With the formation of a $200 Million JV between NEOM Tech & Digital Holding Company and OneWeb, NEOM mega-city, Saudi-Arabia as a whole as well as the wider Middle-East and neighboring East-African countries would be brought under high-speed satellite connectivity
In a new development, NEOM Tech & Digital Holding Company, and OneWeb, the UK-headquartered leading communications network services firm, have signed a $200 million joint venture (JV) agreement to bring high-speed satellite connectivity to the NEOM city, Saudi-Arabia as a whole as well as the wider Middle-East and neighboring East-African countries. Spread in an area of 26,500 square km, NEOM is Saudi-Arabia’s $500 Billion flagship mega-city project. Located in Saudi Arabia’s North-Western province of Tabuk, and stretching deep and wide along the coast line of the Red Sea, NEOM is going to be the world’s largest planned and an immaculately green city – making use of the renewable energy as well as technologies such as AI and robotics. NEOM is labeled as the world’s first true ‘congnitive city’ that goes beyond what any smart city means.
One of the interesting aspects of this JV is that OneWeb has a strong Indian connection as its Executive Chairman is Sunil Bharti Mittal. His parent company, Bharti Enterprises, holds the majority 38.6 percent stake in OneWeb. The other stake holders include the UK Government (19.3 percent); SoftBank (19.3 percent); Eutelsat (19.3 percent); and Hughes Network Systems (2.6 percent).
Moreover, the partnership will see the deployment of OneWeb’s Low Earth Orbit (LEO) satellite constellation, which will not only provide the rapid and reliable connectivity to enable NEOM’s ecosystem of cognitive technologies, but also transform businesses and rural communities in the region where access to fiber-like internet was previously unimaginable. The agreement also includes a long-term strategic partnership regarding research and development of future connectivity systems.
The partnership supports NEOM Tech & Digital Holding Company’s international connectivity strategy, which will use connections to sub-sea and terrestrial communications cables, the construction of 5G and fibre networks, and now LEO satellites to secure access to tens of terabytes of scalable capacity for both urban and rural businesses and communities in NEOM by 2030.
Joseph Bradley, CEO, NEOM Tech & Digital Holding Company and Neil Masterson, CEO, OneWeb, formalized the agreement at a signing ceremony at the Kingdom’s flagship Future Investment Initiative event. Also in attendance were His Excellency Khalid Al Falih, Minister of Investment, Saudi Arabia; His Excellency Abdullah Alswaha, Minister for Communications & Information Technology, Saudi Arabia; Lord Gerry Grimstone, Minister for Investment at Department for International Trade and Department for Business Energy and Industrial Strategy, UK; Nadhmi Al Nasr, CEO, NEOM; and Sunil Bharti Mittal, Executive Chairman, OneWeb.
NEOM Tech & Digital Holding Company and OneWeb, the second largest LEO operator with 358 satellites and the only licensed operator in Saudi Arabia, expect to complete ground infrastructure in 2022. NEOM Tech & Digital Holding Company and the new JV entity will have exclusive rights to distribute OneWeb services in its target regions for seven years from the initiation of the LEO satellite network, which is expected to commence in 2023.
“It is a great pleasure to witness the signing of the joint venture between NEOM and OneWeb, which is a testament to Saudi Arabia’s promising future in the space technology sectors. Today’s agreement will contribute to economic growth and accelerate digital and communications knowledge transfer to the Kingdom through the transformative NEOM vision. As the Ministry of Investment works to implement the National Investment Strategy recently launched by HRH the Crown Prince, we will continue to provide support to this and other differentiated initiatives and projects and look forward to seeing it come to fruition in the near future”, says His Excellency Falih.
His Excellency Falih says, “This ground-breaking joint venture shows the power of collaboration between nations, and with the private sector. By working together, we will bring digital connectivity to a region of more than a billion people, opening access to life-changing opportunities in education, healthcare and the job market. We are one step closer to ensuring that no child is left on the wrong side of the digital divide.”
UK Investment Minister Gerry Grimstone views, “This joint venture brings together two emerging space and digital technology champions to deliver connectivity for the Middle East. It demonstrates that the UK Government’s investment in OneWeb continues to be a catalyst for international collaboration, while securing jobs at home and driving investment into the UK space sector.”
“We aim to connect 100 percent of NEOM’s territory yet we must also preserve the natural environment. This is what drives us to innovate with partners such as OneWeb to create sustainable ways to accelerate human progress. The partnership has the potential to transform the way governments, businesses and communities connect to the internet”, says Bradley.
Mittal of OneWeb, opines, “This agreement will help realize our joint vision of boosting connectivity in Saudi Arabia, Middle-East and East-Africa. It exemplifies the model through which OneWeb’s services will reach unconnected or poorly connected regions – through cooperation with international governments and local partners.”
Masterson of OneWeb, says, “This agreement represents OneWeb’s global vision to help bridge the digital divide through our innovative LEO satellite network. By working with NEOM Tech & Digital Holding Company, OneWeb will support the ambitions of NEOM, connecting businesses and communities and supporting the resilience of connectivity systems across the wider region.”
Qaisar
