London backs £12m space mission

The rocket launch is set for 2011

A satellite handling mobile phone calls in London has been backed by the London Development Agency (LDA).

The technology will reduce the need for unpopular masts and could also be used to track motorists, the LDA said.

The agency voted to provide £12m in grants to London-based communications firm Inmarsat to develop the project.

The firm has now secured the necessary government support to place a bid with the European Space Agency to launch the satellite in French Guiana in 2011.

'Questionable benefit'

Equivalent funding is also coming from the South East of England Development Agency and the East of England Development Agency to support the bid.

"The firm requires government funding of up to 50m euros before its bid can be considered by the European Space Agency (Esa)," a LDA spokesman said.

To secure a place on the Esa rocket, Inmarsat will have to enter a bidding process against other firms.

Bob Blackman, of the London Assembly Conservatives, said the project appeared to be of questionable benefit for Londoners.

"This is an utter waste of taxpayers' money," he said.