A joint bid for European satellite spectrum

Deutsche Telekom, Vodafone, Telefónica and Orange have signed a letter of intent to bid together for radio frequencies used for mobile satellite services in Europe. The companies announced the agreement on Monday, 19 October. The frequencies are expected to become free in 2029 and are currently used for purposes such as in-flight internet connections. Telefónica chairman Marc Murtra has repeatedly argued that Europe needs more autonomy in this area. The European Commission is preparing to reallocate the spectrum and has reserved part of it for European providers.

Direct-to-device service for phones

The group wants to offer direct-to-device (D2D) services, which connect a smartphone straight to a satellite wherever no mobile network reaches. Most smartphones do not yet include that function, but it is expected to reach the mass market in the coming years. The four operators also plan to open the technology to all mobile network operators, so that rivals can sell the same service to their own customers. The model is described as offering open and non-discriminatory access, designed to encourage competition and reduce fragmentation in the market. The partners say their scale, network capabilities and operating experience could speed up deployment.

Where the coverage gaps are

The target areas are so-called white spots, places where the outdated 2G network is no longer available. Figures from the Bundesnetzagentur show that in June these areas made up 1.2% of Germany's territory for Deutsche Telekom, 1.7% for Vodafone and 1.6% for O2 Telefónica. The partners say they want universal coverage in underserved areas, stronger resilience for public networks and protection for critical communications. Rural areas that are hard to reach and emergency communications for public administrations are among the cases the alliance hopes to serve, El Mundo notes.

Deutsche Telekom1.2%

Vodafone1.7%

O2 Telefónica1.6%

Deutsche Telekom

1.2 %

Vodafone

1.7 %

O2 Telefónica

1.6 %

Data from the article text

Who would build the network

The four companies would deploy key terrestrial infrastructure in Europe, along with coordination and supervision functions, but they would not put satellites into orbit themselves. A satellite partner, still to be chosen, would supply the constellation. El Mundo reports that Ast SpaceMobile is the most likely candidate, pointing to its European subsidiary and its alliances with Vodafone and Telefónica. It is unclear who the satellite operator will be, and SpaceX is considered unlikely because the project is about European sovereignty. The joint statement describes the initiative in these terms:

“The initiative supports the European Commission's goal of strengthening Europe's sovereignty, security and resilience in critical connectivity infrastructure.”

Starlink and the US reaction

The alliance is framed as a counterweight to Starlink, the internet service of Elon Musk's SpaceX. Starlink is a SpaceX subsidiary and by far the world's largest satellite operator, and it has acquired US radio frequencies worth several billion dollars to compete with American mobile carriers. El Mundo links a US licence package won by Starlink in October to a multibillion sell-off in telecom shares worldwide. According to a media report, the US government has threatened 'devastating' retaliation if market access for US companies such as Starlink is restricted in Europe.