Hughes joins UK & Bharti Enterprises to save OneWeb from bankruptcy

Recently, UK-based satellite communications company, OneWeb entered into an agreement with a consortium led by HMG (through the UK Secretary of State for Business, Energy, and Industrial Strategy) and Bharti Global Limited for the acquisition of the OneWeb business in connection with its court-supervised sale process.

Now, Hughes Network Systems LLC has announced its participation in the winning consortium, led by the U.K. Government and Bharti Enterprises that will acquire OneWeb out of bankruptcy.

Hughes has agreed in principle to invest $50 million in the consortium. Additionally, Hughes has said that the company will continue as a trusted technology and distribution partner to OneWeb, the Low Earth Orbit (LEO) satellite operator which had launched 74 satellites before filing for Chapter 11 protection in March.

Through its Hughes Europe division, which is headquartered outside of London, and sister company EchoStar Mobile Limited, Hughes says it has worked closely with the U.K. Government.

Furthermore, Hughes Communications India Ltd, (HCIL), a majority-owned subsidiary of Hughes, and Bharti Airtel Limited (“Airtel”), a leading Indian telecom provider affiliated with Bharti, are in the process of combining their satellite broadband operations in India. The merger, which was announced in 2019, is pending regulatory approvals.

“We are pleased to be part of this winning team, along with the British Government and Bharti,” said Pradman Kaul, President, Hughes. “Our continuing and strengthened involvement with OneWeb extends naturally from our position as a leading geostationary satellite operator and ground network innovator, along with a meaningful partnership with Bharti and longstanding relationship with the U.K. through our business operations in both countries.”

Kaul further said, “This global consortium brings the right players together to fulfill the promise of the OneWeb constellation in deploying low-latency services for communities, enterprises, governments, airplanes, and ships – complementing geostationary connectivity and ushering in the new era of multi-transport services that will serve growing bandwidth demand around the world. We look forward to doing our part in developing this groundbreaking technology and bringing those services to market.”

Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises said, “We are delighted to welcome Hughes to the consortium. The investment by Hughes underlines OneWeb’s exciting commercial prospects, reflected in the ongoing discussions with some of the world’s leading strategic and financial investors.”

Consummation of the consortium is contingent upon the execution and effectiveness of definitive agreements. Confirmation of OneWeb’s reorganization is contingent on certain conditions established by the Bankruptcy Court.