More Industry InsightsOneWeb, the satellite internet connectivity provider, declares bankruptcy

March 31, 2020by myles0

The American company OneWeb, which specializes in providing Internet by satellite, has declared bankruptcy. In a press release published on March 27, 2020, the company said that it was forced to do so because it could not find sufficient funding to continue its investments.

However, the agreement for new funding was almost signed. But the appearance of the coronavirus and the financial impact that the disease had on the market turned everything upside down. 

OneWeb, which launched the Rwandan satellite “Icyerekezo” in February 2019 and which wanted to provide telecom services in several African countries, notably Angola and even Nigeria, where the company had already obtained an operating license, is now looking for a buyer, who will be able to continue his ambitious project of a constellation of nearly 600 telecoms satellites in low orbit around the earth to provide Internet to populations living in areas not covered. 

In March 2019, OneWeb successfully raised $ 1.25 billion from SoftBank Group Corp., Grupo Salinas, Qualcomm Technologies Inc., and the government of Rwanda. This sum, which brought the funds raised by the company to $ 3.4 billion, was to be used to accelerate the development of its global satellite communication network by 2021.

To date, OneWeb has 74 satellites in low Earth orbit. The company which will carry out a reorganization, in particular a reduction in staff, says to continue its activities while waiting for a buyer.

Source: Agence Ecofin

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