb’s satellites, together with a network of global gateway stations and a range of User Terminals, will provide an affordable, fast, high bandwidth, low-latency communications service connected to the IoT future, and a pathway to 5G for everyone, everywhere.
This investment is a vote of confidence in OneWeb and underscores the arrival of Low Earth Orbit (LEO) satellites into mainstream long-term growth planning for major operators.
OneWeb’s 648 LEO satellite fleet will deliver high-speed, low-latency global connectivity. It’s partnership with Eutelsat, a global geostationary satellite operator, will enhance both companies’ commercial potential, leveraging Eutelsat’s established commercial reach to governments and enterprise customers in addition to its strong institutional relationships, recognized technical expertise and global fleet.
OneWeb’s ability to address multiple applications requiring low latency and ubiquity will also allow both companies to explore GEO/LEO configurations for future service integrations and packages.
OneWeb’s mission is to deliver broadband connectivity worldwide to its customers, to bridge the global digital divide by offering data connectivity, facilitating linkage to the Internet of Things (IoT) future and a pathway to 5G. OneWeb’s LEO satellite system includes a network of global gateway stations and a range of user terminals for different customer markets capable of delivering affordable, fast, high-bandwidth and low-latency communications services.
Yesterday, OneWeb successfully launched another 36 satellites into its constellation bringing the system to 182 satellites. The company has only two more launches left in its ‘Five to 50’ programme that will cement the company’s ability to start connectivity services to the United Kingdom, Alaska, Northern Europe, Greenland, Iceland, the Artic Seas and Canada, with global service available next year.
After OneWeb completes the full deployment of the constellation, the company anticipates annual revenues of approximately $1 billion in year three or soon thereafter, thanks to its partnership driven, wholesale business plan.
OneWeb Mini-satellite Constellation for Global Internet Service
Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises said: “We are delighted to welcome Eutelsat into the OneWeb family.
“As an open multi-national business, we are committed to serving the global needs of governments, businesses and communities across the world. Together we are stronger, benefitting from the entrepreneurial energy of Bharti, the extensive global outreach of the UK Government and the expertise in the satellite industry at Eutelsat. OneWeb, with its innovative and disruptive approach, is poised to take a leading position in LEO broadband connectivity.”
Business Secretary Kwasi Kwarteng said: “Today’s investment is another giant leap forward for OneWeb in realising their ambition to provide global broadband connectivity around the globe.
“Eutelsat brings over forty years of experience in the global satellite industry and this exciting new partnership puts OneWeb on a strong commercial footing, and the UK at the forefront of the latest developments in low Earth orbit technology.
“This comes alongside yesterday’s exciting news that a further 36 satellites were launched into space and demonstrates the momentum behind OneWeb and the promising efforts to provide connectivity to some of the world’s most remote places.”
Neil Masterson, Chief Executive Officer of OneWeb, said: “We are delighted with the investment from Eutelsat, which validates our strategy, technology and commercial approach. We now have 80% of the necessary financing for the Gen 1 fleet, of which nearly 30% is already in space. Eutelsat’s global distribution network advances the market entry opportunities for OneWeb and we look forward to working together to capitalise on the growth opportunity and accelerate the pace of execution.”
Commenting on the agreement, Rodolphe Belmer, Eutelsat’s Chief Executive Officer, said: “We are excited to become a shareholder and partner in OneWeb in the run up to its commercial launch later in the year and to participate in the substantial opportunity represented by the LEO segment within our industry. We are confident in OneWeb’s right-to-win thanks to its earliness to market, priority spectrum rights and evolving, scalable technology. With over 40 years’ expertise in the global satellite industry, we look forward to working alongside the UK Government, Bharti and the other shareholders to open new opportunities and market access to ensure OneWeb maximizes its potential.”
- OneWeb, based in the UK, filed for Chapter 11 bankruptcy at the end of March 2020 after failing to secure $2 billion financing from lead shareholder SoftBank.
- In January, Japan’s SoftBank Group and Hughes Network Systems LLC had invested $400 million in OneWeb.
- The UK government and Bharti Global invested $500 million each to acquire OneWeb under a bankruptcy resolution process.
- OneWeb plans to start high-speed internet services in India by mid-2022.
- In November, Mittal told Mint that OneWeb will boost rural broadband connectivity in India and other developing countries, including those in Africa.
- For 5G wireless service, satellite network could play an important role as it will reach areas where fiber and radio airwaves cannot penetrate. However, there are no standards for satellite based 5G networks (IMT 2020 and 3GPP specs are for terrestrial wireless operation).
- Also, the cost of using a satellite network is the highest among the three mediums, and thus, fiber and terrestrial wireless spectrum will be the preferred modes of transmission of data wherever they will be available, he added.
OneWeb, the Low Earth Orbit (LEO) satellite communications company that’s emerged from bankruptcy is jointly owned by the UK Government and Bharti Global. The company today announced that it has secured additional funding from SoftBank Group Corp. (“SoftBank”) and Hughes Network Systems LLC (“Hughes”), bringing OneWeb’s total funding to $1.4 billion. The capital raised to date positions the Company to be fully funded for its first-generation satellite fleet, totaling 648 satellites, by the end of 2022.
Prior to the latest funding round, the UK government and Bharti Global held 42.2% stake, respectively in OneWeb with other partners holding the balance 15.6%. “The capital raised to date positions the company to be fully funded for its first-generation satellite fleet, totaling 648 satellites, by the end of 2022,” as per a statement released by OneWeb.
Currently, satellite internet is a great option for residents of rural or suburban areas. Along with basically unlimited availability, satellite internet also offers Wi-Fi connectivity and speeds fast enough for streaming services. In addition to OneWeb, Starlink/SpaceX, Kuiper/Amazon, Boeing and Telesat are investing heavily into LEO satellites, aiming to launch thousands of low-orbiting satellites in coming years.
OneWeb’s mission is to deliver broadband connectivity worldwide to bridge the global Digital Divide by offering everyone, everywhere access including to the Internet of Things (IoT) future and a pathway to 5G.
OneWeb’s LEO satellite system includes a network of global gateway stations and a range of user terminals for different customer markets capable of delivering affordable, fast, high-bandwidth and low-latency communications services. In December 2020, OneWeb launched 36 new satellites, built at its Airbus Joint Venture assembly plant in Florida, USA, bringing the Company’s total fleet to 110 satellites, all fully-functioning and benefitting from International Telecommunication Union spectrum priority.
Sunil Bharti Mittal, Executive Chairman of OneWeb, commented, “We are delighted to welcome the investment from SoftBank and Hughes. Both are deeply familiar with our business, share our vision for the future, and their commitment allows us to capitalise on the significant growth opportunity ahead for OneWeb. We gain from their experience and capabilities, as we deliver a unique LEO network for the world.”
Secretary of State, BEIS, The Rt. Hon. Kwasi Kwarteng, MP said: “Our investment in OneWeb is part of our continued commitment to the UK’s space sector, putting Britain at the forefront of the latest technological advances. Today’s investment brings the company one step closer to delivering its mission to provide global broadband connectivity for people, businesses and governments, while potentially unlocking new research, development and manufacturing opportunities in the UK.”
Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank, said, “We are excited to support OneWeb as it increases capacity and accelerates towards commercialisation. We are thrilled to continue our partnership with Bharti, the UK Government and Hughes to help OneWeb deliver on its mission to transform internet access around the world.”
Pradman Kaul, President of Hughes, remarked, “OneWeb continues to inspire the industry and attract the best players in the business to come together to bring its LEO constellation to fruition. The investments made today by Hughes and SoftBank will help realise the full potential of OneWeb in connecting enterprise, government and mobility customers, especially with multi-transport services that complement our own geostationary offerings in meeting and accelerating demand for broadband around the world.”
Neil Masterson, CEO of OneWeb, added “OneWeb’s mission is to connect everyone, everywhere. We have made rapid progress to re-start the business since emerging from Chapter 11 in November. We welcome the investments by SoftBank and Hughes as further proof of progress towards delivering our goal.”
In connection with the investment, SoftBank will gain a seat on the OneWeb Board of Directors. Hughes is an investor through its parent company EchoStar, and also an ecosystem partner, developing essential ground network technology for the OneWeb system.
Additionally, OneWeb has reduced its request for US market access from 47,884 to 6,372 satellites. Together with the satellites for which it is already licensed by the FCC, the total constellation size will be roughly 7,000, down from the 48,000 or so proposed last year.
According to the company, this solidification of their constellation demonstrates the commitment and vision of OneWeb’s new owners, the UK Government and Bharti Global, who are dedicated to deploying a cost effective, responsible, and groundbreaking satellite network to deliver global broadband.
The firm stated that OneWeb remains focused on launching its first-generation system of 648 satellites and is on track to start regional commercial services within a year. This streamlining of activities highlights OneWeb’s plan for global connectivity services and for future generations and possibilities for the network.
OneWeb is a global communications network powered from space, headquartered in London, enabling connectivity for governments, businesses, and communities. It is implementing a constellation of Low Earth Orbit satellites with a network of global gateway stations and a range of user terminals to provide an affordable, fast, high-bandwidth and low-latency communications service, connected to the IoT future and a pathway to 5G for everyone, everywhere. Find out more at http://www.oneweb.world
Space X and Amazon now have company in what may become a satellite broadband “space war.” A long distance race involving three of the world’s richest men has just begun!
India tycoon Sunil Mital’s Bharti Airtel plans to invest $2 billion for a 50% stake in the once bankrupt low-Earth orbit satellite constellation company OneWeb and says that company will be offering global broadband services within 18 months in Alaska and the UK.
”By May-June of 2022, which is less than 18 months, OneWeb’s constellation will cover the entire globe, every square inch of this world,” the founder and chairman of Bharti Enterprises said Wednesday at a conference hosted by the United Nations’ International Telecommunication Union and Saudi Arabian communication regulator CITC.
OneWeb says it will resume launches of its satellites with a Soyuz launch scheduled for Dec. 17 from the Vostochny Cosmodrome. Credit: GK Launch Services
Elon Musk’s SpaceX rockets have launched over 500 satellites for the Starlink constellation since OneWeb went into bankruptcy in March. Starlink is now testing broadband internet service with potential customers. Unlike OneWeb, Starlink’s service isn’t set to cover the extreme north and south of the planet for now, offering its rival a potential niche serving governments, shipping and aviation in remote regions.
“We welcome competition,” Mittal said. “We fight like hell in the marketplace.” Later generations of OneWeb satellites could provide global positioning capabilities, he added.
OneWeb has put 74 of an initial 648 planned satellites in orbit so far, and plans to resume launches this month. It’s not yet secured all the funding it needs to complete the constellation. Mittal estimated the overall cost at between $5.5 billion and $7 billion and said the remaining shortfall is between $2 billion and $2.5 billion — with half of that to be covered by Bharti and the British government. As for raising further capital with other investors, he said: “I don’t see that to be an issue.”
“There are still too many places where broadband access is unreliable or where it doesn’t exist at all. Kuiper will change that. Our $10 billion investment will create jobs and infrastructure around the United States that will help us close this gap,” Amazon senior vice president Dave Limp said in a statement.
Amazon has not outlined a timeline for Kuiper and the FCC said the company has not finished the satellites’ design.