UK’s Investment in Starlink Rival Costs Taxpayer £374m

By the Editorial Team · Sunday, July 19, 2026

The UK government’s £517 million investment in the satellite company Eutelsat OneWeb has lost about two-thirds of its value, now estimated at £175 million, despite additional funding and efforts to support the firm’s growth. This decline highlights the challenges OneWeb faces competing against rivals like Starlink, as well as ongoing operational setbacks, though the company continues to secure contracts and maintain strategic importance for the UK’s space industry.

The United Kingdom has recorded a significant financial loss following its investment in the satellite communications company Eutelsat OneWeb, a venture intended to rival Elon Musk’s Starlink. Government accounts released recently show that the UK’s £517 million stake in the company has diminished in value by approximately two-thirds, with the current valuation standing at £175 million.

The investment, initially approved in 2020 under Prime Minister Boris Johnson’s administration, aimed to rescue OneWeb from bankruptcy and maintain a strategic foothold in the rapidly expanding satellite internet sector. Dominic Cummings, then a senior government adviser, was a prominent advocate for the government’s involvement. A further £143 million was injected in the past year to support the company’s operations, but these efforts have not reversed the downward valuation trend.

OneWeb, based in the UK, was merged with the French state-backed satellite operator Eutelsat in 2022. Since the merger, the combined entity’s shares have declined by 38 percent over the past year, reflecting challenges faced in the traditional satellite business and substantial financial losses. While OneWeb’s network—comprising hundreds of low-earth orbit internet satellites—has continued to grow, it remains significantly smaller than Starlink, which is owned by SpaceX. It also faces mounting competition from new entrants such as Amazon’s Kuiper satellite system.

The company’s progress has been hindered by disruptions in its satellite launch program. Originally dependent on Russian rockets, OneWeb lost a batch of satellites when the Russian government seized them following the invasion of Ukraine in 2022. This forced the company to turn to SpaceX’s launch services, indirectly relying on a competitor in the satellite broadband market.

Despite these setbacks, OneWeb has secured several contracts, including an agreement to provide satellite internet service to UK embassies worldwide and commercial partnerships with various airlines. At one point last year, shares in Eutelsat surged amid reports the company might replace Starlink's services in Ukraine due to concerns over waning U.S. military support. However, Ukrainian forces continue to rely on Starlink for critical communications.

A spokesperson for the UK government emphasized the strategic importance of satellite communications, stating that the investment in Eutelsat supports a growing sector of the UK space industry, helps safeguard more than 400 skilled jobs, and strengthens the country's position in low-earth orbit connectivity.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.