SOFTBANK AND HUGHES MAKE $400 MILLION BET ON ONEWEB

NEW DELHI: Japan’s Softbank Group and Hughes Network Systems Llc have invested $400 million in Oneweb, a broadband satellite communications company acquired by a consortium of investors comprising the UK government and Sunil Mittal-led Bharti Global.

The investment will take the total funding in Oneweb to $1.4 billion, a company statement said.

The UK government and Bharti Global had invested $500 million each to acquire Oneweb under a bankruptcy resolution process.

As part of the investment, Softbank will gain a seat on Oneweb’s board. Hughes Network has infused capital through its parent Echostar, and is an ecosystem partner, developing essential ground network technology for Oneweb’s system, the company said.

“The capital raised to date positions the company to be fully funded for its first-generation satellite fleet, totalling 648 satellites, by the end of 2022,” it said.

Oneweb plans to start highspeed internet services in India by mid-2022.

In December, it had launched 36 satellites from Vostochny Cosmodrome in Russia, taking the total to 110. Oneweb aims to have a total of 648 low-earth orbit satellites as part of its plan to deliver highspeed and low-latency broadband services globally.

“Both (Softbank and Hughes) are deeply familiar with our business, share our vision for the future, and their commitment allows us to capitalize on the significant growth opportunity ahead for Oneweb,” Bharti Enterprises chairperson Mittal said.