European Telcos Plan Joint Bid for Satellite Spectrum
Four major European mobile network operators have signed a letter of intent to explore a joint bid for Mobile Satellite Services spectrum, aiming to provide wholesale direct-to-device connectivity across Europe.
Deutsche Telekom, Orange, Telefónica, and Vodafone intend to bid together for future Mobile Satellite Services (MSS) spectrum allocation in Europe. The initiative aims to create a wholesale platform for direct-to-device (D2D) satellite services, which connect standard smartphones to satellites, offering open access to all mobile network operators on the continent.
The collaboration supports the European Commission's broader goals of strengthening sovereignty and security in critical connectivity infrastructure. The operators plan to establish key ground network infrastructure and critical coordination functions within Europe. They will not, however, invest directly in building their own satellite constellation, opting instead to partner with a yet-to-be-selected satellite operator.
A Bid for Spectrum and Sovereignty
The joint bid targets spectrum in the 2 GHz band, which is considered ideal for D2D services. The European Commission has proposed a new allocation process that would reserve significant portions of this spectrum for European operators. According to the proposal, one-third would be dedicated to government use for critical communications, security, and military applications, provided by an EU operator. Another third would be reserved exclusively for EU operators for commercial uses like D2D. The final third would be open to any satellite operator, regardless of origin.
The four-company partnership suggests it may focus on both the security and commercial portions of the spectrum. The initiative's stated ambition is to meet demand for universal coverage in underserved areas, strengthen public network resilience, protect critical communications, and support the development of a European satellite constellation.
The Ground Game and the Space Partner
The telcos will build the terrestrial infrastructure required for the service while leaving the space segment to a specialist partner. This approach is seen as a way to extend their capabilities while managing capital expenditure. The partnership would combine the operators' European market access and governance with the satellite partner's technology and deployment expertise.
Analyst Luke Kehoe notes that behind the sovereignty rhetoric lies a commercial motive. "Europe's operators want to avoid becoming effectively MVNOs for satellite coverage, selling somebody else’s service on somebody else’s terms," he said. Securing their own spectrum rights would give them a stronger negotiating position.
Navigating Existing Partnerships and Market Doubts
The letter of intent does not replace the operators' existing individual satellite partnerships. For instance, Deutsche Telekom and Telefónica already have partnerships with SpaceX's Starlink for some services. Vodafone is involved in a joint venture with AST SpaceMobile, and Orange has also teamed with AST.
There are questions about the size of the D2D market in Europe, where over 98% of the region is already covered by terrestrial networks. A Deutsche Telekom spokesperson framed satellite as a complementary technology, stating it can extend coverage but cannot replace the capacity, stability, and reliability of terrestrial networks.
The success of the venture will hinge on execution, device compatibility, and consumer pricing. The operators' combined scale-Deutsche Telekom alone serves over 273 million mobile customers-could accelerate deployment and enable efficient spectrum use. The final structure of the partnership and the choice of satellite operator remain open, with the spectrum allocation expected next year.
