UK Space Agency Just Dropped £16M on Satellites Constellation Technology – Is the UK Ready to Take on Starlink and OneWeb?
7th Feb 2025
The UK is ramping up its space game with a £16 million investment in two cutting-edge satellite projects. The funding, announced by the UK Space Agency, is part of a wider push to cement Britain’s position as a leader in satellite constellation technology, which are networks of small satellites working together to improve global connectivity.
It comes from the Connectivity in Low Earth Orbit (C-LEO) programme), which will inject up to £160 million into the sector over the next four years. The goal? To make satellites more efficient, capable, and commercially competitive in an industry that’s expanding at lightning speed.
Satellites That Change How We Connect
Satellite constellations are transforming global communication. They provide high-speed internet to places where traditional infrastructure simply doesn’t reach – think remote islands, rural communities, and ships in the middle of the ocean.
Beyond keeping people connected, these constellations are revolutionising industries like aviation and maritime, ensuring fast, reliable data access no matter where you are in the world.
Telecoms Minister Sir Chris Bryant is excited about what this means for the UK.
“The UK has all the cutting-edge expertise and technology to spearhead the latest advancements in satellite communications and become a leader in this high-tech industry.
“These government-backed projects will not only provide significant advancements in mobile communication but also help to bridge the digital divide, connecting communities in the most hard-to-reach areas.”
Why This Matters for the UK
The UK has long been a key player in space technology, particularly in satellite design and operations. But with the industry moving fast, staying ahead is crucial.
Just last year, over 2,900 satellites were launched – most of them part of commercial constellations. And that’s just the start. Experts predict that between 2021 and 2031, around 18,000 satellites will go into orbit, with three-quarters of them forming mega-constellations.
That’s a huge opportunity for UK businesses. Winning contracts in this expanding market could mean millions in revenue and a leading role in shaping the future of global satellite communications.
The Companies Behind the Innovation
So, where’s the money going? Two UK-based companies are leading the charge.
EnSilica plc, based in Oxfordshire, is getting £10 million to develop next-gen silicon chips and software. Their tech will be used in user terminals that connect with major satellite constellations, including OneWeb’s next-generation network.
Excelerate Technology Ltd, a Cardiff-based firm, is receiving £6 million to create MAMUT (Mobility and Autonomy Market User Terminal). This small, flexible device will let users switch between satellite operators and orbits via an app, cutting costs and boosting adaptability.
A Bigger Picture for the UK Space Industry
This isn’t just a one-off investment. The UK is deeply involved in space communications, working closely with the European Space Agency (ESA). The country also hosts ECSAT (European Centre for Space Applications and Telecommunications) at the Harwell Space Cluster, a hub for satellite innovation.
The C-LEO programme is handing out grants directly, but more funding from ESA contracts is expected to follow soon.
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