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UK Reviews £2.4B Skynet Satellite Contract

November 9, 2026

2 min read

Key Takeaways

UK reviews £2.4 billion Skynet satellite contract.
Airbus and Lockheed Martin compete for the contract.
Contract covers two new military communications satellites.
MoD emphasizes no final decision has been made.

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Strategic Implications

The UK's review of the Skynet satellite contract may indicate a shift in its procurement strategy, with implications for the domestic space industry. The competition between Airbus and Lockheed Martin suggests a focus on securing the best value for the UK's military communications needs, which could have significant effects on the country's defence supply chains and industrial capabilities.

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What Happened

Prime Minister Weighs Competing Bids From Airbus And Lockheed Martin

The UK Prime Minister is reportedly reviewing the Ministry of Defence’s proposed selection of a contractor for the £2.4 billion Skynet military satellite programme, with Airbus and Lockheed Martin competing to deliver the UK’s next generation of military communications satellites. The contract covers two new military communications satellites, and the MoD has emphasized that no final decision has been made. The competition has prompted discussion about the UK’s ability to maintain sovereign control over its military satellite communications, with the MoD confirming that specific manufacturing and technical activities must remain in Britain regardless of which company wins. This was first reported by Unknown Source.

Source | Originally Published: November 6, 2023

Companies Mentioned