Huges agrees to invest $50 mn in Bharti Airtel and UK consortium to take over OneWeb

OneWeb - the British firm went bankrupt while trying to build a constellation of satellites to deliver wireless broadband globally and had to bear the hammer of bid. The bid was won by India’s Bharti Enterprises and the UK government. US-based satellite broadband player, Hughes Network Systems, will invest $50 million to join a consortium.

Hughes’ $50 million in-principle investment is likely to translate into a tiny minority stake of around 5% in OneWeb, say people aware of the matter, though actual stake size is still under discussion.

“Hughes’ investment underlines OneWeb’s exciting commercial prospects, reflected in ongoing discussions with some of the world’s leading strategic and financial investors,” Bharti Enterprises chairman Sunil Bharti Mittal said in a media statement Monday.

Hughes, which was amongst the original clutch of investors in OneWeb, before the latter collapsed into bankruptcy in March, plans to continue its association as a technology and distribution partner.

Hughes President Pradman Kaul said the company’s strengthened involvement with OneWeb stems from its position as “a leading geo-stationary satellite operator and ground network innovator," along with its partnership with Bharti and its longstanding relationship with the UK through its business operations in both countries.

Bharti and the UK government are each likely to reportedly hold 45% each in OneWeb, with Hughes and other existing investors retaining the balance 10%.

Hughes Communications India (HCIL), the majority-owned Indian arm of Hughes Network Systems, and Bharti Airtel are also in the process of combining their satellite broadband operations in India. The merger, announced last year, is awaiting regulatory approvals.