EU Telecom Giants Plot Satellite Spectrum Bid to Rival Starlink

Deutsche Telekom, Orange, Vodafone, and Telefónica are in early discussions to form a consortium to bid for a strategic slice of the 2 GHz mobile satellite services spectrum in Europe. The move is designed to establish a European-controlled alternative to the direct-to-device satellite services currently dominated by SpaceX's Starlink.

The target is a 30 MHz pairing of the 2 GHz band, which is critical for enabling standard smartphones to connect directly to satellites. Current licenses for this spectrum are held by Viasat and EchoStar, but these are set to expire in May 2027. According to the European Commission's proposal, the band would be split into three distinct segments: one reserved for a majority European-controlled company, one for sovereign government services via the IRIS² constellation, and one open to any bidder, including American firms like SpaceX and Amazon.

The Push for Digital Sovereignty

This initiative aligns with a broader European Union strategy to achieve "digital sovereignty" in space. The EU is already investing heavily in its own infrastructure, deploying the IRIS² constellation and proposing the EU Space Act to regulate operators serving European users. By reserving a portion of the spectrum specifically for a European-controlled entity, the Commission aims to prevent a total reliance on non-EU infrastructure for critical connectivity.

Market Leverage and Limitations

Control of this spectrum is a pivotal battle for market power. If the consortium successfully secures the reserved block, it gains the leverage to dictate how satellite-to-mobile services are deployed across the continent, potentially preventing Starlink from becoming a direct competitor to traditional mobile network operators.

However, a significant technical gap remains. While the carriers would own the necessary spectrum, they do not possess their own satellite constellations. This means that even with the licenses in hand, the consortium would likely be forced to lease capacity from American firms such as Starlink or AST SpaceMobile in the short term to actually deliver the service to users.

What to Watch

Industry observers are now watching whether the four carriers can move from early talks to a formal bid. The outcome will determine if Starlink remains a wholesale supplier to European carriers or if it can bypass them to reach consumers directly. The May 2027 expiration of current licenses creates a hard deadline for the EU to finalize these regulatory frameworks and for the consortium to solidify its strategy.