Airbus Defence and Space has secured a contract from OneWeb to design and manufacture around 900 microsatellites, which will be used to provide internet access to billions of people worldwide.
The satellites will weigh less than 150kg and are planned for launch into low Earth orbit from 2018.
Airbus Defence and Space space systems head François Auque said: "Teaming with OneWeb with a requirement to produce several small satellites each day has inspired us to develop innovative designs and processes that will dramatically lower the cost in large volumes for high-performance space applications.
"Without doubt, this programme is challenging but we’re ready for it because we have leveraged resources and expertise across the entire Airbus Group."
The company plans to carry out design and production of the first ten satellite facilities in Toulouse, France, while full series production is planned to be performed at a manufacturing plant in the US.
Around 700 satellites will be launched initially, while the remaining will be held as spares for replacements when required.
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By GlobalDataReuters cited OneWeb founder and CEO Greg Wyler as saying that the project will cost around $2bn, which is partly funded by UK-based Virgin Group and chip maker Qualcomm.
Virgin Galactic will launch some of OneWeb’s satellites.
OneWeb space systems head Brian Holz said: "We look forward to working with Airbus Defence and Space in order to bring to bear the best resources around the globe for achieving affordable internet access for everyone."
Image: Design of an Airbus Defence and Space microsatellite. Photo: © 2015 C3 Creative Code and Content GmbH / Airbus DS GmbH.