Deutsche Telekom (TG:DTE), Orange (EU:ORA), Vodafone (LSE:VOD) and Telefonica (TG:TNE5) are in preliminary discussions about forming a consortium that could bid for European satellite spectrum and provide direct-to-device mobile services, according to Bloomberg.
The four telecommunications groups are considering a joint bid for part of the 2 GHz spectrum that the European Union has proposed reserving for a European operator, according to people familiar with the matter.
No final decision has been made on either the formation of the consortium or the submission of a bid.
EU Plans New Framework for 2 GHz Satellite Spectrum
The discussions come as the EU prepares new rules governing access to the 2 GHz spectrum used for mobile satellite services.
Under the proposal, one-third of the available spectrum would be reserved for a European operator, while another third would be allocated to sovereign communications services through the EU’s IRIS² programme. International companies would be eligible to compete for the remaining third.
Existing spectrum licences are due to expire in 2027.
A consortium involving Deutsche Telekom, Orange, Vodafone and Telefonica could provide the operators with a jointly controlled platform for developing direct-to-device satellite services in Europe.
Operators Already Have Satellite Partnerships
Several of the companies involved in the discussions already have relationships with satellite communications providers.
Deutsche Telekom has an agreement with Starlink to introduce direct-to-device connectivity in several European markets, with a launch planned for 2028. The proposed service would allow compatible smartphones to connect directly to satellites when terrestrial mobile coverage is unavailable.
Vodafone has a 50/50 joint venture with U.S.-based AST SpaceMobile (NASDAQ:ASTS), which also develops direct satellite connectivity for mobile devices.
According to Bloomberg, Vodafone would need to change the ownership structure of that venture to qualify for spectrum reserved under the EU proposal for an operator controlled by European entities.
Starlink currently provides satellite broadband across much of Europe and has agreements with several European telecommunications companies covering the development of direct-to-device services.
IRIS² Scheduled to Enter Service in 2029
The EU’s wider satellite communications strategy includes IRIS², a planned multi-orbit constellation led by SES, Eutelsat and Hispasat.
The system is expected to enter service in 2029, initially focusing on broadband connectivity while providing limited direct-to-device capabilities.
The proposed spectrum framework forms part of the EU’s efforts to develop communications infrastructure controlled within Europe and reduce reliance on non-European technology providers.
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