Hughes to invest US$ 50 million in Bharti-UK consortium for OneWeb

US-based satellite broadband player, Hughes Network Systems, plans to invest US$ 50 million to join a consortium of India’s Bharti Enterprises and the UK government that recently won a bid to take over OneWeb – the British firm that went bankrupt while trying to build a constellation of satellites to deliver wireless broadband globally.

It is estimated that this in-principle investment by Hughes will translate in a minority stake of around 5 per cent in OneWeb. Though, actual stake size is still under discussion and no statement was released by either of the companies.

“Hughes’ investment underlines OneWeb’s exciting commercial prospects, reflected in ongoing discussions with some of the world’s leading strategic and financial investors,” said Bharti Enterprises chairman Mr Sunil Bharti Mittal.

Hughes plans to continue the association with OneWeb as a technology and distribution partner. It was amongst the original hold of investors in OneWeb before the latter collapsed into bankruptcy in March.

Hughes president Mr Pradman Kaul said, “The company’s strengthened involvement with OneWeb stems from its position as a leading geo-stationary satellite operator and ground network innovator along with its partnership with Bharti and its longstanding relationship with the UK through its business operations in both countries.”

The company received investment of US$ 500 million from Bharti and the UK government separately earlier this month. It aims to provide high-speed, low-latency broadband services, especially in rural areas, and take on the likes of Elon Musk’s SpaceX Starlink and Jeff Bezos’s Amazon-linked Project Kuiper. Bharti and UK government are each likely to reportedly hold 45 per cent each in OneWeb, with Hughes and other existing investors retaining the balance 10 per cent.

Hughes Communications India (HCIL), the majority-owned Indian arm of Hughes Network Systems, and Bharti Airtel are also in the process of combining their satellite broadband operations in India. Though, the merger is awaiting regulatory approvals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.