News
Eutelsat invests in OneWeb
Suggesting the move gives it a compelling entry point to a considerable LEO constellation opportunity , Eutelsat Communications is to invest in Low Earth Orbit satellite operator OneWeb for a 24 %
It plans to deliver 1.1 Tbps of capacity addressing the government , fixed data and mobility markets .
equity stake , alongside the UK Government and Bharti Global . Eutelsat will stake $ 550m (€ 456m ) in OneWeb , with closing expected in the second half of 2021 .
OneWeb plans to operate 648 satellites in low orbit ( LEO ) offering low latency . It says this first generation of satellites will offer significant regional coverage by the end of 2021 , reaching global coverage the following year . OneWeb claims it will be the first complete non-geostationary constellation with truly global coverage , significantly ahead of competing projects .
It plans to deliver 1.1 Tbps of capacity addressing the government , fixed data and mobility markets . Plans include a secondgeneration constellation that will provide significant enhancements in terms of capacity , flexibility and economics .
It anticipates annual revenues of circa $ 1 billion within three to five years following the full deployment of the constellation , with a partnership approach and profitable wholesale business model . The company says Eutelsat ’ s investment leaves OneWeb almost fully funded and the company is well advanced in terms of securing its remaining funding needs this year .
Eutelsat ’ s investment will come with similar governance rights to the UK
Government and Bharti , including board representation , where its position and expertise as one of the world ’ s leading satellite operators will help to drive the success of the new constellation . It sees Eutelsat ’ s and OneWeb ’ s resources and assets optimising both companies ’ commercial potential thanks to Eutelsat ’ s strong commercial and institutional relationships , recognised technical expertise and global geostationary fleet , and OneWeb ’ s ability to address the multiple applications requiring low latency and ubiquity .
The investment will be 100 % cash financed
through Eutelsat ’ s liquidity position of € 1.9 billion as at end-March 2021 and the $ 507m
US C-Band auction proceeds .
“ We are excited to become a shareholder and partner in OneWeb in the run up to its commercial launch and to participate in the substantial opportunity represented by the non-geostationary segment within our industry ,” said Rodolphe Belmer , Eutelsat ’ s chief executive officer .
“ We are confident in OneWeb ’ s right to win thanks to its earliness to market , priority spectrum rights and evolving , scalable technology . 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 .”
“ Today ’ s investment is another giant leap forward for OneWeb in realising its ambition to provide global broadband connectivity around the globe ,” declared UK business secretary Kwasi Kwarteng . “ 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 .”
“ We are delighted to welcome Eutelsat into OneWeb family ,” added OneWeb executive chairman , Sunil Bharti Mittal . “ As an open multi-national business , we are committed to serving the global needs of Governments , Businesses and Communities across the Globe . Together we are stronger , benefiting from the entrepreneurial energy of Bharti , extensive global outreach of UK and long-term expertise of the satellite industry at Eutelsat . OneWeb , with its innovatory approach , is poised to take a leading position in LEO broadband connectivity ”.
“ As OneWeb accelerates the deployment of its fleet and engages in discussions with potential customers , we welcome the powerful support of Eutelsat during the next exciting phase of our journey together , benefitting both companies equally ,” commented Neil Masterson , chief executive officer of OneWeb . “ Eutelsat is a great partner for OneWeb thanks to our high level of complementarity in terms of technology , assets , addressable markets , geographic reach and institutional relationships .”
IBC postponed until December
Describing the decision as “ the best and most pragmatic ”, organisers of content and technology event IBC , scheduled to take place in mid-September , have confirmed that IBC2021 will take place on December 3rd-6th at The RAI in Amsterdam . The announcement follows a decision by the IBC Partnership Board meeting to move the event .
“ Following a period of industry consultation , the IBC Partnership Board has agreed that December is the best date in terms of safety and industry readiness to engage . Our conclusion is based on the results of the recent IBC exhibitor and visitor surveys and macro evidence of Europe opening up for business ,” said Michael Crimp , chief executive of IBC . “ We really value the feedback and candid input of our community — we have always been “ By the industry , For the industry ”, and this ethos continues to guide our daily decision-making process .”
8 EUROMEDIA