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Evicted from Galileo after Brexit, London buys the OneWeb constellation to have a more precise GPS

The post-Brexit UK does not intend to remain isolated on its islands, but intends to maintain its rank in space. The British government has announced a stake that has not gone unnoticed in the world of the space industry: it buys 45% of OneWeb, an American company which develops a network of satellites in low orbit, while Bharti Global, a group Indian which controls, in particular, the third supplier of mobile telephony in the world, also takes 45%. The remaining 10% remains in the hands of current OneWeb creditors.

The transaction which amounts to more than 1 billion dollars (900 million euros), the United Kingdom investing more than 500 million, should be completed by the end of the year. Before that, it must still be approved by the American legal authorities, OneWeb being under the protection of chapter 11 of the American bankruptcy law, since March, victim of the coronavirus crisis.

A way to compensate for the loss of access to GPS

OneWeb is a company that is developing a network of satellites in low orbit (1,200 kilometers from Earth), in order to serve as a broadband Internet provider all over the world, particularly in remote areas. The company already has 74 satellites in orbit. Its main competitor is Starlink, a company led by Elon Musk, which already has some 300 satellites in orbit and aims to launch up to 42,000.

In addition to broadband internet, Oneweb’s network, even if it is not made for GPS, should allow London to find ways to compensate for the loss of access to the European Galileo navigation system after Brexit .

With its participation in society, the British government announces that it aims to make the United Kingdom a global player in the space industry. “The transaction will help make the UK a pioneer in the research, development, manufacturing and use of new satellite technologies“said a spokesman for Downing Street.

The British press sees in the interest of the United Kingdom for Oneweb the hand of Dominic Cummings, adviser to Prime Minister Boris Johnson and fascinated for a long time by the space industry.

National Space Council

This offer on Oneweb follows the creation of the National Space Council in the United Kingdom, chaired by the Minister of Finance Rishi Sunak and supposed to look after the interests of the country in terms of national security.

The United Kingdom will invest public money in this project, when it spends without counting to cushion the economic shock of the pandemic, but reluctant to inject funds into companies to ensure their survival.

Competition in the satellite constellations market

In a press release, Oneweb estimated that this recovery will allow it to leave the bankruptcy regime with “solid foundations”. “Oneweb to contribute to British government’s ambition to join leading space nations“, according to the company.

The United Kingdom intends to establish itself in the market for satellite constellations which arouse many appetites.

European Commissioner for the Internal Market Thierry Breton explained this week in an interview with Le Figaro that the European Union should have its own constellation to provide broadband internet.

However, Europe has not yet positioned itself to take over Oneweb, judging that the operator did not meet its ambitions.

Its recovery will be good news for Arianespace, which still had to launch 18 times to deploy these satellites, notably on the occasion of the inaugural flight of the future Ariane 6 rocket.

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