Eutelsat and OneWeb have announced a merger, which means that the two companies are now in a stronger position to make a play for satellite internet services. 

Compared to many buyouts that happen every year, this one is important, especially for Indians, given that it may just herald the arrival of satellite internet in the country. While OneWeb’s stated goal is to provide access to internet globally through the satellites stationed in low earth orbit, various companies have had to come together to get the company off the ground. 

Also Read: Eutelsat and OneWeb to merge, want to rival SpaceX in satellite internet

In March 2020, the company filed for Chapter 11 bankruptcy after the pandemic disrupted the startups funding plans. It went on to lay off 85% of its 500 employees. Four months later in July 2020, the Indian company Bharti Global and the government of the United Kingdom bought the company. However, Bharti Global holds the largest stake in the company, 38.6% of the shares bought at a $500 million investment. 

Other shareholders include Japanese multi-conglomerate Softbank, the U.S.-based Hughes Network, the British government and South Korean conglomerate Hanwha. However, since the deal has gone through, regulators have been concerned about how different companies would cooperate with the British government, which still maintains special voting rights regarding headquarters and sales to clients it thinks are a threat to security, Reuters reported. 

For Sunil Bharti Mittal, the OneWeb merger might just help his telecom companies back home in India. Bharti Airtel has been doing well as India’s second largest mobile operator and this move might help the company bring the first of its kind low latency satellite internet to the country. 

Last year, SpaceX had begun taking orders for its Starlink service and had amassed 5000 preorders. However, the India’s Ministry of Communications ordered Elon Musk’s company to cease taking any booking for the service and ordered it to refund all the preorders. 

The deal, slated to complete in 2023 will ultimately help consumers as competition in the ‘satellite internet’ space increases.