UK’s £8.35B Skynet 6 satellite upgrade gets red delivery rating

The UK’s £8.35 billion Skynet 6 military satellite communications upgrade has been rated red by the National Infrastructure and Service Transformation Authority, putting formal pressure on one of the Ministry of Defence’s largest space programs. The rating means NISTA believes delivery is not achievable in the program’s current form without significant changes, a serious signal for a system intended to support UK military communications into the 2040s.

NISTA, a joint unit reporting to the Treasury and Cabinet Office, downgraded Skynet 6 from amber last year. The authority said the program has been hit by recruitment and resourcing constraints across the department, creating workforce shortages. It also cited “sub-par supplier performance” as a continuing factor delaying delivery of the first Skynet 6 satellite.

A red confidence rating does not formally mean the program will be cancelled or that failure is certain. It does mean the government’s own projects watchdog sees major issues in areas such as scope, timing, cost, quality or expected benefits that are not currently under control. Programs with that rating can be rescoped, rebaselined or reassessed.

A delayed first satellite

Skynet 6 is the latest generation of a UK military satellite communications capability that dates back to the 1960s. Its first satellite, Skynet 6A, was initially expected to launch in 2025. It is now scheduled to fly on a SpaceX rocket in 2027. Airbus is building the spacecraft.

The delay is material because Skynet 6 is supposed to provide secure satellite communications for UK forces through 2041 and beyond. The broader program also includes new ground systems and user terminals, which the MoD has said are intended to give UK war fighters modern communications technology worldwide.

Another component, Skynet Enduring Capability, is expected to provide new space-based technology from 2028 onward. The timetable now puts the program’s early launch, service delivery and longer-term capability upgrades under tighter scrutiny.

Babcock contract sits inside the wider program

Skynet 6 also includes Service Delivery Wrap, a £400 million contract awarded to Babcock in 2023. That work covers operation of the UK’s military satellite constellation and ground stations. NISTA’s rating does not break down responsibility across each contract, but its reference to supplier performance will draw attention across the industrial team behind the program.

The MoD told Parliament in 2022 that the estimated cost of all elements of Skynet 6 across its 26-year lifecycle had increased from £7.1 billion to about £8.35 billion. The department attributed that rise to changes in required technology and functionality, work to address emerging risks, and higher prices across the space sector.

For the defence technology market, the red rating is a reminder that sovereign space communications programs carry integration risk even when the prime contractors are established suppliers. The UK is trying to renew an essential military communications capability while buying launch, satellite manufacturing, ground operations and user equipment across a long program cycle. NISTA’s assessment says the current plan is not yet convincing.

This story draws on original reporting from The Register.