Europe has picked a fight with Starlink, and the weapon of choice is not a lawsuit. It is a spectrum plan.
The European Commission wants to carve up a valuable slice of satellite airwaves so that European companies and governments get first dibs. SpaceX, Elon Musk’s company that runs Starlink, would be left waiting for whatever remains.
The spectrum being divided
The prize is the 2 GHz mobile satellite services band, known in the industry as the MSS band. Only licensed operators can use it, and right now only two hold the keys.
Those two are US firms Viasat and EchoStar. Their licenses for the band are set to expire in May 2027.
The band matters because of direct-to-device connectivity, or D2D. That means a satellite talking straight to an ordinary smartphone, without a ground tower in between.
Under the Commission’s proposal, dated May 27, 2026, the band would be split into three parts:
- One part for government use, through IRIS², the EU’s planned satellite constellation.
- One part for newly established EU-based commercial entrants.
- One part open to all operators, including non-EU players such as Starlink.
Run the math and two-thirds of the band ends up reserved for European operators and government use. Starlink gets to compete for the final third, alongside everyone else.
Telecom giants line up, and Washington pushes back
On October 19, 2026, Deutsche Telekom, Orange, Telefónica and Vodafone said they may pool resources to go after spectrum rights together.
The idea is to offer wholesale D2D services across Europe. The carriers would jointly secure the airwaves and then sell satellite-to-phone access, rather than each building something alone.
The US ambassador to the EU warned of possible “devastating” retaliation if the plan ends up hurting American companies, with SpaceX the obvious company in mind.
SpaceX has warned that the EU proposal could degrade satellite service quality in places like Ukraine. It has also cautioned that the changes might create interference risks worldwide.
Why Europe wants its own lane
The broader goal is strategic independence. The EU wants a homegrown alternative to Starlink, and reserving spectrum for local operators is the quickest lever it controls.
Building satellites takes years and enormous capital. Writing spectrum rules takes a proposal and a vote. Brussels is using the tool it has, while IRIS² works its way toward reality.
What this means for the players involved
For SpaceX, the risk is being squeezed out of a large, wealthy market by policy rather than by product. Starlink can still compete for the open third of the band, but starting with one-third of the access while rivals enjoy protected lanes is a tough position.
Viasat and EchoStar sit in an awkward spot as well. Their existing licenses run out in May 2027, and the new framework clearly favors newcomers based in the EU.
Watch three things from here. First, whether the Commission’s proposal survives negotiation with EU member states intact or gets softened under US pressure. Second, whether Deutsche Telekom, Orange, Telefónica and Vodafone turn their exploratory talks into a formal joint bid. Third, whether SpaceX escalates its warnings about Ukraine and interference into a formal challenge.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.