Europe's Big Four MNOs Plan Joint Bid for 2 GHz Satellite Spectrum

Vodafone, Deutsche Telekom, Telefónica and Orange have signed a letter of intent to bid jointly for a third of Europe's harmonised 2 GHz MSS band, the spectrum widely regarded as decisive for satellite direct-to-device (D2D) services on the continent.

The band in question spans 1980–2010 MHz and 2170–2200 MHz. The four operators, collectively Europe's largest mobile network operators, said they will "explore a potential joint bid" for one of three blocks the European Commission plans to award.

The Commission announced in May that it would allocate the band through a beauty contest "with a minor financial element". The structure splits the spectrum three ways: one third for secure governmental use, one third for a European entrant, and one third for an EU- or non-EU-based player. Awards will turn on the quality and innovation of tenders and on whether the proposed use "benefits competition".

What does the consortium actually commit to?

Not a constellation. Vodafone's statement is explicit on this point: the operators' role will be "to establish key network infrastructure as well as critical coordination and monitoring functions in Europe, without investing directly in a satellite constellation".

The operator framed the ambitions broadly. Vodafone said the initiative aims "to meet customer demand for universal coverage in underserved areas, strengthen the resilience of public networks, protect critical communications, and support the development of a European constellation".

Vodafone also moved to reassure its existing partners, stating the letter does not "replace existing satellite partnerships". That caveat matters, because each of the four operators already has satellite arrangements of its own.

The current partnership map looks like this:

• Vodafone holds a joint venture with US satellite operator AST SpaceMobile, called Satellite Connect Europe, based in Luxembourg.
• Orange is partnered with Satellite Connect Europe and has run D2D demonstrations starting in Romania.
• Deutsche Telekom announced earlier this year that it will use Starlink for D2D in 10 European countries by 2028.
• Telefónica has struck deals with startup Sateliot and with Hispasat.

The Luxembourg base of Satellite Connect Europe means the venture could itself theoretically bid for the third of the band reserved for new European entrants.

How does AST SpaceMobile read the move?

AST SpaceMobile welcomed the consortium's confirmation. CCO Wayne Thorsen said the company's role is to "support our partners with the satellite technology, spectrum capabilities and ground infrastructure needed to deliver cellular broadband directly to the phones people already use".

"Together, we are building a third layer of connectivity that expands coverage and strengthens the resilience of Europe's mobile networks," Thorsen said.

The company has not claimed it will be the consortium's partner. It has positioned itself in alignment with the group, which given Vodafone's and Orange's existing ties is a plausible reading. Its larger rival SpaceX has taken no such stance.

Is the sovereignty argument credible?

The Commission's proposal emphasises European sovereignty in the 2 GHz MSS band. Analysts question whether a consortium of ground-based operators delivering no satellites of their own satisfies that goal.

"I'm guessing the operators would like the Commission to read this as a way to maintain sovereignty because the ultimate control over the spectrum would be with the European-based operators," said Richard Haas, a consultant at LS telcom.

"You can see their motivation in that sense, but I think there are a few holes in that plan — how sovereign is it really if the satellite constellation isn't based in Europe?" Haas asked.

The consortium could counter that operators would "have the possibility to switch satellite operators if there are sovereignty concerns", Haas noted. But he added that "it's not obvious why this would be that much more beneficial than going with Satellite Connect Europe".

His verdict is blunt. "It feels like a sort of sovereignty loophole, almost like the consortium will be in between you and the US satellite provider, possibly because this cannot be solved if there is a lack of a European D2D provider," he said.

For practitioners, the distinction matters. A bid that pairs European ground infrastructure with US orbital assets gives operators leverage over their satellite suppliers, but it does not create an independent European D2D capability of the kind the Commission's language implies.

What about SpaceX?

SpaceX is expected to bid for a third of the band in Europe. It has expressed dissatisfaction with the restrictions on foreign companies' access and with how the band has been partitioned. The company has also claimed the Commission's proposal threatens Starlink's services in Ukraine.

The European letter of intent mirrors a US precedent. In October, AT&T, T-Mobile and Verizon jointly opposed a proposal from the US regulator to free up more spectrum for D2D, a change that would have benefited Starlink. The European operators' coalition follows the same defensive logic.

"All of these joint ventures right now need to be read into the context of SpaceX," said Haas. "SpaceX right now is saying, 'we will compete with you'."

He cautions against overestimating the threat. SpaceX's plans are still at "a very immature stage", Haas said. "They could pursue an MVNO agreement, perhaps get that over the line, and then they are not a threat in the same way anymore."

Analyst William Webb takes a similar view, suggesting recent SpaceX developments show "there is a lack of a masterplan".

"Even if there were, what were claimed to be completely new ways of doing cellular, like Rakuten and O-RAN, have not thrived," Webb said.

The letter of intent is non-binding at this stage, and the beauty contest itself has yet to run. With the Commission's award criteria weighted toward innovation and competition rather than price, the four operators now face the task of turning a defensive coalition into a tender that satisfies Brussels' sovereignty ambitions while relying on US satellite partners.