{"id":9922,"date":"2020-05-12T17:05:03","date_gmt":"2020-05-12T17:05:03","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2020\/05\/12\/a-bankrupt-oneweb-could-get-some-help-from-the-defense-department\/"},"modified":"2026-08-07T21:26:04","modified_gmt":"2026-08-07T21:26:04","slug":"a-bankrupt-oneweb-could-get-some-help-from-the-defense-department","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/c2-comms\/satellites\/2020\/05\/12\/a-bankrupt-oneweb-could-get-some-help-from-the-defense-department\/","title":{"rendered":"A bankrupt OneWeb and other troubled space startups could get some help from the Defense Department"},"content":{"rendered":"\n

WASHINGTON \u2014 As the U.S. Space Force looks to expand the military\u2019s communications capabilities in the far north<\/a>, it is facing a problem. The global pandemic has hit space startups exponentially hard<\/a>, and OneWeb, one of the companies aiming to provide internet to Arctic locations, filed for bankruptcy in March.<\/p>\n\n\n\n

The Defense Department is considering taking action to help fortify OneWeb and other vulnerable space startups, said Lt. Gen. David Thompson, vice commander of Headquarters Space Force.<\/p>\n\n\n\n

\u201cI will say with respect to OneWeb specifically and others, we continue to work,\u201d he said during a May 12 event held by the Mitchell Institute for Aerospace Studies. \u201cWe work with the White House and we\u2019ll be working with Congress, not just focused on OneWeb but all of the commercial space companies that face bankruptcy and face those concerns.\u201d<\/p>\n\n\n\n

Thompson did not lay out options under consideration by the Pentagon to aid OneWeb, but he did say the department\u2019s Space Acquisition Council devised a list of proposed investments for space companies that need rapid, aggressive action. That capital is needed to ensure emerging space technologies remain available to the U.S. military but also so \u201cthat potential adversaries don\u2019t have the opportunity to acquire those capabilities,\u201d he said.<\/p>\n\n\n\n

OneWeb is pursuing a sale of the business as part of bankruptcy proceedings, saying that \u201cwhile the company was close to obtaining financing\u201d through its own negotiations with investors, \u201cthe process did not progress because of the financial impact and market turbulence related to the spread of COVID-19.\u201d<\/p>\n\n\n\n

So far, the company has launched 74 satellites, secured global spectrum and has half of its 44 ground terminals in development or complete \u2014 making it attractive to potential bidders such as Amazon or European satellite company Eutelsat.<\/p>\n\n\n\n

However, two unnamed Chinese firms have also submitted proposals, according to The Telegraph<\/a>. That could raise major concerns among Defense Department officials, who have warned that adversary nations \u2014 particularly China \u2014 could use the financial instability caused by the coronavirus pandemic as an opportunity to increase investments in technology companies with national security applications.<\/p>\n\n\n\n

\u201cThe [defense-industrial base] is vulnerable to adversarial capital, so we need to ensure that companies can stay in business without losing their technology,\u201d Ellen Lord, the Pentagon\u2019s top acquisition official, said in March.<\/p>\n\n\n\n

If OneWeb is sold to a Chinese owner, the Defense Department could lose access to one of the few suppliers of commercial broadband internet servicing the Arctic.<\/p>\n\n\n\n

While the Space Force operates two Enhanced Polar System satellites to provide secure, jam-resistant military communications, few commercial satellite providers extend their coverage to the far north. As a result, troops have limited communication options in the Arctic, and the Pentagon has long been concerned about a lack of resiliency.<\/p>\n\n\n\n

Companies like OneWeb and SpaceX, which intend to create a network of hundreds of small satellites in low-Earth orbit, could change that paradigm by providing low-cost commercial internet services that span the globe.<\/p>\n\n\n\n

In September, OneWeb announced it would begin to provide low-latency broadband service to the Arctic by the end of 2020, with full, 24-hour coverage expected in 2021. For its part, SpaceX stated that its Starlink constellation would begin providing broadband service this year. The military has expressed interest in working with both companies.<\/p>\n\n\n\n

U.S. Northern Command sought $130 million to explore OneWeb\u2019s and SpaceX\u2019s capabilities<\/a> in order to provide reliable and potentially cost-effective internet in the Arctic, listing the effort on top of the unfunded priority list sent to Congress this spring.<\/p>\n\n\n\n

Nathan Strout in Washington contributed to this story.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

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