October 4, 2026

Tannoch Brae

Investment Banking Services

OneWeb and the UK’s post-Brexit space strategy

The OneWeb executives watched nervously from mission management as their rocket blazed into the grey skies over Kourou, French Guiana. Nestled inside of the Soyuz ST-B’s bulbous fairing were being 6 of the company’s satellites, the first of 648 it planned to start into very low Earth orbit. Together they would type a constellation capable of furnishing large-velocity internet any place on the earth underneath, at costs competitive adequate to render terrestrial connection possibilities obsolete.

Just in excess of a year later on, OneWeb filed for individual bankruptcy protection in a New York courtroom. By then, the corporation experienced effectively released 74 satellites into orbit. Financing, even so, had demonstrated complicated to safe, a predicament that worsened with the onset of the pandemic. Eager to provide, OneWeb’s executives began knocking on the doorways of as numerous buyers as they could. A person of them belonged to the British authorities.

“We stated, we have a world-wide asset that would place Britain on the map, give you the connectivity you need to have likely forward,” OneWeb’s head of federal government relations Chris McLaughlin would afterwards tell Sky News. “Are you heading to wake up 1 morning and find out it has been bought by the US, Canada, China or [the] EU?”

McLaughlin and his staff could not have realised they were being preaching to the choir. OneWeb’s proposal meshed beautifully with the Uk government’s broader strategy for nurturing the country’s room sector, and most likely appealed to Primary Minister Boris Johnson’s Periclean penchant for pricey infrastructure jobs. OneWeb obtained not only a £400m bailout but also Johnson’s own aid in securing further funding from India’s Bharti Enterprises.

Several at the time had been puzzled as to what gain there was for the taxpayer in rescuing an ailing satellite company. Considering the fact that then, nevertheless, advocates of the sale really feel vindicated. OneWeb has attracted billions of kilos of new financial commitment – more than enough to dilute Whitehall’s controlling share to just 24% – and unveiled options to make its long run satellites in the Uk. “I believe if they wished to sell their stake now, you would see an wonderful return on it compared to when they entered,” says Richard Franklin, controlling director of defence and place at Airbus British isles, a near husband or wife of OneWeb’s.

Indeed, the government’s National Place System hails OneWeb’s rescue as contributing toward ‘making the Uk a globe chief in room,’ a target that will direct to huge rewards for the financial state and modern society at large in regions such as interaction, navigation and close to-Earth observation. Even so, “it’s quite hard to set your finger on any individual tactic that is remaining promoted inside of that document,” says Sa’id Mosteshar, space specialist and study fellow at the Institute of Sophisticated Lawful Reports. Little can be observed, he suggests, on what money will be invested where, or which sub-sectors it needs to increase.

Identical uncertainty clouds the UK’s upcoming in place. The federal government has claimed it aims to seize 10% of the world space economic system for the country by 2030. And though it may possibly be argued that producing a corner of outer space permanently England would match the country’s comfortable ability aspirations, it still remains unclear no matter if Whitehall has what it usually takes to start the British high-tech providers into the stratosphere – and outside of.

uk space strategy
A OneWeb rocket carrying 36 satellites being ready for start in Vostochny Cosmodrome, Russia. (Photo by Sergei Savostyanov/TASS by means of Getty Visuals)

OneWeb and the UK’s space technique

Even so, the United kingdom still punches earlier mentioned its pounds when it will come to area, claims Carissa Christensen. Not only does the region possess an enviable significant-tech investigation and manufacturing sector, with important strengths in highly developed computing and engineering, but also world-course universities manufacturing talent in all these places 12 months soon after year. As these types of, adds the CEO of BryceTech, “the United kingdom has been a major player in the area economic climate for a extensive time in many methods,” both attracting huge-name satellite and aerospace corporations Airbus and Thales Alenia Space to its shores even though cultivating homegrown firms these types of as Sky and Inmarsat.

These kinds of corporations are the vanguard of a a lot broader hive of substantial-tech manufacturing and study exercise inside of the United kingdom economy creating £16bn a year and supporting 46,000 careers. About 3,500 of those people are at Airbus, clarifies Franklin. “That’s a combination of products and services, tiny satellites, huge telecoms, exploration, and the army facet,” he suggests. “We’re across a amount of domains, so it really does travel a ton of R&D.”

The United kingdom government also spends a lot less on house, as a proportion of the country’s GDP, than its closest rivals in room, France and Germany. “On the one hand, you can argue that that signifies the Uk ought to spend far more,” says Christensen. France, for example, by now has an sophisticated, heavy launch ability at its facility in Kourou. On the other hand, presented the UK’s innate strengths in R&D, its lesser state-led contributions “maybe suggests [it] is obtaining superior price out of what it is paying out.”

The creation of a nationwide house agency, collectively with the United kingdom government’s marketing of a indigenous start ability, also displays its seriousness of intent when it comes to area argues Christensen. “There are very several nations that can conduct launches from their own shores,” she says. Although the Uk is so much concentrating on producing modest, business spaceports, their very existence will prove central in defining its identification as a spacefaring nation.

It’s also probably to make it very attractive to US shoppers, claims Christensen. The federal federal government in specific could show a wellspring of new contracts. Dependable for roughly 50 percent of full world-wide expenditure on space-based mostly enterprises, Washington is probable to see the United kingdom as an attractive alternate launch web site, specifically presented its status as a single of the US’ closest allies. Even without the benevolence of Washington, the United kingdom house sector has captivated massive expense, positioning the nation 3rd guiding the US and China in worldwide rankings.

Much of that funds has, admittedly, has been driven by OneWeb. Even so, the company’s extended-phrase results is much from assured. Despite the fact that the assure of satellite web has found billions invested in corporations such as OneWeb, the demand from customers for these providers around and above terrestrial alternate options has not been tested further than question. “There is no certainty that individuals are heading to be monetarily profitable corporations,” suggests Christensen.

It is also a crowded marketplace. Even though OneWeb has argued that its aim has been to act as a system for personal and community intermediaries to deliver communications providers, Mosteshar suggests that there is minimal halting SpaceX’s Starlink from doing the similar. What’s extra, the US company’s prepared constellation of 42,000 micro-satellites is established to dwarf OneWeb’s comparatively modest fleet of 648 (it remains unclear when they will be fully operational.) “I feel [OneWeb] will battle in the market,” Mosteshar states.

The UCL professor views any boosterism of the UK’s recent place sector with scepticism. “The area economy in the United kingdom is small,” says Mosteshar. Its prospective, he provides, has been continually linked to the tempo of its expansion, which commenced from an exceedingly small foundation. It is also, he suggests, extremely optimistic to believe hundreds of intercontinental businesses will flock to the Uk to join its burgeoning house sector, which he considers not likely to come about absent of new and sizeable tax breaks. “It a little reminds me of Virgin Galactic,” says Mosteshar. “It’s been ‘next year’ for around a 10 years [as to] when they’ll be bringing area tourism to people today.”

uk space strategy
The future website of the SaxaVord Room Port on the Isle of Unst, in the Shetland Islands. At minimum two suborbital launches are prepared for later this year, alongside with 1 orbital mission. (Picture courtesy of SaxaVord)

Launching pads

Scott Hammond does not want to wait around another 12 months. As COO of SaxaVord Spaceport (previously Shetland Place Centre), Hammond has already invested sizeable time liaising with scientists, marketplace inspectors, lawyers and nearby council officials to get the facility off the ground. Positioned on a previous RAF foundation on the Isle of Unst, the facility – which will include things like 3 start pads, all catering for commercial rockets up to 30 metres tall – will have to receive arranging permission from Shetland Council in a few of weeks’ time, states Hammond. But that is tiny fry in comparison to the other style and regulatory concerns it’s been wrestling with up to this point.

“When we started to style the spaceport, there ended up no regulations,” states Hammond. “How do you style and design something if you really don’t know what you are coming up with in opposition to?”

By prioritising protection higher than all other issues, SaxaVord settled on Unst as the suitable locale for a spaceport, in that launches could be built absent from any major populace centres (it also has, says Hammond, amazingly very good transportation infrastructure left in excess of from the heyday of North Sea oil.) It also intended, even though, obtaining added permissions from Maritime Scotland as nicely as the Icelandic and Norwegian governments, should really any rocket phases fall into their territorial waters. There were being also no specific United kingdom safety laws for launch pads when SaxaVord started their organizing get the job done, forcing it to duplicate finest tactics from CFR 420, the FAA direction for US business launch operators.

This technique seems to be spending off – in 2020, the Uk House Agency authorised Lockheed Martin’s proposal to move its British isles Pathfinder Rocket plan from Sutherland House Centre to Unst, with its 1st start scheduled for later on this yr. This will be preceded by two suborbital missions, claims Hammond. It is Pathfinder’s orbital launch, having said that, that has relished the most support from Whitehall, claims Hammond, “particularly the primary minister. Which is the just one that is definitely exciting to him.”

Hammond envisions SaxaVord running like a commercial airport, with launches scheduled to neat, hourly timeslots. It’s the form of missing url that the Uk governing administration envisions will switch the place into a spacefaring country. For his portion, Mosteshar is sceptical that the financial system can sustain so quite a few spaceport initiatives at as soon as. Though he concedes that SaxaVord’s endeavour is the most highly developed out of the seven, “we really don’t even have our have launchers as yet,” he claims.

Will the United kingdom satisfy its goal of capturing 10% of the world’s space economy? Hammond likes to feel so. “I really do not think it is an unrealistic target, but it is extremely, pretty demanding,” he suggests. In his perspective, the govt requires to concentrate on loosening existing constraints on launching from the Uk. Hammond imagines a nightmare state of affairs of a US business booking a start slot in Shetland 6 months in advance, only to hold out 18 months for a license to do so. “They’ll go somewhere else,” he suggests.

They could go to Andøya, an current spaceport that the Norwegian governing administration is encouraging to update to cope with orbital launches. The Uk governing administration desires to be just as savvy about funding worthwhile launch web pages, claims Hammond. Even though the National Area Strategy mentions the chance of grants, it is not funds that SaxaVord has yet seen. “We’d adore some,” says Hammond, despite the fact that “it’d be far superior for them to give us contracts,” he adds. Acquiring Whitehall as a trustworthy industrial lover fairly than a economic donor, argues Hammond, is a far more reliable way of looking at that assistance filter down into the broader economic climate.

For Franklin, the concern is pace. When he is heartened by the enthusiasm the government has revealed for area in the latest a long time, “the United kingdom requirements to speed up what it really is carrying out,” he suggests. Right after all, provides Franklin, it can be been a ten years due to the fact Whitehall created its initial, tentative motivation to creating a national start capability. In that time, SpaceX developed its individual reusable rocket that is now remaining utilized to resupply the Global Area Station. The authorities desires to clearly show very similar ambition, states Franklin, “driving countrywide programmes to construct capacity, that then leverages off and generates the entrepreneurial networks and spin-offs that can travel exports.”

All this requires adequate will from Whitehall. On this front, Christensen is cautiously optimistic. Merely put, the soft ability pros conferred by an active place sector are as well alluring for the government to dismiss. As perfectly as granting the region accessibility and affect over the varieties of units that undergird world wide communication, it also augments “the disproportionate diplomatic affect and access that the Uk has globally,” suggests Christensen. That’s going to be important as the space overall economy expands and the skies improve at any time-far more crowded. Inevitably, new challenges will come up about how finest to control world wide place website traffic – complications that, if the appropriate choices are made, the Uk and British business enterprise will have a job in assisting to fix.

Attributes author

Greg Noone is a characteristic author for Tech Keep track of.