According to reports today, OneWeb, one of two companies presently building a constellation of satellites for providing worldwide internet access, is facing a serious cash crunch and might have to file for bankruptcy.
The main investor, Softbank, apparently is short of cash due to bad investments, worsened further by the stock market crash due to the Wuhan virus panic this week. Furthermore, the panic has caused Arianespace, which is launching many of OneWeb’s satellites, to suspend all launches from its French Guiana spaceport.
OneWeb has already launched 74 satellites, with a Soyuz launch of 34 more from Russia tomorrow. While fewer than the 360 that its main competitor SpaceX has launched of its Starlink constellation, OneWeb doesn’t need as many based on constellation’s design to become operational. After tomorrow’s launch, OneWeb will have launched about 18% needed, compared to SpaceX’s 24%.
If OneWeb goes out of business, it will do great harm to both Russia’s launch industry as well as Europe’s Arianespace, both of which have contracts for launching most of OneWeb’s satellites. In fact, for Russia, OneWeb is pretty much the only commercial customer they have. If they lose that it will be a serious financial blow.
Similarly, Arianespace’s next generation rocket, Ariane 6, has had problems garnering contracts. Losing the OneWeb launches will also hurt their bottom line.
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