UK backs next-generation satellite communications with £6.9 million investment
Source: gov.uk (2025-11-21)

The UK Space Agency is investing £6.9 million in satellite technology that will transform connectivity and secure Britain’s place as a European space leader.

The funding will support five groundbreaking projects through the European Space Agency’s (ESA) ARTES (Advanced Research in Telecommunications Systems) programme, part of the Directorate of Connectivity and Secure Communications. These projects showcase British expertise in next-generation satellite technologies and strengthen the UK’s role in advanced communications.

This investment underpins the UK’s Industrial Strategy priority capabilities: Satellite Communications, Position, Navigation and Timing, In-orbit Servicing and Manufacturing, Space Domain Awareness, and Space Data for Earth Applications.

With European demand for satellites up to 2033 forecasted to be worth £40 billion, even 2% of this would bring around £800 million in revenues for the UK economy alone.

Space Minister Liz Lloyd said:

Space technology and especially satellites, are essential to our daily lives. From the sat nav in your car to your mobile phone, from weather forecasts to your online banking – space is where it all happens.

By backing our UK sector, we’re not only cementing our position as a European space leader – we’re creating high-skilled jobs, attracting investment, and ensuring space technologies can connect communities to the space-enabled services they need.

The five UK-led projects span critical areas of innovation in satellite communications, from refuelling satellites to extend their lifespans, to developing 5G networks and optical links that will improve global connectivity.

Orbit Fab will deliver the Advancing Satcom Technology with Refuelling and Logistics (ASTRAL) project with a total UK funding of up to £2.9 million. The contract for the first stage of the mission, worth £1.3 million, has now been awarded by ESA. This mission will prove the capability to refuel electric propulsion satellites using UK-developed technology, ensuring satellites can remain in orbit for longer or can manoeuvre away from threats.

Goonhilly Earth Station in Cornwall will lead the AGILE: Antenna Ground Interface and LunaNet Equipment project, supported by £1.6 million in funding. Amidst the growing number of lunar missions, this project will produce an interface unit that can be installed in global antennas to communicate with spacecraft using the internationally recognised LunaNet specification. This will allow missions to seamlessly connect to ground infrastructure, improving mission success rates.

Vicinity Technologies will receive £1.19 million for its 5G NTN-based Satellite Access Networks project. The team will design and develop a versatile 5G Non-Terrestrial Network regenerative payload system and user terminals, including the entire software stack for both space and ground segments. This technology will support uninterrupted and scalable internet services globally, from hard-to-reach areas to smart cities.

Archangel Lightworks, working with the support of Eutelsat will advance optical communications through the Space Optical Link Integration Study (SOLIS) project, funded with £356,000. This study, delivered under ESA’s Sunrise programme, will investigate use cases for deploying Free Space Optical Communications technology within Eutelsat’s OneWeb LEO global network.

Finally, Inmarsat Navigation Ventures Ltd (Viasat UK) will receive £881,000 for the International Virtual Satellite Operators Network (Phase 2) project. This initiative will develop a service that enables governments to plan, procure, manage and monitor satellite communications services from Viasat and other providers, ensuring secure and coherent management of critical communications.

Dr Paul Bate, CEO of the UK Space Agency, said:

Today’s investment shows how the UK’s space ambitions translate into real-world impact. By advancing satellite communications technology, we’re not only building a globally competitive sector but also ensuring that communities – even in the most remote corners of the UK – can access the services they need. This is space delivering for people and powering our future economy.

By helping businesses, universities and research institutions commercialise breakthrough technologies, the government is creating high-skilled jobs in the UK’s £18.9 billion space sector and delivering tangible benefits - from improved weather forecasting to enhanced national security.

Laurent Jaffart, Director of ESA’s Connectivity and Secure Communications, said:

ESA is committed to supporting a vibrant and striving telecommunications ecosystem in Europe, while achieving a zero-debris environment in space. This milestone, with support from the UK Space Agency, will further strengthen the European autonomy and sovereignty that we are collectively striving for with our Member States.

Dr Colin Baldwin, Executive Director of the UKspace Trade Association, said:

UKspace’s Satellite Telecommunications Committee, run jointly with techUK, has made a strong case that our industry has the expertise, technology and talent to capture a significant portion of the global satellite communications market over the coming decade.

We are delighted to see so many of our member companies benefiting from and taking advantage of the UK Space Agency’s investment in the ARTES programme at the ESA Council of Ministers meeting in 2022 continuing to develop new innovations which will help to achieve this goal.

This funding comes ahead of the ESA Ministerial Council in Bremen on 26-27 November, where the Government will negotiate the UK’s investment into the future of Europe’s space ambitions, with a focus on economic growth and national security. Evaluation shows that every £1 invested in ESA returns £7.49 in direct benefits to the UK economy.

As well as ESA programmes, the UK space sector has access to a wider range of national space funding than ever before. To support national programmes and the UK’s membership of ESA, the government allocated the UK Space Agency (https://www.gov.uk/government/publications/dsit-research-and-development-plans-to-2029-to-2030/dsit-research-and-development-rd-plans-to-20292030) a budget of £2.8 billion up to 2029/30.

From pioneering satellite refuelling to transforming connectivity in remote areas, these projects show how investment in space delivers real benefits for people’s everyday lives.