Eutelsat OneWeb (SPA0017)

Eutelsat Group’s Response to the House of Lords Select Committee Call for Evidence on UK Engagement with Space

Eutelsat Group welcomes the opportunity to respond to the House of Lords Select Committee’s call for evidence on UK Engagement with Space.

Background on Eutelsat Group 

Eutelsat Group is a global leader in satellite communications, delivering connectivity and broadcast services worldwide. Formed in 2023 through the combination of France-based Eutelsat Communications and UK-based OneWeb, it is the first fully integrated GEO-LEO satellite operator, with a fleet of 35 geostationary satellites and a Low Earth Orbit (LEO) constellation of over 650 satellites.

Eutelsat Group’s geostationary satellites provide coverage across Europe, Africa, the Middle East, Asia-Pacific, and the Americas. Leveraging prime orbital slots and extensive ground infrastructure, the Group serves broadcasters, telecommunications providers, and government agencies, either directly or through distributors.

Through OneWeb, Eutelsat operates one of only two commercially active global LEO constellations, delivering high-speed, low-latency, and cost-effective connectivity. The OneWeb LEO constellation’s satellites orbit approximately 1,200 km above Earth - 30 times closer than geostationary satellites - achieving an average global two-way latency of 70ms. By harnessing its LEO network, Eutelsat Group extends connectivity to consumers, businesses, schools, and remote communities where terrestrial infrastructure is unviable.

Strategic Importance of UK Space Policy

The UK Government has been highly active in shaping space policy and satellite communications regulation. Broadly speaking, these policies have been successful, particularly in establishing a strong domestic regulatory regime that has enabled world-leading capabilities – such as the deployment of OneWeb, the world’s second largest Low Earth Orbit (LEO) satellite constellation. The UK has also demonstrated international leadership in space sustainability, strengthening its position as a key player in the sector and a potential hub for the growth of the Active Debris Removal (ADR) and Integrated Orbital Services and Manufacturing (IOSM) industries.

However, the ultimate success of the UK space industry will depend on focusing on areas where it has a clear competitive edge and fostering global collaboration to scale its capabilities. Past UK space strategies have been too vague, and the UK cannot be a ‘superpower’ in all areas of the sector. It is therefore essential that the UK Government effectively leverages existing assets and advantage to advance strategic objectives and enhance the nation’s position in an increasingly competitive global market.

For example, the war in Ukraine has underscored the critical role of LEO satellite connectivity in conflict zones, reinforcing the growing strategic importance of the OneWeb LEO constellation. As a UK-regulated and operated system, OneWeb provides a capability that enhances both UK and European resilience in an increasingly contested space environment. With global competition in LEO communications intensifying, OneWeb’s UK-based infrastructure will be an essential asset for secure and reliable satellite connectivity. Meanwhile, other nations are rapidly expanding their own LEO capabilities - China is developing its Qianfan and Guowang mega-constellations, while Amazon’s Kuiper programme aims to deploy much of its US constellation by 2026.

Scaling the UK Space Industry

A key challenge for the UK space sector is ensuring that innovative companies can scale effectively. Successive governments have fostered a vibrant space start-up ecosystem, supported by the strength of UK academia. However, a persistent issue - common across multiple sectors - is that many start-ups relocate abroad as they seek late-stage funding and growth opportunities. The UK therefore needs to take more robust action to ensure these space companies can transition from start-up phase to fully-fledged businesses with strong UK credentials.

A critical step in addressing this challenge would be the establishment of a long-term procurement programme for space and satellite services. The government’s role as an anchor customer is crucial - not only for satellite communications but across the broader space industry. By committing to long-term procurement contracts, the UK can de-risk private investment and provide the commercial viability necessary for companies to scale and innovate.

Furthermore, the incorporation of export credit financing, as seen in countries such as the US and France, would further bolster UK space sector growth. For example, the US Export-Import Bank supports space ventures through financing mechanisms[1], helping US-based companies scale their operations. Similarly, France’s export credit agency, Bpifrance, has provided significant backing for the French space industry[2]. By adopting a comparable approach, the UK can stimulate both domestic and international demand, ensuring a robust supply chain and scalable capabilities that support national security and technological advancement.

The UK must deliberately and decisively align government procurement, investment, and its regulatory frameworks to facilitate long-term industry growth. Setting clear domestic and sovereign requirements will provide the necessary funding and alignment while positioning the government as a strong and reliable customer for space services. This approach will not only enable the UK to sustain and scale its space industry but also ensure it remains a key player in the rapidly evolving global space economy.

UK Space Launch Capabilities

While launch capacity is an important part of the space ecosystem, the economic viability of UK-based launch services remains uncertain. The global launch industry is dominated by large, well-established players such as the US, India, France, and Japan, which have significant infrastructure and cost efficiencies that the UK would struggle to match. Given these entrenched market dynamics, sustaining a commercially competitive UK launch industry would require a long-term, government-backed customer base, which is not currently in place.

Government investments might be better deployed in supporting areas where the UK has a clear competitive advantage - such as satellite manufacturing and space-based services. Investing in advanced satellite technology, payload development, and innovation in downstream applications could yield a more immediate and significant impact on the UK’s global standing in space.

For large-scale satellite operators like Eutelsat OneWeb, launch services typically require heavy lift rockets capable of deploying multiple satellites in a single mission. UK launch providers are not currently positioned to support these large-scale requirements. However, smaller UK-based launch services could be considered for niche applications, such as deploying individual technology demonstration satellites - provided they offer commercially attractive solutions.

Ultimately, the success of the UK's launch ambitions will hinge on the level of customer demand, which will include not only the needs of operators but also those of other governments – including the UK. The ability to compete effectively in a highly competitive and cost-sensitive global market will be key to the success of these ambitions.

UK International Partnerships in Space

The UK is already a leader in space manufacturing and technology and is deeply integrated into European and global supply chains. Companies like Eutelsat OneWeb have made significant investments in UK space technologies, contributing to high-skilled, high-paying jobs and driving technological advancements. To maintain its leadership, the UK must ensure it remains an attractive destination for such investment.

Space is increasingly central to global connectivity, economic growth, and national security. However, building and maintaining a globally competitive space sector requires substantial financial and technical resources, making international collaboration vital. Strategic international partnerships must therefore remain a cornerstone of the UK’s space policy, opening doors to global markets, supply chains, and shared expertise.

Europe remains a crucial coalition partner, as evidenced by collaborations within the European Space Agency (ESA) and with key industrial players such as Thales Alenia Space and Airbus Defence and Space. The US is another key ally, however, non-US companies face challenges accessing its market. Given these dynamics, the UK must prioritise strengthening ties with European partners while maintaining strong cooperation with the US. Additionally, the UK should take a more proactive role advocating for fair regulations that support British interests in international bodies such as the ITU.

The UK government must also take a more focused and proactive approach to securing high-value international partnerships for UK space operators. Rather than simply advocating for the space sector in general, the government should be actively identifying and facilitating specific company commercial deals. Through the Department for Business and Trade (DBT), the government should directly connect UK companies with high-potential global customers, including foreign satellite operators, telecom firms, and government space agencies. By targeting specific industries and regions, the government can help UK space companies secure tailored, high-impact business opportunities that directly contribute to their growth.

For example, the government could help UK satellite communications companies secure contracts with foreign governments seeking specific new connectivity solutions, or link UK operators with industries in need of satellite data services. By focusing on these specific commercial opportunities, rather than relying on broad, passive promotion of the space sector, the government can drive real, tangible results. This proactive approach would ensure that UK space companies are not just part of a general conversation, but are directly positioned to seize profitable, long-term contracts, solidifying their presence in global markets and reinforcing the UK's leadership in the space industry.

Domestic and International Regulation

Space Licensing and Regulation

The Space Industry Act 2018 has been a significant step forward in establishing a comprehensive space regulatory framework for the UK space sector. However, as the global space sector becomes increasingly competitive, the UK must work to maintain an environment that enables innovation and the establishment of long-term, sustainable space businesses. This requires continued evolution of the regulatory framework to address the unique needs of the space sector, particularly in ensuring that the UK's regulatory processes align with the pace of technological advancements as well as new business models.

Responsiveness and Adaptability of UK Space Regulation

The UK has shown a willingness for this: for example, the UK Space Regulator – the Civil Aviation Authority – has been responsive to industry feedback, recently making the space licensing process more user-friendly and removing unnecessary bureaucracy[3]; and DSIT are currently leading a wide-ranging review of UK space regulations.

However, a more proportional approach to licensing and compliance checks should be introduced to ensure that the regulatory process is both efficient and targeted. For example, well-established global operators with proven track records, substantial financial resources, and long-term sustainability should not undergo the same level of scrutiny as a start-up operator that has not yet established its business model or secured funding. The regulatory framework should differentiate between these types of operators, ensuring that new entrants are given the appropriate level of oversight while streamlining the process for established players.

By tailoring the regulatory process to the maturity and financial stability of operators, the UK can foster innovation and competition in the sector. Countries like the United States and France have already implemented tiered regulatory systems, where the level of oversight is scaled according to the size and risk profile of the operator. This approach ensures that smaller, less proven companies face the necessary scrutiny, while major players benefit from a more efficient process reflecting their stability and experience. Introducing a similar system in the UK could reduce regulatory burdens and attract a wider range of operators, ultimately driving growth and innovation in the sector.

Technical Expertise and Licensing Efficiency

Another area where the regulatory process must improve is the development of technical expertise within the relevant government bodies. To effectively regulate emerging space technologies and the companies developing them, regulators must possess an understanding of the technologies and operational realities of the sector. Regulators and officials tasked with approving and overseeing space operations must not only understand the technical aspects of the space industry but also appreciate the business and commercial challenges faced by industry, whether that be start-ups or multi-national operators.

Currently, there is a gap in this area, and it is crucial that investment is made in developing the necessary expertise within regulatory bodies. This will help ensure that licensing decisions are informed and responsive to the fast-evolving nature of space technologies and the realities of commercial businesses.

Licensing Timeframe and Process Transparency

Licensing is a critical dependency for satellite operators, and inefficiencies in the process can severely impact operations. As a consequence, addressing the licensing process's efficiency is critical. On this front, the regulator must commit to making a decision on space activity license applications within a defined timeframe.

Uncertainty and delays in the licensing process can be detrimental to operators for which licensing is a critical dependency for wider operations. If additional time is required for a decision, the CAA must provide a clear justification, whether due to internal review processes or the need for further information from the applicant. The onus should be on the regulator to justify any delays and demonstrate why the application process cannot be completed within a certain timeframe. A more predictable and transparent process will improve industry operations, confidence and execution, and help provide the UK with a competitive edge in the global space market.

Space Sustainability

Space sustainability is important to the long-term viability of the space environment. The UK has taken a leadership role in promoting responsible space operations - including as a proponent of the UN Long-Term Sustainability Guidelines[4], and providing financial support for the development of Active Debris Removal (ADR) missions[5].

To ensure a truly global approach to protecting the space environment, it will be crucial for the UK to continue championing space sustainability through international forums and bilateral partnerships. This leadership not only safeguards the orbital environment but delivers real industry and economic benefits at home. A consistent, rules-based international framework gives UK companies a competitive edge - reinforcing both national interests and the UK’s wider influence in global governance of space. By shaping global norms and setting high regulatory standards, the UK can strengthen its position as a trusted hub for responsible operators and as a leader in in-orbit services and debris mitigation technologies.

Satellite Spectrum Regulation and the International Framework

An effective international regulatory framework for satellite spectrum, such as that overseen by the International Telecommunication Union (ITU), is essential for ensuring equitable access to spectrum and minimising harmful interference between satellite systems. The ITU plays a central role in coordinating the global use of the radio-frequency spectrum and satellite orbits to prevent interference and enable the efficient use of space-based services. With the rapid growth in satellite deployments, particularly with the rise of large constellations, international coordination has indeed become even more critical to avoid spectrum congestion and interference.

However, challenges arise when certain countries introduce their own domestic regulations that bypass established international coordination processes. For example, some nations allow satellite operators to provide services in-country without adhering to global coordination frameworks, usually to benefit their own industry. This undermines the efficiency of the international regulatory system and increases the risk of harmful interference between satellite networks, ultimately limiting the growth potential of the global space economy.

While the global regulatory system remains essential and largely functional, it is increasingly tested by rising competition and the actions of individual nations. Greater adherence to international standards is necessary to maintain the integrity of the system. The UK cannot enforce compliance alone, but it should continue to press for stronger global coordination through its international engagement efforts.

UK Influence in International Forums

Ofcom is widely recognised as a world-leading regulator in spectrum management. It has taken a proactive approach to regulating new space technologies and was one of the first regulators to develop licensing frameworks for LEO satellites – with OneWeb being the first to receive a licence under this framework.

However, with respect to international representation, while Ofcom is an independent regulator domestically, its role in international forums[6]  (such as the ITU) is to represent the UK Government and advance UK policy and industry interests. Ofcom should therefore advocate more strongly for the positions and interests of UK operators in these forums, as other nations' regulators do in promoting their domestic industries. The UK government should therefore ensure Ofcom has clear strategic direction to advocate more strongly for UK industry in international forums, particularly given the fast-evolving nature of space and spectrum regulation.

Conclusion

The UK has made significant progress in shaping effective space policy, building a strong regulatory framework, and driving satellite innovation. To maintain long-term competitiveness, the government must prioritise smart investment, targeted domestic procurement, and strategic global partnerships.

By aligning policy with industry needs - particularly through a clear procurement strategy and focused international collaboration - the UK can position itself as a leader in the evolving space economy. A sustained, proactive approach will be critical to securing the UK’s role in the next generation of space development.

10 April 2025