Europe's Big Four Telcos Sign LOI for Joint 2GHz Satellite Spectrum Bid

Deutsche Telekom, Orange, Telefónica and Vodafone have signed a letter of intent to explore a joint bid for European mobile satellite services (MSS) spectrum that is due to be allocated next year, confirming a Bloomberg report from last month.

The four operators want the 2GHz spectrum, prized for direct-to-device (D2D) services, to build a homegrown alternative to Starlink and other deep-pocketed rivals in space. Existing licences expire in May 2027, after which the band becomes available. EchoStar — soon to transfer its rights to SpaceX — and Viasat each currently hold 2x15MHz blocks.

Under the plan, the group would provide wholesale D2D access to all mobile network operators on an "open and non-discriminatory" model. The carriers expect to build ground network infrastructure and establish what they called "critical coordination and monitoring functions in Europe". One thing they will not do: invest in their own satellite constellation.

For the satellites, the group needs a partner. A partnership between the four carriers and a satellite operator would "combine European governance and market access", according to the joint statement.

The operators said their ambition is 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".

What does this change for the satellite market?

The initiative echoes the D2D satellite joint venture launched in the US between AT&T, T-Mobile and Verizon. But sovereignty rhetoric masks hard commercial calculation, according to one analyst.

"Behind the sovereignty dressing here is a very commercial concern. Europe's operators want to avoid becoming effectively MVNOs for satellite coverage, selling somebody else's service on somebody else's terms. Starlink's push into the US mobile market makes that concern harder to ignore and has launched MNOs into a defensive posture. Securing MSS spectrum would give them a stronger hand in negotiations," said Luke Kehoe, lead industry analyst at Ookla.

Kehoe added that the sovereignty claim will also be tested in the satellite contract itself. "European spectrum rights and ground infrastructure only go so far when a separate partner controls the constellation. And independent MVNOs and their customers need to benefit on fair terms too."

The operators stressed the letter of intent only explores cooperation options. Existing satellite relationships remain in place:

• Deutsche Telekom offers Starlink broadband for businesses and plans to launch Starlink Mobile's D2D service in 2028.
• Telefónica's UK operator Virgin Media O2 already provides D2D service via Starlink.
• Orange has teamed with AST SpaceMobile, alongside the US company's joint venture with Vodafone, Satellite Connect Europe.

Satellite Connect Europe welcomed the news, posting on LinkedIn that it looks forward "to supporting operators across Europe as this important initiative develops".

How will the spectrum be divided?

The European Commission announced plans earlier this year for allocating the frequencies. The proposal would reserve most of the band for EU-based operators and split it into three parts:

• One-third reserved for government use, integrating with the EU's IRIS2 project (Infrastructure for Resilience, Interconnectivity and Security by Satellite).
• Two-thirds for commercial use, including D2D, IoT and in-flight services.
• Within the commercial portion, one-third reserved for European new entrants and the final third open to EU and non-EU operators alike.

The upshot: Amazon Leo, Starlink and AST SpaceMobile would be limited to a 10MHz block, competing with European operators for those rights.

The proposal has not pleased Washington. FCC Chairman Brendan Carr has said the regulator would impose similar limits on European satellite operators under its longstanding "reciprocity and nondiscrimination" approach. US Ambassador to the EU Andrew Puzder went further, telling the Financial Times that European companies should worry about retaliation that would be "devastating" for them given the size of the US market.

The telco initiative lands amid high tensions over SpaceX satellite communications, following disputes about last week's disruption to Starshield services in Ukraine. Starshield is the military-grade version of Starlink, not a consumer service, but the controversy illustrates Europe's fear of depending on non-European technology it does not control.

The operators said the move supports EC technical and legal criteria set to "strengthen Europe's sovereignty, security and resilience in critical connectivity infrastructure". They added: "[The initiative] will ensure responsible European governance of key space infrastructure." With spectrum allocation due next year and licences expiring in May 2027, the four carriers must now find a satellite partner and convert a letter of intent into a binding bid.