BackOneWeb set to offer services in India soon as Eutelsat-OneWeb merger finalised
Headquartered out of Paris, the merged entity will have Bharti Enterprises as its largest shareholder with a 21.2% share
PremiumMohali: Eutelsat Communications SA and OneWeb completed an all-share merger after getting approval from shareholders. This merger will create Eutelsat Group, with OneWeb now serving as a subsidiary and will operate commercially as Eutelsat OneWeb.
Headquartered out of Paris, the merged entity will have Bharti Enterprises as its largest shareholder with a 21.2% share.
The group has named Sunil Bharti Mittal as co-chair and Shravin Bharti Mittal as the director on the board of Eutelsat Group. Akhil Gupta will continue as a director on the board of OneWeb, now a 100% subsidiary of Eutelsat, with its centre of operations remaining in London.
“This exciting combination will be transformative for communities and businesses worldwide, utilising the unique blend of GEO and LEO technologies. This is a major milestone for us, our partners, and the customers we serve," Sunil Bharti Mittal said.
"Bharti is excited about providing services in India later this year and importantly, reaching other countries in the global south to provide broadband connectivity to those who are deprived of being a part of the digital revolution," Mittal added.
The India launch is contingent on the Indian government issuing spectrum for satellite-based communications. The government is yet to decide on whether it will give airwaves via auctions or via administrative allocation.
In a statement on Thursday, the entities said that the newly formed Eutelsat Group was strategically positioned to lead the space communications market since no other player had the combination of two types of satellites. Eutelsat’s geospatial earth orbit or GEO fleet of satellites will combine network density and high throughput with the low latency and ubiquity of OneWeb’s lower earth orbit or LEO constellation, to offer customers global, fully integrated connectivity services.
The combined entity is expected to grow at a double-digit revenue CAGR over the medium- to long-term, reaching €2bn in 2027. Adjusted EBITDA for the combined entity is expected to grow at a double-digit CAGR over the same period, outpacing revenue growth, the statement added.
Dominique D'Hinnin, chairman of the board of directors, “We will be moving fast to accelerate the growth of the combined business. With the support of strategic shareholders of both entities, we are confident of maximising financial performance and operational excellence, while capitalising on the high-return investment of next generation satellites."
OneWeb’s network is already active and will be globally operational by the end of 2023. The combined GEO-LEO service will open up new markets and applications for customers, including fixed connectivity (backhaul, corporate networks), government services and mobile connectivity (maritime and inflight). Broadcast and video services will remain integral to Eutelsat Group’s business where it will bring innovative services including new IP native video services, at the convergence of broadband and broadcast.
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