Europe’s top carriers weigh satellite-to-mobile consortium: Bloomberg

Four major European mobile carriers—Deutsche Telekom, Orange, Vodafone, and Telefonica—are reportedly considering a consortium to participate in a possible European satellite spectrum bid. The proposed consortium aims to vie for a portion of the 2 GHz spectrum that the European Union has earmarked for a locally-owned operator, as part of efforts to bolster the bloc's own satellite capabilities.

This consortium would allow Europe's largest mobile operators to directly compete with Elon Musk's Starlink, a U.S.-based company that currently enjoys a strong presence in European satellite broadband markets. Deutsche Telekom and Vodafone already have agreements with Starlink to introduce direct-to-device services in various European regions, with launch plans set for 2028.

Under the EU's proposed guidelines, one-third of the spectrum would be reserved exclusively for a locally-run operator, while another third would go to sovereign communications services under the IRIS² program. The final third would be open to international companies, regardless of their location.

Deutsche Telekom and Vodafone would need to modify their current ownership structures to meet the criteria for gaining access to the spectrum reserved for a European-controlled operator. The EU's satellite strategy, known as IRIS², is set to involve a multi-orbit constellation spearheaded by companies like SES, Eutelsat, and Hispasat. The system is scheduled to launch in 2029, initially concentrating on broadband applications with somewhat limited direct-to-mobile capabilities.

The initiative signals Brussels' ongoing commitment to bolstering the EU's strategic communications infrastructure and diminishing dependence on foreign technology vendors. The spectrum licenses currently in use are slated to expire in 2027, prompting the operators to explore this potential consortium as they strategize for the future.