Page 49 - SAMENA Trends - April-May 2021

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

that will provide significant enhancements in terms of capacity, ratings. Eutelsat’s policy of a stable to progressive dividend
flexibility and economics. It anticipates annual revenues of circa is also reiterated. Commenting on the agreement, Rodolphe
$1 billion within three to five years following the full deployment Belmer, Eutelsat’s Chief Executive Officer said: “We are excited
of the constellation, with a partnership approach and profitable to become a shareholder and partner in OneWeb in the run up
wholesale business model. Eutelsat’s investment leaves OneWeb to its commercial launch and to participate in the substantial
almost fully funded and the company is well advanced in terms opportunity represented by the non-geostationary segment within
of securing its remaining funding needs this year. Eutelsat’s our industry. We are confident in OneWeb’s right to win thanks
investment will come with similar governance rights to the UK to its earliness to market, priority spectrum rights and evolving,
Government and Bharti, including board representation, where scalable technology. We look forward to working alongside the
its position and expertise as one of the world’s leading satellite UK Government, Bharti and the other shareholders to open new
operators will help to drive the success of the new constellation. opportunities and market access to ensure OneWeb maximizes
In a context where LEO features will enable the extension of the its potential. OneWeb will become our main growth engine outside
addressable market for satellite operators well beyond their our broadcast and broadband applications, as we continue to
current reach, the complementarity of Eutelsat’s and OneWeb’s maximize cash-flow extraction from our highly profitable heritage
resources and assets is expected to optimize both companies' business and grow our fixed broadband vertical leveraging our
commercial potential thanks to Eutelsat’s strong commercial geostationary assets.” Business Secretary Kwasi Kwarteng said:
and institutional relationships, recognized technical expertise “Today’s investment is another giant leap forward for OneWeb in
and global geostationary fleet, and OneWeb’s ability to address realising its ambition to provide global broadband connectivity
the multiple applications requiring low latency and ubiquity. The around the globe. Eutelsat brings over forty years of experience
investment will be 100% cash financed through Eutelsat’s liquidity in the global satellite industry and this exciting new partnership
position of €1.9bn as at end-March 2021[1] and the $507m US puts OneWeb on a strong commercial footing, and the UK at the
C-Band auction proceeds, and will be accounted for under the forefront of the latest developments in low Earth orbit technology.
equity method. It is consistent with Eutelsat’s financial hurdle This comes alongside yesterday’s exciting news that a further
rates and does not alter its financial objectives, which are fully 36 satellites were launched into space and demonstrates the
confirmed, including the medium-term net debt / EBITDA target momentum behind OneWeb and the promising efforts to provide
of c.3x and a commitment to solicited Investment Grade credit connectivity to some of the world’s most remote places.” OneWeb
Executive Chairman, Sunil Bharti Mittal, said: “We are delighted
to welcome Eutelsat into OneWeb family. As an open multi-
national business, we are committed to serving the global needs
of Governments, Businesses and Communities across the Globe.
Together we are stronger, benefiting from the entrepreneurial
energy of Bharti, extensive global outreach of UK and long-term
expertise of the satellite industry at Eutelsat. OneWeb, with its
innovatory approach, is poised to take a leading position in LEO
broadband connectivity”. Neil Masterson, Chief Executive Officer
of OneWeb added: “As OneWeb accelerates the deployment of its
fleet and engages in discussions with potential customers, we
welcome the powerful support of Eutelsat during the next exciting
phase of our journey together, benefitting both companies equally.
Eutelsat is a great partner for OneWeb thanks to our high level
of complementarity in terms of technology, assets, addressable
markets, geographic reach and institutional relationships”.

Facebook Lays Fiber Across the Entire State of
Indiana

Facebook is laying fiber across the width the I-70 corridor from the Indiana/Ohio Hancock, Henry, and Wayne Counties
of Indiana to connect a couple of its own border to downtown Indianapolis. Phase to downtown Indianapolis will connect
data centers, and it will lease excess One was 100% funded by Facebook via Facebook’s data centers in Iowa and
capacity on the fiber to telcos or other its wholly-owned subsidiary Middle Mile Nebraska to its East Coast cluster in Ohio,
providers that are interested. Facebook Infrastructure. The 77 miles of fiber that Virginia and North Carolina. The social
has completed the first phase the build, runs from Interstate Highway 70 at the media company is also planning a second
laying over 77 miles of fiber to connect Indiana/Ohio border through Marion, phase with its partner Zayo. Phase Two

49 APRIL-MAY 2021