The satellite operator is set to acquire approximately 24% of satellite internet constellation developer OneWeb, which already has several corporate backers.
Satellite operator Eutelsat Communications agreed yesterday to invest $550m in UK-headquartered satellite internet technology developer One Web, in return for a stake sized at about 24%.
OneWeb is building a 648-satellite constellation intended to provide broadband coverage to remote areas from low orbit. The initial system is expected to be operational by the end of this year and it said Eutelsat’s capital will take it most of the way towards its funding goal.
The company had raised a total of $3.4bn from investors including telecommunications and internet group SoftBank’s Vision Fund, conglomerate Bharti Enterprises and satellite services provider Hughes Network Systems before filing for bankruptcy in March 2020.
Bharti subsequently joined the UK government to buy OneWeb’s assets for $1bn in July the same year. SoftBank paid $350m for a 30% stake in the resurrected company in January 2021 while Hughes Network Systems invested $50m.
Eutelsat CEO Rodolphe Belmer said: “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.
“OneWeb will become our main growth engine outside our broadcast and broadband applications, as we continue to maximise cash-flow extraction from our highly profitable heritage business and grow our fixed broadband vertical leveraging our geostationary assets.”