NEOM Tech, OneWeb sign $200m JV for Satellite Network

OneWeb, on Wednesday, has partnered with NEOM Tech & Digital Holding Company, a subsidiary of Saudi's NEOM megacity project, to create a JV and deliver satellite connectivity to Saudi Arabia and the Middle East.

Another Strategic Move for OneWeb

The JV, worth $200 million, will see OneWeb getting deployed for delivering connectivity to the megacity project; it will provide connectivity to enable NEOM’s ecosystem of cognitive technologies. The agreement also includes a long-term strategic partnership regarding research and development of future connectivity systems.

The companies have said that they will complete the ground infrastructure by 2022 for OneWeb's deployment. The JV formed will get the rights to distribute the services for 7 years from the start. OneWeb has set 2023 as the launch year for the services in Saudi.

The partnership supports NEOM Tech & Digital Hold Co.’s international connectivity strategy. This strategy, aimed at connecting the megacity project, will use connections to sub-sea and terrestrial communications cables, 5G and fiber, and now LEO satellites. This will allow it to secure access to tens of terabytes of scalable capacity for both urban and rural businesses and communities in NEOM by 2030.

A Tale of Three Countries

Not only this, the JV will have geopolitical implication; it will further strengthens ties between Saudi Arabia and the UK Government, OneWeb said in a release. The same was reflected in the attendees list of the event; Khalid Al Falih, Minister of Investment, Saudi Arabia; Abdullah Alswaha, Minister for Communications & IT, Saudi Arabia and Gerry Grimstone, Minister for Investment at Department for International Trade and Department for Business Energy and Industrial Strategy, UK were all at the event.

India also gets a stake in the venture; Sunil Mittal is at the helm at both OneWeb and Bharti Enterprises.

At the event, Joseph Bradley, CEO, NEOM Tech, said, "we aim to connect 100% of NEOM’s territory. Yet, we must also preserve the natural environment. This is what drives us to innovate with partners such as OneWeb to create sustainable ways to accelerate human progress".

Sunil Mittal, CEO, Bharti Enterprises, said, "this agreement will help realize our joint vision of boosting connectivity in Saudi Arabia, Middle-East and East Africa. It exemplifies the model through which OneWeb’s services will reach unconnected or poorly connected regions – through cooperation with international governments and local partners.”

Lastly, Neil Masterson, CEO, OneWeb, said, "this agreement represents OneWeb’s global vision to help bridge the digital divide through our innovative LEO satellite network. By working with NEOM Tech & Digital Hold Co., OneWeb will support the ambitions of NEOM, connecting businesses and communities and supporting the resilience of connectivity systems across the wider region.”