London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

Britain Makes Risky Bet Reviving Bankrupt Satellite Firm OneWeb

Britain Makes Risky Bet Reviving Bankrupt Satellite Firm OneWeb

Satellite operator OneWeb emerged from bankruptcy on Friday after being rescued by the British government, signaling a more interventionist industrial strategy after Brexit.

The $1 billion takeover in partnership with India’s Bharti Global breaks with the U.K.’s traditional hostility to state involvement in private markets. The shift may help explain why Boris Johnson’s government is demanding more flexibility on state aid for companies in its talks with the European Union.

Here’s why Johnson is betting taxpayers’ money on an unproven business at the height of a pandemic, according to people involved in the process.

Space Leadership


OneWeb was established in 2012 to build a constellation of small satellites beaming internet connections to isolated places from low-earth orbit. It raised $3.4 billion from Softbank Group Corp., Airbus SE and other big names before collapsing when lead investors pulled their money at the height of the coronavirus pandemic. However, demand for remote broadband services is expanding with the growth of inflight Wi-Fi, the industrial internet, cloud networks and autonomous vehicles. Elon Musk is busy deploying his own satellite internet system, Starlink, and Amazon.com Inc.’s Jeff Bezos has similar plans.

The company pivoted away from consumer broadband to serving businesses and governments. The bankruptcy has lost OneWeb precious time, but it still has a potential strategic advantage over those rival constellations because its satellites orbit over the polar regions that are important for military actors, shipping, aviation and other companies active in remote areas.

“It’s brave, and not without risk, but it’s a good deal and will help position the U.K. as a global leader in communications for the 21st century,” said Stuart Martin, chief executive officer of Satellite Applications Catapult, a technology company that advised ministers to pursue the bid.

Money


The government pushed through the buyout in the face of concern among civil servants that the investment could sour. OneWeb may find it easier to turn a profit now that billions of dollars in initial spending have been written off in the bankruptcy. It already has 74 satellites in space and plans to resume launches next month and begin generating revenue next year. Bharti has 400 million customers and wants to use OneWeb to connect more remote users.

Jobs


Some advisers want to slap a British flag on the rocket that will blast the next batch of OneWeb satellites into orbit. There’s no immediate prospect of a manufacturing boost for the U.K. -- the initial planned constellation of 645 satellites is being made by a Florida-based joint venture co-owned by France and Germany-backed Airbus. However, London-based OneWeb does want to bring some manufacturing to Britain eventually, and an Airbus spokesman said the aerospace giant is speaking to officials about opportunities in the U.K. Former science minister David Willetts, who sits on the board of an Airbus subsidiary, lobbied in favor of the government buyout.

Influence


The deal underlines Britain’s space ambitions. Several proposals have been competing for government funds, ranging from a plan to launch rockets from Scotland to carving out a niche in space traffic management. OneWeb holds global priority rights to sought-after transmission frequencies and the rescue keeps the spectrum out of the hands of strategic rivals such as China. That could give Britain leverage with Washington and other allies. There’s also the potential boost to its military surveillance capability.

GPS


The OneWeb platform could be modified to give Britain a global positioning capability to replace its central role in the European Union’s Galileo system. Brexit has excluded the U.K. from Galileo’s most sensitive applications and the government has spent 18 months looking at how to build a clone of it from scratch. Since buying OneWeb, officials have reset that study work to explore a pooling of navigation services and technology. OneWeb might be used to augment the U.S. Global Positioning System, which is vulnerable to jamming and spoofing. While current OneWeb satellites can’t form a satellite navigation system by themselves, later ones could be customized to do so.

What’s Next?


A buyout that would usually take months to approve was decided in a matter of weeks, reflecting the willingness of Johnson and his advisers to tackle what they see as needless bureaucracy and make the state work faster.

Yet obstacles remain. In addition to the $1 billion committed by Britain and Bharti, OneWeb needs another $1 billion to fill out its initial constellation.

Several satellite companies conducted due diligence on OneWeb when it filed for bankruptcy, and Intelsat SA previously tried to merge with OneWeb in 2017. Rival executives say they are waiting for clearer signals of the reborn company’s plans before taking any serious interest.

On a call with staff Friday, Sunil Mittal, the billionaire founder of Bharti, said further funding offers worth hundreds of millions of dollars in equity and debt were being considered.

The OneWeb board is being confirmed, but will have three members from each co-owner. Bharti’s side is set to be represented by Mittal, his son Shravin Mittal, and Bharti vice chairman Akhil Gupta. On the U.K. side former deals banker Tom Cooper is expected to represent the U.K.’s investment body, U.K. Government Investments, alongside other directors still under consideration. A spokesman for OneWeb confirmed the provisional board members and that the board will also feature up to three independent directors.

Newsletter

Related Articles

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×