European Telecom Giants Consider Satellite-to-Mobile Consortium

According to Bloomberg, Deutsche Telekom, Orange, Vodafone, and Telefonica have entered preliminary discussions about forming a consortium that might compete for European satellite spectrum and provide direct-to-mobile connectivity, potentially establishing a domestically based challenger to Elon Musk's Starlink.

The four carriers are weighing a collaborative offer for a portion of the 2 GHz band, which the European Union has suggested setting aside for a European operator as part of its efforts to enhance the bloc's independent satellite infrastructure, sources with knowledge of the discussions said.

No definitive choice has been made regarding either the consortium's formation or a potential bid.

The initiative coincides with the EU's preparation of fresh regulations regarding the use of the 2 GHz frequency range for mobile satellite services.

Under the envisioned arrangement, one-third of the spectrum would be set aside for a local European operator, another third for sovereign communications applications under the EU's IRIS² initiative, and the final third open to international competition. Current licenses for the band are scheduled to lapse in 2027.

A potential consortium would offer Europe's major mobile operators an avenue to confront Starlink more forcefully in a market where the American firm already holds a significant footprint. Starlink delivers satellite broadband throughout large parts of Europe and maintains partnerships with various regional telecom operators to advance direct-to-device service capabilities.

Deutsche Telekom, on its own, has established an agreement with Starlink to introduce direct-to-device connectivity across a number of European markets, targeting a roll-out beginning in 2028. This offering aims to allow compatible handsets to link straight to satellites when conventional mobile network coverage is not accessible.

Vodafone additionally operates an equally owned joint venture with AST SpaceMobile, a U.S. firm specializing in direct-to-handset satellite communications. As per the EU proposal presently under review, Vodafone would be required to restructure that ownership arrangement to become eligible for spectrum designated for a European-controlled entity, according to Bloomberg.

The EU's wider satellite agenda revolves around IRIS², a forthcoming multi-orbit constellation spearheaded by SES, Eutelsat, and Hispasat. The network is slated to become operational in 2029, concentrating first on broadband services with restricted direct-to-mobile functionality.

The drive mirrors Brussels' overarching ambition to establish strategic communication infrastructure within Europe and diminish dependence on overseas technology suppliers.