From Bankruptcy to a Pillar of European Space: The Future of Next-Generation Satellite Communications as Envisioned by OneWeb

Introduction

In this article, we will take a deep dive into OneWeb, which boasts the second-largest scale in the world of low Earth orbit (LEO) satellite constellations, following SpaceX's Starlink.

Why is this company, which filed for bankruptcy during the COVID-19 pandemic in 2020, now attracting attention as a cornerstone of European space strategy? From the latest funding rounds to development plans for next-generation satellites, we will organize and present the situation from the perspective of the space business.

What is OneWeb?

OneWeb is a satellite communications company that operates a constellation of over 600 LEO satellites orbiting approximately 1,200 km above the Earth. Founded in 2012 by American entrepreneur Greg Wyler, it is now a subsidiary of the French satellite communications giant Eutelsat.

While conventional geostationary orbit (GEO) satellites provide communications from a position approximately 36,000 km above the ground, OneWeb's satellites are nearly 30 times closer. The greatest feature of this low-orbit characteristic is the ability to significantly reduce data communication latency.

From Bankruptcy to Revival: A Dramatic Story of Recovery

One cannot discuss the history of OneWeb without mentioning its bankruptcy in March 2020.

At the time, the company was unable to secure additional investment from its primary investor, SoftBank Group, and combined with the turmoil in the financial markets caused by the global COVID-19 pandemic, it filed for Chapter 11 bankruptcy protection in the United States. This resulted in the layoff of approximately 85% of its workforce.

https://www.nasdaq.com/articles/british-satellite-firm-oneweb-emerges-from-bankruptcy-2020-11-20

However, a turning point arrived in July of that same year. A consortium formed by the UK government and the Indian telecommunications giant Bharti Global, each investing $500 million for a total of $1 billion, successfully acquired OneWeb.

https://spacenews.com/british-government-and-bharti-global-buy-oneweb-plan-1-billion-investment-to-revive-company/

Following this, the company resumed satellite launches and achieved global coverage in March 2023. In September of the same year, the merger with the French satellite communications giant Eutelsat was completed, giving birth to the world's first GEO-LEO integrated satellite operator, the Eutelsat Group.

Why the Large 1.5 Billion Euro Capital Increase Now?

In November 2025, Eutelsat is expected to complete a capital increase of approximately 1.5 billion euros (about 175 billion yen) to strengthen OneWeb's operations. Participants in this capital increase include the French government, the UK government, Bharti, and the shipping giant CMA CGM.

There are two main purposes for this capital increase.

First is the maintenance and renewal of the current OneWeb satellite constellation. The more than 650 satellites launched between 2020 and 2023 have a design life estimated to last until around 2027 to 2028. Securing funds for this generational transition has become an urgent priority.

Second is participation in the European Union's (EU) new satellite communications project, IRIS². This will be discussed later.

What is the difference from Starlink?

When it comes to LEO satellite constellations, SpaceX's Starlink, led by Elon Musk, has an overwhelming presence. Compared to Starlink, which operates over 7,000 satellites, OneWeb is significantly smaller in scale with approximately 600 satellites.

However, the business models of the two companies are clearly different.

Starlink focuses primarily on services for general consumers, rapidly expanding its user base with affordable pricing starting at around $99 per month. In contrast, OneWeb specializes in enterprise-grade services for businesses and government agencies.

OneWeb's strength lies in its quality assurance based on Service Level Agreements (SLAs) and a secure communication environment provided by dedicated lines. For customers who prioritize stability and reliability, such as telecommunications carriers, large corporations, and government agencies, these characteristics hold significant value.

Next-Generation Satellites and European Space Strategy

In December 2024, Eutelsat ordered 100 next-generation satellites from European aerospace giant Airbus to expand the OneWeb constellation. Delivery is scheduled to begin at the end of 2026.

These next-generation satellites are planned to incorporate integration features with 5G communications and interoperability with the EU's next-generation satellite constellation, 'IRIS²'.

IRIS² is a public-private partnership project aimed at securing Europe's 'digital sovereignty,' with plans to consist of approximately 290 satellites. Eutelsat, along with SES and Hispasat, formed the SpaceRISE consortium and has been tasked with operating this large-scale project. They aim to begin services around 2030.

The fact that OneWeb is taking the lead in designing the LEO segment for IRIS² indicates that the company has evolved from a mere private enterprise into a strategic entity that supports European space infrastructure.

Significance from the Perspective of Space Business

The case of OneWeb demonstrates the following important lessons in the space business.

First is the importance of government involvement. A company that once went bankrupt was revived through the support of both the British and French governments and has now become a core player in Europe's space strategy. In an era where space infrastructure is directly linked to national security, the importance of public-private partnerships is increasing.

Second is the effectiveness of a differentiation strategy. Against the overwhelming scale of Starlink, OneWeb has established a unique position by specializing in the enterprise market. It is a prime example showing that 'focus and selection' is the key to success even in the space business.

Conclusion

OneWeb has overcome the crisis of bankruptcy and is opening a new chapter as a cornerstone of European space communication infrastructure. With the introduction of next-generation satellites and participation in the IRIS² project, the foundation for the 2030s is being steadily solidified.

Against the giant that is Starlink, how will they secure market share through their differentiation strategy? Future developments are certainly worth watching.

Reference Articles

〇 Eutelsat approves nearly $1 billion capital boost (November 19, 2025)

〇 Eutelsat OneWeb - Wikipedia (Updated November 2025)

〇 British government and Bharti Global buy OneWeb, plan $1 billion investment to revive company (July 3, 2020)

〇 British satellite firm OneWeb emerges from bankruptcy (November 20, 2020)

https://www.nasdaq.com/articles/british-satellite-firm-oneweb-emerges-from-bankruptcy-2020-11-20

○ OneWeb vs Starlink Comparison | How do they stack up? (November 20, 2024)

○ Airbus awarded Eutelsat contract to build OneWeb low orbit constellation extension (December 11, 2024)

○ Europe signs contracts for IRIS² constellation (May 30, 2025)