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Satellite broadband backed by UK Space Agency
The organisation said satellite technology can help to bring broadband to remote locations.
The body's Space Leadership Council (SLC) has published a report highlighting the key impact that satellite broadband operators can have on improving current levels of coverage, both at home and abroad.
As well as providing an internet connection to homes and businesses that are beyond the reach of existing fixed and mobile broadband networks, the technology can help the UK compete more effectively in overseas markets, the study claimed.
The report was conducted by the Satellite Broadband Steering Group (SBSG), which was established last year and includes a team drawn from numerous major telecoms firms and organisations, such as BT, Ofcom and TalkTalk.
According to the authors, early services that relied on Ku-band satellites were typically seen as "slow and expensive", but a new generation of equipment that uses Ka-band spectrum is around 20 to 30 times more efficient at delivering broadband.
David Willetts, co-chair of the SLC and minister for universities and science, said the space telecoms sector is "essential" to numerous sectors of the country's economy.
"The launch of 'next-generation' satellite broadband services by companies such as Avanti means we can now properly address the challenge of universal broadband access for our most remote communities," he added.
Despite the positive message, chairman of the SBSG Lowry Stanage admitted: "Ultimately the market will decide how successful satellite services are in the UK and overseas."
Avanti Communications' Hylas-1 satellite entered orbit last November and is now providing broadband services in the UK and across Europe.
Another operator, Eutelsat, launched its KaSat satellite on Boxing Day and has been offering capacity in the UK since the end of last month, while North American service ViaSat has secured around half a million subscribers in the US.