U.S. satellite broadband provider Hughes Network Systems has agreed to invest $50mn in the British government and Bharti-backed consortium buying collapsed satellite operator Oneweb.
Hughes previously partnered with OneWeb, which collapsed in late March with 74 out of a planned 650 satellites launched after top backer SoftBank Group Corp declined to provide further funding.
“This global consortium brings the right players together to fulfil the promise of the OneWeb constellation,” Hughes President Pradman Kaul said in a statement.
OneWeb has proved a money pit for its previous investors, hampered by rising costs and schedule delays, with the consortium needing to rebuild the hollowed-out firm.
The company’s commercial prospects are “reflected in the ongoing discussions with some of the world’s leading strategic and financial investors,” said Indian telecoms tycoon Sunil Bharti Mittal, who founded Bharti Enterprises.
OneWeb is a global communications company founded by Greg Wyler in 2012. The company is headquartered in London, United Kingdom and McLean, Virginia, United States with offices in California, as well as a satellite manufacturing facility in Florida – OneWeb Satellites – that is a joint venture with Airbus Defence and Space. The company was formerly known as WorldVu Satellites.
OneWeb commenced launches of the OneWeb satellite constellation, a network of more than 650 low Earth orbit satellites, in February 2019 ,and by March 2020, had launched 74 of the planned 648 satellites in the initial constellation.
OneWeb’s goal was to provide internet services to “everyone, everywhere” delivering internet connections to rural and remote places as well as to a range of markets.
However, OneWeb filed for bankruptcy on 27 March 2020, following a cash crunch amidst difficulties raising capital to complete the build and deployment of the remaining 90% of the network.
The company had already laid off approximately 85% of its 531 employees but said it will maintain satellite operational capabilities while the court restructures it and new owners for the constellation are sought.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.