Satellite telecom firms OneWeb announced to merge with IntelSat. This tie-up involves a capital injection of $1.7 bn in cash from Japanese group, SoftBank. OneWeb and IntelSat Merges to Advance “Internet in Sky” Plan.
OneWeb and Intelsat Merges to Advance “Internet in Sky” Plan
OneWeb said in a joint statement,
The deal aims “to create a financially stronger company with the flexibility to aggressively pursue new growth opportunities. Resulting from the explosion in demand for broadband connectivity for people and devices everywhere,”
The deal will boost up OneWeb’s plans for a network of low-Earth orbit satellites to deliver high-speed internet to remote areas of the globe.
“At the centre of both our companies is a shared mission to connect the globe,”
said Intelsat chief executive Stephen Spengler. Moreover, He will be CEO of the combined company.
“The combination will create an industry leader unique in its ability to provide affordable broadband anywhere in the world”.
SoftBank, in December announced to invest $1 billion in OneWeb. Now the company agreed to add $1.7 billion to the combined company. Moreover, it will give a 39.9 per cent voting stake plus additional non-voting shares.
“With SoftBank’s support we will build the world’s first truly global broadband company, accelerating our mission of bridging the digital divide by connecting the four billion people without access today,”
said OneWeb founder Greg Wyler, who will be executive chairman of the new company.
OneWeb also intends to launch 684 low-orbit satellites, to cover the entire planet. The company is also planning to deliver internet to backward areas where conventional land systems are not economical.
However, by using a network of satellites closer to earth will deliver a faster response. Moreover, it is similar to what consumers get with high-speed wireless connections.