Inmarsat Share News (ISAT)

(Sharecast News) - The UK government said on Wednesday it is launching a study to design the new navigation satellite programme that will rival the EU's Galileo post-Brexit at a cost of around £92m.Prime Minister Theresa May had already warned EU leaders of the new satellite and allocated the money on Tuesday. She said the UK did want to remain involved in the EU's Galileo satellite programme, but would not accept being "shut out from security discussions and contracts" as the EU proposed.The UK has already contributed £1.2bn to the development of Galileo, yet the EU is ready to exclude Britain after it leaves the bloc. Ministers have suggested that the UK could try to claw back the money it has already contributed, although it is likely that an amicable divorce is better in the long run."So unless we receive assurance that we can collaborate on a close basis in the future - like the close security partners we aspire to be - we are clear that we will withdraw UK support for Galileo and pursue our own sovereign satellite system. And this is not an idle threat to achieve our negotiating objectives," said May.According to The Independent, a recent study commissioned by the government estimated that sustained disruption to satellite navigation lasting five days would cost the UK economy more than £5.0bn.The satellite will receive its funding from the £3.0bn Brexit readiness fund included in last year's budget and will be led by the UK Space Agency with support from the Ministry of Defence."This will ensure the UK's safety post-Brexit, using the expertise of our world-leading space and security sectors to do so," May said. "Today's investment marks an exciting time for the sector, and for the UK, and I can't wait to see what we can achieve."