Four mobile carriers representing Europe are pushing joint cooperation plans to provide a service that directly links satellites and mobile phones. As Starlink, the satellite internet service of U.S. SpaceX led by Elon Musk, expands its influence in the market, the European Union (EU) aims to jointly secure 2 GHz satellite spectrum to be allocated as the share for operators within the bloc.
On the 7th (local time), according to Bloomberg and Reuters, Deutsche Telekom (Germany), Orange (France), Vodafone Group (United Kingdom), and Telefonica (Spain) are in early-stage talks to form a consortium to jointly participate in the EU satellite spectrum auction.
What they are eyeing is the "D2D (Direct-to-Device)" market that directly links satellites and mobile phones. D2D is a method by which communications satellites exchange signals directly with mobile phones. It enables communication in mountainous or maritime areas not covered by mobile base stations and can be used when terrestrial networks are cut off by disasters.
The European Commission sees the 2 GHz band as suitable for D2D services. The current authorization to use 2 GHz satellite spectrum is set to expire in May 2027. The EU plans to select new operators thereafter so they can provide satellite mobile services across Europe. Selecting operators at the EU level will also reduce regulatory burdens from having to obtain separate approvals in each member state. The four European carriers plan to offer D2D services if they secure the spectrum.
However, nothing has been finalized, including whether to form a consortium or actually participate in the bidding. According to Bloomberg and Reuters, Vodafone, Orange, and Telefonica declined to answer related inquiries. Deutsche Telekom also did not offer a clear position.
Behind the European carriers' push to join forces is the expanding influence of Starlink. SpaceX is expanding its "D2C (Direct-to-Cell)" business, which directly links existing smartphones and satellites. Instead of separate satellite phones or dedicated antennas, it uses existing LTE smartphones as is. As long as the sky is visible, satellites can connect without changing the phone's hardware or firmware or installing a separate application (app).
Starlink has also teamed up with mobile carriers in various countries, including T-Mobile in the United States, KDDI in Japan, Rogers in Canada, and Optus and Telstra in Australia, to expand related services. According to SpaceX, as of the end of March, Starlink's mobile service provided monthly service to 7.4 million devices in about 30 countries.
In particular, the EU is wary of growing dependence on U.S. companies in the satellite communications market. In May, the EU proposed newly selecting, at the EU level, operators that will use 2 GHz satellite spectrum after 2027. According to Bloomberg, among the spectrum to be allocated for commercial use, a portion is being set aside for in-bloc operators in which European corporations hold a majority equity stake. The four European mobile carriers, including Deutsche Telekom, are reportedly reviewing a plan to jointly secure this share.
This also aligns with the EU's independent satellite communications network strategy, IRIS². IRIS² is a project to deploy a total of 290 satellites in low and medium Earth orbits to provide communications services to European governments and corporations. It is seen as an effort to reduce reliance on U.S. big tech companies like Starlink and to secure Europe's independent satellite communications capabilities and "communications sovereignty." The European Commission awarded a 12-year contract for the build-out and operation of IRIS² to the SpaceRISE consortium, which includes European satellite operators SES, Eutelsat, and HispaSat.
Of the frequencies tied to IRIS², two-thirds will be allocated for commercial use, to be split evenly between EU operators and non-EU operators. If the four carriers, including Deutsche Telekom, form a consortium, they plan to bid for the portion allocated to EU operators.
Industry views largely hold that the competition over this spectrum allocation goes beyond the satellite communications industry and touches on the EU's technology sovereignty. The European Commission designates the 2 GHz satellite spectrum as a strategic asset important not only for commercial innovation but also for security and defense. If the consortium plans of the four European carriers materialize, competition over the satellite-to-mobile market, where Starlink has taken the lead, is expected to intensify further.