TAMPA, Fla. — Expansion in the Cosmos
The European Investment Bank (EIB) has pledged €25 million (approximately $30 million) to OQ Technology, a Luxembourg-based firm, to enhance its direct-to-device satellite constellation. This strategic move reinforces Europe’s ambitions to contend with U.S.-led initiatives aimed at providing smartphone connectivity from space.
OQ Technology disclosed on February 25 that this financing will facilitate the rollout of over 20 small satellites, including its inaugural spacecraft designed specifically to deliver connectivity to smartphones using C-band technology, with a launch expected mid-year.
Currently, OQ Technology employs S-band frequencies to connect both proprietary and commercial off-grid tracking and monitoring devices, deriving its operations from 10 Internet of Things (IoT) satellites already stationed in low Earth orbit.
In a notable demonstration last year, the firm utilized one of its satellites to send an emergency broadcast message to standard smartphones, showcasing the preliminary capabilities of direct-to-device (D2D) communication.
Transitioning to C-band technology offers enhanced bandwidth compared to S-band, while the additional satellites are anticipated to elevate coverage and reduce latency, aiming for a multi-band constellation that serves both IoT and smartphone markets.
Europe’s Response to a Growing Market
This financial backing emerges as operators in the United States establish a significant lead within the burgeoning D2D market. SpaceX, for instance, has commenced offering messaging and limited data services across various countries while seeking access to C-band and other frequencies to broaden its service offerings.
Similarly, AST SpaceMobile, another U.S. company, intends to accelerate satellite deployments this year and has secured a $30 million contract from the U.S. Space Development Agency to showcase D2D broadband connectivity for military applications.
“The space sector is experiencing rapid growth globally, and OQ Technology is positioned to compete,” remarked Andrius Kubilius, European Commissioner for Defence and Space, in an official statement. “Europe must seize this momentum to enhance its competitiveness, resilience, and autonomy.”
The specifics of OQ Technology’s debt arrangement remain undisclosed, but this financing is supported by the European Commission’s InvestEU initiative, which employs EU budget guarantees to attract both public and private investments in critical sectors such as space.
This initiative follows prior EIB support for Spanish satellite operator Sateliot, which in 2024 announced plans to evolve from 5G-compatible IoT services to direct smartphone connectivity.
Emphasizing Institutional Capital
In 2022, OQ Technology secured €13 million in Series A funding, co-led by the venture capital branch of Saudi oil and gas conglomerate Aramco, along with a fund associated with Greek early-stage investor 5G Ventures.
The firm had sought to raise €30 million in a Series B funding round that included a commitment of €15 million from the Luxembourg Space Sector Development (LSSD), a government-supported initiative co-managed with SES, the Luxembourg-based multi-orbit satellite operator.
SES has notably invested in U.S. D2D projects like Lynk Global and Omnispace, as part of its strategy to penetrate this emerging sector.
Instead of pursuing a wider equity raise aimed at long-term objectives, Omar Qaise, the founder and CEO of OQ Technology, conveyed to SpaceNews that the company has opted to focus on advancing specific payloads and achieving critical milestones to mitigate technological risks. This strategy intends to attract more institutional investors, such as the EIB.
“We are actively engaging with additional long-term investors as we expand our IoT and D2D satellite constellation,” he concluded.
Source link: Spacenews.com.
