Sunil Mittal is on a new mission — to invest in businesses that have a social impact. After investing in a venture for renewable energy earlier, Mittal on Thursday said that he has acquired a minority stake in a global satellite-based communication project called OneWeb.

Bharti will have representation on the Board of the company. OneWeb also announced the largest commercial rocket acquisition ever of more than 65 rockets from Arianespace and Virgin Galactic.

Arianespace will be providing 21 Soyuz rockets from three separate launch pads on a firm schedule, five Soyuz options and three Ariane six options. Virgin Galactic will be providing 39 separate launches.

At launch, the network will consist of 648 satellites which will ensure Internet coverage in all corners of the world. BusinessLine spoke with Mittal to know more about this project. Edited excerpts:

How did this consortium come about?

For the last six months, we have been in discussion with like minded people. Greg Wyler (founder of OneWeb) has been in the satellite communication business for over a decade. He has been working on creating a constellation of satellites that can work with normal phones, something that doesn’t require any new device, one that runs on low-cost satellites and with no shadow areas (in terms of coverage).

So, in this project, we have been able to achieve that through low-cost satellites.

There will be 648 satellites at launch, which is absolutely a record breaking number.

This is in low orbit which means every part of the globe will be covered. And the small box being developed by Qualcomm and Hughes will cost $100-300, which can create a base station of a few 100 metres. So you drop one of these boxes in a village and everything will be connected.

Is this an acceptance that wireless and wire line cannot achieve the objective of providing universal communication?

It is an acknowledgement of the fact that no terrestrial network can cover the last 15-20 per cent of the population. You can cover 70-80 population with traditional networks.

Prime Minister’s vision of Digital India is that every individual, howsoever poor, should get access to broadband and the only way to do that is through satellite access. Current satellite networks allow coverage but in a poor way, so poor that there are delays and latency. OneWeb, an innovative system backed by leading global corporations, will complement the efforts of Governments and telecom operators across the globe to take internet to the masses

Why have you made this investment through Bharti Enterprise and not under Airtel?

This is a global project and the Board felt that this is outside Airtel’s territory. Also, satellite projects are long gestation and have a risk profile. The view was that Airtel should continue with terrestrial networks and not get into satellites. So, we decided to do it in our personal capacity.

Will other telecom operators have access to this network?

Ans- Airtel will have a preferred relationship given that it’s a Bharti investment. But we are opening this to others. We will also engage with ISRO to show its prowess and bring some part of the 648 satellites.

Will this compete against initiatives like Internet.org?

This will be complimentary because Internet.org will get connectivity support from this. There are a whole lot of other things under this project, for example, Airbus will put this on every aircraft they build which means you will get connectivity while flying.

Coca-Cola has a huge programme of going to village and developing entrepreneurs. They will also distribute this product from a CSR point.

But for you this is business, not CSR?

This will be a business which has social impact. This will be a multi-billon dollar business. There is a total outlay of $3 billion so this has got to be profitable.

Are you looking at entering any other segments?

We have got our hands full so not looking at any other venture for now.

Overall, how do you read the sentiments in the telecom space, where on one hand, there is the objective to reach the last citizen, but on the other hand, telcos are under financial pressure.

The sector will find its own levels, consolidation will happen. We are awaiting spectrum trading and sharing guidelines.

All operators will have to make a viable business case, weaker operators will have difficulties and stronger ones will be able to manage.

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