Satellite broadband will allow the UK to "properly address" the challenge of providing internet services to rural communities.
This is according to minister for universities and science and co-chair of the Space Leadership Council David Willetts, who discussed a new report on the matter from the Satellite Broadband Steering Group.
The document explained how demand for satellite broadband is likely to increase in the UK, as well as recommendations on how the solution can help those living in remote areas.
Mr Willetts stated that, thanks to the new technology, the government can properly begin work on providing services to homes and businesses that currently have no internet access.
"The UK's space telecommunications sector are essential to activities across many sectors of the UK economy," he added.
Head of marketing at Avanti Simon Barrett recently told the BBC that the Hylas 1 satellite launched at the end of last year is improving internet speeds, with around 3,500 people now subscribing to a service through the equipment.