The UK Space Agency is investing £6.9 million in satellite communications that will transform connectivity and secure Britain’s place as a European space leader.
From faster connectivity to lunar missions, the funding will support five groundbreaking projects through the European Space Agency’s (ESA) ARTES (Advanced Research in Telecommunications Systems) programme, to develop groundbreaking satellite 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.
The growing importance of satellite communications
With European demand for satellite communications forecast to reach £40bn by 2033, even 2% of this would bring around £800m in revenue to the UK economy alone.
Space Minister Liz Lloyd explained: “Space technology, especially satellites, is 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 to improve global connectivity.
Which projects will receive the funding?
The winning projects are:
- Orbit Fab, £2.9m: This will deliver the Advancing Satcom Technology with Refuelling and Logistics (ASTRAL) project to refuel electric propulsion satellites using UK-developed technology.
- Goonhilly Earth Station, £1.6m: The AGILE: Antenna Ground Interface and LunaNet Equipment project will produce an interface unit that can be installed in global antennas to communicate with spacecraft using the internationally recognised LunaNet specification.
- Vicinity Technologies, £1.19m: 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.
- Archangel Lightworks, £356,000: This will advance optical communications through the Space Optical Link Integration Study, which investigates use cases for deploying Free Space Optical Communications technology within Eutelsat’s OneWeb LEO global network.
- Inmarsat Navigation Ventures Ltd, £881,000: This funding 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 satellite communications.
The UK’s role in European space ambitions
The funding for next-gen satellite communications 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.
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 a budget of £2.8bn for the period up to 2029/30.
“Today’s investment shows how the UK’s space ambitions translate into real-world impact,” said Dr Paul Bate, CEO of the UK Space Agency.
“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.”
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.






