Virgin Galactic has won a contract from US-owned start-up OneWeb Ltd to launch a ‘constellation’ of 648 micro-satellites that will provide high-speed Internet connections and telephone services from space.

The deal was announced by Virgin Galactic founder Sir Richard Branson, who said: “OneWeb will build, launch and operate the world’s largest-ever satellite network, and Virgin Galactic’s Launcher One rocket system will help to make it possible, with frequent satellite launches at a much lower cost and with greater reliability than conventional rockets.

“The OneWeb satellite constellation has the potential to transform lives in ways that almost no other companies have done before. Imagine the possibilities for the three billion people in hard-to-reach areas who are currently not connected.”

The Launcher One system — a two-stage rocket planned to be able to deliver small satellites weighing up to 225kg into low Earth orbit — is currently being developed at the
Mojave Air & Space Port in California. Sir Richard said that it may not be ready for use until next year.

OneWeb founder Greg Wyler was previously associated with Google Inc and its efforts to build a satellite network for Internet connections. His company is based in the Channel Islands, and Sir Richard has now joined its board of directors.