Boeing/SOM1101 Opponents Trying to Elbow Out Competition, OneWeb Chairman Says
The law is clearly on the side of Boeing and SOM1101 on transferring two pending Boeing non-geostationary orbit (NGSO) applications to SOM1101, that smaller entity's owner Greg Wyler said in an interview. He said Boeing and his SOM1101 wouldn't have sought the transfers (see 1712070055) if they weren't confident of the legal basis. An FCC staffer told us the International Bureau is still early in its evaluation of the Boeing/SOM1101 request, and of proposed NGSO application amendments by O3b and OneWeb.
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Some NGSO operators opposed those transfers (see 1802130019), but Wyler said such objections are aimed at using the regulatory process to stifle competition. Owning only 11-plus percent of OneWeb and not being an employee means he doesn't have control of the company and thus doesn't violate rules prohibiting both OneWeb and SOM1101 from having parallel simultaneous applications, said Wyler, OneWeb's executive chairman and founder.
The agency staffer said one hiccup in IB consideration is that FCC rules don't give a good answer on how to handle amendments after a processing round cutoff date. Boeing, O3b and OneWeb proposed amendments all are very different -- O3b seeking to use fewer satellites (see 1801100044), OneWeb wanting approval for thousands more (see 1801050002) -- and the bureau likely will look at the three independent of one another, the staffer said. The Boeing/SOM1101 transfer involves two questions, the staffer said: whether Boeing can even transfer two pending NGSO applications, and whether Wyler's roles in SOM1101 and OneWeb run afoul of FCC rules.
Wyler said OneWeb and O3b, which he also founded, have the same goal of bridging the digital divide by ensuring affordable, global Internet access by 2027, saying SOM1101 "would likely fall in that mission." Wyler wouldn't talk specifics of SOM1101's relationship to OneWeb or its business plan but said details about SOM1101 and its plans will come out "over time."
Asked how the SOM1101/Boeing deal came about, neither Wyler nor Boeing commented. In its opposition to various petitions to deny (see 1803010006), Boeing said it filed its initial NGSO applications believing it would ultimately construct and operate the proposed broadband satellite network, but "a change in business plans" led to the substitution. Boeing said the SOM1101 substitution is "driven by changes in business realities analogous to a change in equity ownership, debt holdings or effective control."
The first launch of OneWeb satellites is expected later this year (see 1706270064), with the constellation to be functional as soon as next year, Wyler said. The time frame for SOM1101 operations would be evaluated after the Boeing transfer happens, he said.
Meanwhile, a joint OneWeb/Airbus/Airtel/Delta/Sprint collaboration -- the Seamless Air Alliance (SAA) -- should lead to in-flight connectivity standards that ultimately should make it easier for airline operators, mobile operators and the general public, Wyler said. SAA's formation was announced last week. The in-flight connectivity status quo "is all kind of a mess," resulting in "tremendous dissatisfaction" despite it being a growth industry, Wyler said. The SAA's goal is a standardized LTE/5G platform that will mean off-the-shelf kits for smaller airlines, he said.