The government has successfully bid for a stake in OneWeb, a company that aimed to build a constellation of satellites to deliver global broadband coverage.

OneWeb declared bankruptcy in March and the UK sees it as an opportunity to replace its access to the European Union’s Galileo satellite navigation system. Galileo was built with UK technology, but the UK was stripped of access for strategic reasons, as a reaction to its decision to leave the bloc.

The $1 billion bid was made in 50/50 partnership with Bharti Enterprises, an Indian conglomerate and will enable OneWeb to complete construction of the network.

A spokesperson for the government added, “With a sovereign global satellite system, the UK will further develop its advanced manufacturing base, making the most of its highly skilled workforce as the hardware is further developed and equipment and services are deployed to make the most of this unique capability.”

The deal is however subject to US court approval and regulatory clearances and is expected to close before the end of the year.

The UK space sector is an economic success story, growing by over 60% since 2010. The sector, which already supports £300 billion of UK economic activity through the use of satellite services, is expected to grow further as new commercial opportunities are unlocked by this agreement.