Four Major European Operators Plan D2D Satellite Venture

The largest mobile network operators in Europe have entered into formal discussions regarding the formation of a consortium to bid for spectrum suited for satellite services. This strategic alliance, which includes Deutsche Telekom, Orange, Vodafone, and Telefónica, aims to coordinate the launch of a unified direct-to-device (D2D) service across the continent.

This move is largely designed to secure airwaves that the European Union has indicated will be reserved for European entities. The initiative serves to bolster regional digital sovereignty and establish a competitive alternative to Elon Musk’s SpaceX, which currently leads the global D2D sector via its Starlink constellation. The EU has outlined plans to implement specific rules for the distribution of the 2GHz spectrum, reserving one-third of the allocation for local companies—a regulatory approach that has already drawn criticism from SpaceX.

According to the EU’s current proposal, any satellite operator securing a significant portion of this spectrum must be majority-controlled by a European business. This requirement presents a specific challenge for Vodafone, which is already heavily involved in a satellite joint venture with U.S.-based AST SpaceMobile to offer D2D services. Currently, that venture operates under a 50-50 ownership structure, which would likely need to be adjusted to meet the EU's criteria for securing the reserved spectrum.

The existing licenses for this spectrum are set to expire in 2027. In addition to the commercial allocation, the EU intends to reserve another third of the spectrum for the IRIS2 European satellite network, a high-profile project led by the European Commission and the European Space Agency. The IRIS2 constellation is being developed by a separate consortium consisting of Hispasat, SES, and Eutelsat, with a primary focus on broadband services and more limited D2D capabilities.