LONDON, UK, March 27, 2020 – OneWeb (“OneWeb,” “the Company”), the global communications company with a mission to bring connectivity to everyone everywhere, announced today that the Company and certain of its controlled affiliates have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The Company intends to use these proceedings to pursue a sale of its business in order to maximize the value of the company.
To date, the Company has successfully launched 74 satellites as part of its constellation, secured valuable global spectrum, begun development on a range of user terminals for a variety of customer markets, has half of its 44 ground stations completed or in development, and performed successful demonstrations of its system with broadband speeds in excess of 400 Mbps and latency of 32 ms. In addition, OneWeb’s commercial team has seen significant early global demand for OneWeb’s high-speed, low-latency connectivity services from governments and leaders in the automotive, maritime, enterprise, and aviation industries.
Since the beginning of the year, OneWeb had been engaged in advanced negotiations regarding investment that would fully fund the Company through its deployment and commercial launch. While the Company was close to obtaining financing, the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19. (OneWeb)
The coronavirus claims another victim. In this announcement, we see what One Web was going to offer and who they saw as their customers…. high speed internet for governments and corporations. They were aiming at Iridium’s market. Musk is aiming at both and the individual consumer market. I think that if the coronavirus didn’t get OneWeb, Musk would have gotten them sooner or later. It’s a shame. They just launched 34 more satellites for their network on 21 March.
Southfront had an interesting, albeit cynical and conspiratorial, take on OneWeb’s failure. Musk can beat competitors because they are fully integrated into the US national security system. Well Musk does have a diversified and successful business that includes government business. He has lots of money to invest in all his grand endeavors. But I wouldn’t call him a cog in the national security machine. If that theory isn’t enough, Southfront thinks OneWeb was a competitor to Huawei’s 5G network and, therefore, became a target of the CCP who released the coronavirus to bankrupt OneWeb. Break out the tinfoil, me buckos!