Bharti group backed OneWeb has secured $550 million in funding from Eutelsat Communications, bringing OneWeb’s total funding to $1.9 billion in fresh equity.
According to industry sources, after the transaction, Eutelsat, Bharti Global and the UK government will each hold a 24 per cent stake in OneWeb. Further, SoftBank, Hughes Network Systems and other minority investors will collectively own 28 per cent. The investment is expected to be completed in the second half of 2021, subject to regulatory approvals.
Commenting on the development, 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.”
Further, Neil Masterson, chief executive officer (CEO), OneWeb, said, “We are delighted with the investment from Eutelsat, which validates our strategy, technology and commercial approach. We now have 80 per cent of the necessary financing for the Gen 1 fleet, of which nearly 30 per cent 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, CEO, Eutelsat, 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 more than 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 maximises its potential.”
Further, 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.”
OneWeb’s 648 LEO satellite fleet will deliver high-speed, low-latency global connectivity and its partnership with Eutelsat, will enhance both companies’ commercial potential, leveraging Eutelsat’s established commercial reach to governments and enterprise customers in addition to its strong institutional relationships, recognised 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.
