UK-based low-Earth orbit (LEO) satellite company OneWeb has announced a further $500 million investment from Bharti Global, marking another significant development in a busy week for the firm.
Last year, OneWeb secured $1 billion in funding from the UK Government and Bharti Global.
Rt. Hon Kwasi Kwarteng, MP, Secretary of State for BEIS, commented:
“Today’s additional $500 million investment in OneWeb by Bharti marks yet another vote of confidence in the company from the market. It’s clear that investors see a strong future for this incredible, cutting-edge company and a robust commercial case for investment.
The government’s equity stake in OneWeb not only allows the UK to deploy low-Earth orbit technology but will put our country at the forefront of the small satellite market which is set to rapidly expand over the years ahead.
Now that OneWeb has met its original funding objective, I truly believe the company is fast becoming an asset to the British taxpayer, and I look forward to seeing their ambition realised to provide global broadband connectivity next year.”
The UK Government remains a major shareholder, but Bharti’s latest injection makes it the largest investor, now holding a 39 percent stake in OneWeb.
Shravin Mittal, Managing Director of Bharti Global, added:
“In just a year and during a global pandemic, together we have transformed OneWeb, bringing the operation back to full-scale. With this round of financing, we complete the funding requirements.
We will continue to work alongside our partner shareholders, UK Government, SoftBank, and Eutelsat, to realise this unique opportunity.”
OneWeb nearly ceased operations last year after critical funding was withdrawn at the start of the COVID-19 pandemic. Since then the company has rebounded, attracting additional investment and rebuilding momentum.
Beyond the UK Government and Bharti Global contributions, OneWeb received $400 million from SoftBank and Hughes Network Systems in January 2021. In April, GEO satellite operator Eutelsat acquired a 25 percent stake in the business.
Sunil Bharti Mittal, Executive Chairman of OneWeb, said:
“OneWeb represents a unique opportunity for investors at a key moment in the commercialisation of space.
With its global ITU LEO spectrum priority, telco partnerships, successful launch momentum, and reliable satellites, OneWeb is ready to serve the vital needs of high-speed broadband connectivity for those who have been left behind.
Nation-states can accelerate their universal service obligations, telcos can strengthen their backhaul, and enterprises and governments can support remote installations.”
Earlier this week OneWeb and BT announced a partnership to explore improving connectivity in some of the UK’s hardest-to-reach areas, aiming to extend high-speed broadband to rural and underserved communities.
OneWeb is on track to complete about 40 percent of its planned network after an upcoming launch scheduled for 1 July at 08:48 ET / 12:48 UTC / 13:48 BST (and 21:48 local time UTC+9) from Russia’s Vostochny Cosmodrome.
(Image Credit: Roscosmos, Space Center Vostochny, TsENKI)
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