news/AMZN/2023.02.28/Telecom operator Veon strikes deal on satellite service with OneWeb.txt

BARCELONA, Feb 28 (Reuters) - Telecom operator Veon
, which operates Ukraine’s largest mobile network, has
struck a deal with British company OneWeb to integrate the
firm’s satellite services with its terrestrial network, in one
of the first cross-sector deals of its kind, according to
sources familiar with the matter.
Satellites can help secure telecom connections when normal
networks are disrupted by wars or natural disasters. Three
sources familiar with the matter said the partnership could see
the companies launch connectivity services in parts of
Kazakhstan, Pakistan and Ukraine.The deal is expected to be announced as early as Wednesday.
Veon and OneWeb declined to comment.The Ukrainian government did not immediately respond to a
request for comment.Veon’s Ukrainian unit, Kyivstar, already works with Elon
Musk’s Starlink to bolster coverage across the war-ravaged
country, sources said.Veon and Starlink are negotiating fees for the coming year,
after governments and other entities paid for the service
through spring 2023.Each OneWeb terminal provides connectivity to hundreds of
people and can run on solar power. OneWeb has around 550
low-orbit satellites and plans to launch dozens more with the
help of Musk-owned SpaceX.SpaceX has shipped truckloads of Starlink terminals to
Ukraine, and U.S. government earlier this month said it had
conversations with Musk about the use of Starlink satellite
internet in Ukraine.Veon plans to use OneWeb’s services for emergency purposes,
offsetting damage to networks on the ground and extending
coverage to rural areas, sources said.
SpaceX activated Starlink over Ukraine following the Russian
invasion last year, providing internet access to millions of
civilians and military personnel.In 2020, the British government rescued OneWeb from
bankruptcy with a 500 million pound ($605 million) investment.
French rival Eutelsat is in the process of acquiring
OneWeb, with the British government retaining a minority stake.The companies want to merge to build a constellation of
low-orbit satellites to challenge Starlink and Amazon's
Project Kuiper.($1 = 0.8263 pounds)
(Reporting by Martin Coulter and Supantha Mukherjee; Editing by
Lisa Shumaker)