UK mulls next-gen satellite subsidies for Brit companies
- Reference: 1702292410
- News link: https://www.theregister.co.uk/2023/12/11/uk_gov_seeks_approval_for/
- Source link:
An [1]announcement from the Subsidy Advice Unit (SAU), part of the Competition and Markets Authority (CMA), reveals that it was asked by the [2]UK Space Agency (UKSA) to look over a subsidy scheme for the Connectivity in Low Earth Orbit (C-LEO) program.
The program was unveiled by UK government earlier this year as a scheme to fund development of the next generation of satellite communications hardware, an area where Britain has some notable strengths.
[3]
C-LEO promises to provide up to £93.75 million ($118 million) of grant funding, which may continue through to February 2028. Applicants will be able to apply individually or as part of a consortium and request funding for up to £25 million ($31.4 million) per project.
[4]
[5]
According to the SAU, the total percentage of project costs eligible for funding will be based upon the size and nature of the organization(s) applying. For large enterprises, this means 25 percent of the project costs, 35 percent for medium outfits and 45 percent for smaller enterprises. An additional 15 percent can be made available where projects demonstrate "effective collaboration."
Key areas identified as strong candidates for getting funding include the "communications hub," made up of onboard digital processing and supporting systems; optical links for inter-satellite communications; software (specifically AI) to ensure satellites stay in position; and end user ground terminals.
[6]
SAU said it will complete its report within 30 working days. Anyone wishing to comment can send submissions to the agency via email, but these must be received by December 19. SAU is set to publish its report on January 19.
The government reckons the value of low Earth orbit satellite constellations for communications was demonstrated during the ongoing war in Ukraine, where they have been able to ensure continuous and reliable connectivity, even in the most challenging circumstances.
[7]Two sats, one customer: Japan's NTT signs up for Amazon's space internet
[8]India's space gatekeepers pick Eutelsat OneWeb to provide satellite broadband
[9]Amazon's Project Kuiper thrusters deliver Prime orbit adjustments
[10]Musk's broadband satellite kingdom Starlink now cash flow positive – or so he claims
The SAU said satellites will play a key role in extending connectivity to remote and rural parts of Britain, and the C-LEO scheme is to build on the country's "established and growing" satellite industry by providing UK researchers and businesses with critical support to drive the development of new constellations.
At the time of announcing C-LEO, the government said it was exploring whether funds could be supplemented by an additional £60 million ($75 million) from the European Space Agency's UK-backed Advanced Research in Telecommunications Systems (ARTES) program.
But is £93.75 million really enough, when compared with the €2.4 billion ($2.55 billion) the EU has budgeted for its [11]IRIS 2 satellite constellation project?
[12]
Gartner VP analyst and telecoms boffin Bill Ray said he approves of C-LEO, which appears to be directing cash where it can make a difference.
"I hate to be less cynical than usual, but in general terms, I rather like this plan. It's much better than throwing money into grand schemes built on CGI renders and political dreams, most of which never get off the ground," he told us.
"The idea seems to be to stimulate development of technologies which will be used by communication satellites in LEO, rather than pretending that the UK is going to build its own LEO constellation, and that's quite sensible," Ray added. "We do stand a good chance of providing some key technologies to make it happen." ®
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[1] https://www.gov.uk/cma-cases/referral-of-the-connectivity-in-low-earth-orbit-programme-by-the-uk-space-agency-uksa
[2] https://www.gov.uk/government/organisations/uk-space-agency
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZXdAOLQvEtNZ7GcdZQSUrAAAAA4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZXdAOLQvEtNZ7GcdZQSUrAAAAA4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZXdAOLQvEtNZ7GcdZQSUrAAAAA4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZXdAOLQvEtNZ7GcdZQSUrAAAAA4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2023/11/29/ntt_amazon_kuiper/
[8] https://www.theregister.com/2023/11/24/eutelsat_oneweb_india/
[9] https://www.theregister.com/2023/11/10/amazon_project_kuiper_thrusters/
[10] https://www.theregister.com/2023/11/03/starlink_breakeven_claims/
[11] https://www.theregister.com/2023/09/22/esa_wins_iris2_satellite_contract/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZXdAOLQvEtNZ7GcdZQSUrAAAAA4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
Overseas
It's not saying if subcontracting overseas is permitted. Many of these programmes have a clause that the funding is only available to spend in the UK, unless there is a good reason it can't be.
So let's say you get 45% funding, but you have to buy services, labour in the UK. Now if you are lucky to find a company that actually makes parts that you need, chances are it will be of poor quality and magnitude more expensive than if you got it from say China.
In that case, that funding is pointless.
The reason that it is cheaper (and better) to buy overseas is typically not a qualifying good reason.
The good old:
"If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it."
We already reached the end.
There are no real incentives for small business to do anything in the UK.
Re: Overseas
Are you a professional miserabilist?
The UK space sector trade association reports that the sector has turnover of £17.5bn, employees over 48,000 direct employees. Exactly the high value jobs the country needs more of and that I'd have thought readers of this site would celebrate. Admittedly from those figures we can see the government funding is inconsequential unless unfeasibly well targeted.
Re: Overseas
Sure it's possible to pull a massive turnover being just a middleman and engineering salaries approaching third world levels, may certainly be a pull factor.
I am yet to see these so called "high value jobs". If you go to any space sector job board, you will see they are even too embarrassed to show how much they pay.
If you even find that middling £150k position, you will feel the tax man boot on your neck, while not receiving much in exchange for paying small fortune to the inept government coffers.
Re: Overseas
The UK space sector trade association reports that the sector has turnover of £17.5bn
How much of that is Sky TV?
Re: Overseas
It is one-off, highly specialised parts made by highly skilled individuals, the UK is very competitive at that. And that is the sort of thing you need for a satellite.
China is good at making millions of the same thing, but we don't need millions of them.
Re: Overseas
It is one-off, highly specialised parts made by highly skilled individuals, the UK is very competitive at that. And that is the sort of thing you need for a satellite.
Those specialists have mastered the art of hiding.
That said a system where you have to craft a highly specialised and expensive one off parts, where there is no way to check if they actually exist (you can't send an inspector to space), must be a right gravy train.
Imagine you apply to fund building a Fluxatron. A device designed to aid beam forming of radio waves. There is only one man capable of building it who is living at his aluminium covered tent on one of Welsh roundabouts (and he changes location every other week, so that Russian cyclists can't track him). For a hefty price of £500k he builds the said Fluxatron to such a level of craftsmanship, that it is indistinguishable from a One Pound coin, which can tacked onto the Bell Endometre Beam Scope by simply using a Blu-tack.
Oh it didn't work? Well, we got to build one more then.
China is good at making millions of the same thing, but we don't need millions of them.
Yes, because we don't have meaningful manufacturing industries, so any business looking to make a part necessary for their product, don't even look at domestic suppliers.
That said, even if you need a one off. You can make 10 in China for lower price and better quality and likely arriving next week made to exact specs no questions asked.
Dumb questions...
1) Where's OneWeb in all this?
2) Why not just do a deal with Starlink?
3) Why not just buy this off Amazon?
4) Is this just HMG trying to get secure MoD comms on the cheap?
5) Whatever happened to the BT/Starlink huddle?
6) Why not just use fibre? Spain fibred up its whole country in months and it's much bigger.
HMG could even pick one solution from the above AND fiddle about with garden shed budget projects to come up with new shit.
Re: Dumb questions...
2) Why not just do a deal with Starlink?
Because Musk is a cat short of a Bond villain?
6) Why not just use fibre? Spain fibred up its whole country in months and it's much bigger.
That would be sensible and ultimately much better, but it means spending real cash, and not with Openreach who seem to take all of the rural subsidies going and deliver very little compared to the alt-net companies.
C-LEO
I hope they repurpose some of the original LEO code. Cake deliveries by satellite