The commitments appear in the UK Space Strategy, published on 8 September 2026. They form part of a £2.8 billion satellite communications package covering defence services, technology development and public-sector connectivity.
SKYNET will remain the foundation for sovereign, sensitive defence communications and services to NATO allies. Commercial services and allied capabilities will complement it under a hybrid approach.
£2.3 billion for military communications
The defence allocation will fund satellite communications services for the UK Armed Forces over four years. It is the largest component of the strategy’s satellite communications funding package.
The document identifies satellite communications as a requirement for national security and resilience. These services support military operations, diplomatic communications and emergency services.
Investment in SKYNET will maintain its role in sensitive defence communications. The government will combine sovereign capabilities with allied cooperation and commercial services to provide flexible connectivity.
The approach will also support crisis response and emergency operations. The objective is to improve resilience across both civil and defence communications.
The £2.3 billion covers military satellite communications services. The strategy does not identify it as a separate contract for constructing new SKYNET satellites.
Ministry of Defence to lead government procurement
The Ministry of Defence will establish a unified approach to government satellite communications. It will coordinate requirements and procurement through the Enterprise Space Category.
This procurement model will bring together demand across departments. It draws on experience elsewhere in defence and extends that approach to space services and technologies across government.
The strategy says coordinated requirements can secure services more effectively than numerous smaller procurements. Pooling demand should also improve efficiency and identify requirements that might otherwise remain unrecognised.
Satellite communications will be the first area to adopt the model. The Ministry of Defence will provide technical expertise alongside the combined purchasing power of government.
By 2030, the government aims to have set out an integrated national satellite communications architecture. This will include interoperability standards, unified commercial procurement structures, updated spectrum access rules and central coordination.
By 2035, the objective is continuous communications for defence, security, crisis response and emergency services. The architecture will combine sovereign systems, partner capabilities and commercial services.
Multiple operators and common standards
The government wants multiple operators to provide access to different connectivity options. Open standards and interoperability will allow their capabilities to work together.
Competition will support innovation within this approach. The government will set out clearer expectations and requirements for industry.
The strategy also calls for a streamlined process for buying satellite communications services. Suppliers should gain clearer routes to contracts and more consistent engagement with government.
International cooperation will remain central to delivery. Partnerships will support access to allied systems, improve interoperability and accelerate capability development.
The government also wants British technologies embedded in emerging global communications architectures. It will seek benefits from its Eutelsat shareholding as an investment in satellite communications capability where possible.
Clearer contract opportunities for industry
The Enterprise Space Category will provide routes to market across government. These will include frameworks managed by the Government Commercial Agency.
Defence demand will also be signalled through the National Armaments Director Group. A published cross-government pipeline will identify forthcoming space opportunities.
The aim is to make demand more predictable for suppliers. Greater visibility should help companies assess contract opportunities and plan investment.
The government will consider acting as an anchor customer where it has clear capability requirements. Its wider industrial approach will favour fewer, higher-value grants for businesses.
Repeat funding will require evidence of impact from previous research and development. The stated objective is progress towards commercialisation and profitability.
Procurement will also support domestic supply-chain resilience. The strategy identifies the Technological Capital framework used in SKYNET as one mechanism for securing access to critical skills, facilities and capabilities.
The government may require certain activities to take place in the UK. This is intended to strengthen freedom of action and industrial resilience within an international supply chain.
£429 million for technology development
The satellite communications package includes £429 million for industrial development through research and development funding. This covers ESA’s Advanced Research in Telecommunications Systems programme and the UK Space Agency’s Connectivity in Low Earth Orbit programme.
The low Earth orbit programme will part-fund the commercialisation of innovative capabilities. The allocation also includes ESA’s Moonlight programme for a dedicated lunar telecommunications and navigation constellation.
The government wants defence users to access advances in satellite communications technology. Supported areas include direct-to-device services, terminals that roam across services, and quantum and optical technologies.
ESA’s European Centre for Satellite Applications and Telecommunications at Harwell provides facilities for this work. Its 5G/6G hub supports the development of next-generation connectivity.
The strategy also highlights a UK-funded AI laboratory for satellite communications. These facilities are intended to help industry gain expertise in emerging architectures.
Satellite communications generated £3.53 billion in UK space industry income in 2022/23. That represented more than 36% of the sector’s total income.
The strategy identifies further markets in aviation, maritime services, autonomous systems and direct-to-device connectivity. It also points to the integration of satellite services with terrestrial 5G and 6G communications.
By 2035, the government wants UK industry to supply commercially successful equipment and services operating across multiple orbits at scale. UK-based research, infrastructure and manufacturing will support that objective.
Public services and the next procurement phase
At least £75 million will fund satellite communications for public services. This includes low Earth orbit services for users in the UK and Overseas Territories.
Other planned activities include improving Emergency Services Network resilience. Funding will also support low Earth orbit technology for Wi-Fi connectivity on UK mainline trains.
The government will assess whether the coordinated procurement model can be extended to other space activities. Satellite communications will be the first application of its plan to combine departmental demand and defence expertise.
