The British government is set to invest up to €500 million in besieged satellite company OneWeb as it seeks to create a global satellite navigation system after Brexit. British companies have been excluded from the European Galileo project, which is building a European alternative to the US global positioning system (GPS) and the Russian GLONASS. However, developing a British business from scratch would cost billions of pounds. The UK government is now set to fund a private sector consortium for OneWeb in the belief that OneWeb's low-orbit satellites could be used to power an innovative navigation system.
UK OneWeb
The original intention of OneWeb was to create a network of satellites that could provide connectivity to connect parts of the Earth where it is impossible or unprofitable to use traditional technologies such as fiber or cellular. The company hoped to gain a first-mover advantage and believed that the combination of its harmonized spectrum and LEO (low Earth orbit) constellation design would give it technological supremacy. The company has raised billions of cash from major investors, with a funding round last year that raised €1.250 billion from Japanese giant Softbank, Qualcomm and the Rwandan government. To date, it has launched 74 satellites and built 44 ground stations and expected to launch 650 in total for commercial launch in 2021. OneWeb is based in the UK and the company is regulated by Ofcom, but its management and manufacturing are largely American part. In March, the company filed for Chapter 11 bankruptcy in the United States, claiming that the coronavirus crisis had thwarted attempts to raise additional funds for a commercial launch. She laid off employees and was looking for a buyer. Bids are due later this week and amid interest from China and France, the FT says government adviser Dominic Cumming has convinced Prime Minister Boris Johnson to contribute funds to a private sector consortium that could give the taxpayer a 20% stake in OneWeb. Via FT