Hughes Network to invest $50 mn in UK govt, Bharti-led OneWeb consortium

Satellite networks and services company Hughes Network Systems on Monday announced $50 million investment in the UK government and Bharti Enterprises-led consortium which is acquiring bankrupt satellite operator OneWeb.

Hughes' India arm Hughes Communications India Ltd, (HCIL) and Bharti Airtel have also started the process of combining their satellite broadband operations in India, according to a joint statement issued by Hughes and Bharti Enterprises.

"Hughes has agreed in principle to invest $50 million in the consortium. Additionally, Hughes 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," the statement said.

Hughes has worked closely with the UK Government through its Hughes Europe division, which is headquartered outside of London, and sister company EchoStar Mobile Limited.
 

"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 UK through our business operations in both countries," Pradman Kaul, president, Hughes said in a statement.

The merger, which was announced in 2019, is pending regulatory approvals and is expected to bring greater scale, operational efficiencies and market reach to deliver solutions for enterprise and government networks.

"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," Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises said.