Space startup OneWeb, where UK taxpayers own a sizeable stake, has been given a US$0.5bn (£362mln) investment boost to enable it to reach global coverage with its satellite internet service.
A year after the UK government and Bharti Global rescued the low-Earth orbit (LEO) satellite company from US Chapter 11 bankruptcy, the Indian multinational has exercised an option to invest another US$500mln.
This follows a US$550m investment from Eutelsat (EPA:ETL) in April.
Once the investment is completed, which is expected in the second half of 2021 if regulatory approvals are received, Bharti will hold a 38.6% stake, with UK taxpayers, Eutelsat and Softbank each owning 19.3%.
OneWeb is preparing for its eighth satellite launch on 1 July, which would extend its LEO coverage to 40% of its planned network, from the Arctic region down to 50 degrees latitude.
The company's chief executive, Neil Masterson, said ten more launches will give it global coverage.
Sunil Bharti Mittal, Bharti founder and executive chairman of OneWeb added: “OneWeb represents a unique opportunity for investors at a key moment in the commercialisation of space. With its Global ITU LEO spectrum priority, telco partnerships, successful launch momentum, and reliable satellites, OneWeb is ready to serve the vital needs of high-speed broadband connectivity for those who have been left behind.
“Nation states can accelerate their universal service obligations, Telcos, their backhaul, and Enterprise/Governments can serve remote installations.”
UK business secretary Kwasi Kwarteng said the government’s equity stake “not only allows the UK to deploy low Earth orbit technology, but will put our country at the forefront of the small satellite market which is set to rapidly expand over the years ahead”.
He said OneWeb has now met its original funding objective and he believes the company “is fast becoming an asset to the British taxpayer”.