Eutelsat takes significant equity stake in LEO operator OneWeb
OneWeb has secured $550 million in funding from Eutelsat Communications, bringing OneWeb’s total funding to $1.9 billion in fresh equity. This investment from one of the world’s most experienced and largest global operators 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.
Eutelsat, one of the world’s leading satellite operators, will receive around 24% equity stake in OneWeb and similar governance rights to the U.K. Government and Bharti Global, making it a significant equity partner. The investment is expected to be completed in the second half of 2021, subject to regulatory approvals.
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, 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.
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.
Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises said: “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.”
Neil Masterson, Chief Executive Officer of OneWeb, said: “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.”
Commenting on the agreement, Rodolphe Belmer, Eutelsat’s Chief Executive Officer, said: “We are confident in OneWeb’s right-to-win thanks to its earliness to market, priority spectrum rights and evolving, scalable technology.”
OneWeb has 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.
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