Internet OneWeb satellites can not fly - the company is preparing for bankruptcy

Telecommunications company OneWeb aims to provide hundreds of millions of potential users of broadband access in places where it is not. For this purpose it was planned to create the same name with the name of the company satellite telecommunications system OneWeb.

But the company due to pressure from competitors and a deteriorating financial situation considering filing for bankruptcy, according to Bloomberg.

the Company is considering going to court, even if it will continue to consider possible extrajudicial alternatives, said Agency sources, who asked to remain anonymous.

OneWeb will be one of the first companies supported by Japanese holding company SoftBank, which will submit the application on bankruptcy. SoftBank declined to comment.

the London company OneWeb produces low-orbit satellites that will provide broadband access to the network even in very remote parts of the planet. The company was founded in 2012 and during its existence has raised approximately $3.3 billion investment from several large companies, including SoftBank, Airbus SE and Qualcomm Inc.

the investors of the project OneWeb are such well-known companies like Bharti Enterprises, Hughes Network Systems, a subsidiary of EchoStar Corporation, Intelsat, The Coca-Cola Company, Totalplay, Grupo Salinas Company, Virgin Group, and others.

the First phase of commissioning meant the formation of initial groups and the activation of the first demo versions of the clients ‘ terminals to the end of 2020, and the beginning of commercial exploitation for Maritime, aviation, government and enterprise areas is scheduled for 2021.

To implement this idea the company needs up to $3 billion of private capital for the introduction of the system into operation. After running the entire network system can provide data transmission speed of 10 terabits per second for SELing areas around the world using Wi-Fi technology, LTE (4G), 3G and 2G to connect mobile phones, tablets and laptops through a small inexpensive user terminals to the spacecraft satellite network OneWeb.

OneWeb is facing serious competition from Amazon, but the main enemy of the company SpaceX, founded by Elon Musk. From SpaceX is a private project of satellite Internet Starlink.

Starlink works to this summer to offer customers Internet services through their satellites. In the beginning of the year group system Starlink was increased to 180 microsatellites. In 2020, the company will launch 60 satellites every two weeks. With them, Musk hopes to provide cheap and fast Internet access in any corner of the planet. The network can start this year when the group will grow to several hundreds of satellites.

the Starlink System needs to provide access to the Internet users on the planet due to the deployment in earth orbit of a large number of small machines (up to 500 kg). It is assumed that the communication system is everywhere, including remote and sparsely populated areas, will provide broadband access to the Internet at speeds of 1 Gigabit per second, which corresponds to the 5G standard. SpaceX has estimated the cost of the project at $10 billion, but experts believe this figure too low.

Elon Musk reported that to ensure a minimum coverage you will need at least six launches with 60 satellites, i.e. 360 machines and for the average of 12 runs, which will allow to create a group of devices 720.

Musk told how it will look in the device with which people will have access to the Internet of the future. In his Twitter he wrote that the terminal Starlink similar to “slim round UFO on a stick.” According to the entrepreneur, the optimal tilt angle, the tool will pick up fromam. The user will only have to turn on the terminal in the socket and guide to heaven. To switch between satellites the device will also be himself. In 2015, Musk said that SpaceX terminals before they are called Starlink, will cost from $100 to $300 each. However, the cheapest the manufacturer sells such a device today at a price of about $1 thousand, according to analyst Tim Farrar. As the Starlink satellites, SpaceX develops and manufactures terminals that, according to President and chief operating officer Gwynn Shotwell, it was not a trivial task.

In October 2019 Musk said that he tried the satellite Internet connection Starlink, posting an entry on Twitter. “Wow, it worked!” — he wrote. SpaceX plans to turn the Starlink division into an independent company and to undertake an initial public offering of its shares (IPO) in the next few years.

In the sphere of satellite Internet work for a long time companies like Inmarsat, Intelsat SA and Eutelsat Communications SA. And although the technology is in its early stages of development, business is subject not only to high initial costs and uncertainty of the regulatory framework.

according to Bloomberg, on this front, SoftBank has intensified lobbying activities in Washington, including in support of measures that would OneWeb to provide Internet access from a greater number of its satellites.