Europe’s top carriers eye joint satellite spectrum bid

Deutsche Telekom, Orange ↘ 2.93%, Telefónica ↗ 3.27% and Vodafone ↘ 1.49% signed a letter of intent on Monday, October 19, to explore a joint bid for future Mobile Satellite Services (MSS) spectrum in Europe. They also plan to offer direct-to-device service, which connects ordinary phones straight to satellites, according to their joint press release. The four operators will not invest in their own satellite constellation. Instead, a satellite partner "still to be selected" will supply the satellites, while the carriers build the ground network and handle coordination and monitoring inside Europe.bloomberg.com

Bloomberg presented the consortium as an effort to hold off competition from SpaceX's Starlink. It said the group is going after a share of the airwaves the European Union has proposed reserving for a European operator.247wallst.com

Sovereignty and open access

The carriers said the plan supports the European Commission's goal of strengthening Europe's "sovereignty, security and resilience in critical connectivity infrastructure." They also said it would give every mobile network operator "open and non-discriminatory access" to direct-to-device services, the release said. Reuters Thomson Reuters Corporation ↘ 0.72% reported that the companies plan to keep the main ground infrastructure and control functions in Europe.reuters.com+1

The airwaves in question are in the 2 GHz band. Those licenses are currently held by EchoStar ↗ 0.97% and Viasat ↗ 2.48% and expire in May 2027, TelecomTV reported. Under the Commission's plan, one-third of the spectrum would go to government use, one-third to new commercial entrants based in the EU, and one-third to any operator. Because the Commission has proposed extending the current rights by two years, the frequencies are expected to become available from mid-2029, according to heise.heise.de+1

Existing partnerships stay

The carriers said the letter "does not replace existing satellite partnerships." That leaves some of them working with rival providers. Deutsche Telekom plans to use Starlink to cover dead zones in Germany from around 2028, Vodafone is building a European network with AST SpaceMobile ↗ 2.98%, and O2 Telefónica has partnered with OQ Technology, heise reported. The Verge described the effort as a direct-to-device program that leaves Starlink out.theverge.com+1

AST SpaceMobile shares rise

AST SpaceMobile shares rose about 4% in early trading on Monday, more than other space stocks, after the company said its carrier partners had signed the letter, 24/7 Wall St. reported. The company runs European ground infrastructure through its joint venture, Satellite Connect Europe. However, the letter includes no financial terms and is not a commercial agreement.247wallst.com

The competition for a partner is just starting. TelecomTV expects satellite companies to promote their European coverage and "sovereign credentials" in the coming months as they compete to work with the carriers.telecomtv.com