SpaceX move into mobile not replicable in Europe – Vodafone

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Speakers at Network X panel, from the left: Karim Taga (Arthur D Little), John Giusti (GSMA), Tim Boddy (Vodafone), Volodymyr Lutchenko (Kyivstar), Jassem Nasser (Space42).(Source: Tereza Krásová/Light Reading)

Satellite has been a hot topic in the telecom industry in recent months, with much attention paid to the push by Elon Musk's SpaceX to acquire mobile spectrum in the US. With its recent purchase of Grain Management's 800MHz spectrum, the company is continuing to pursue its goal of becoming a "major mobile carrier" in the US. Yet, many are unconvinced this is a viable path, let alone a move that would be replicable in Europe.

"It's not obvious to me that SpaceX would do the same in Europe as it did in the US," Tim Boddy, group ventures director at Vodafone and vice chairman of Satellite Connect Europe, said today during a panel at the Network X conference in Vienna. He pointed to variations between the US market and Europe, noting that the market for spectrum is different, with operators not expecting to own their spectrum in perpetuity.

He also highlighted differences between the regulatory environments, arguing that "regulators will want to pay close attention to the need for competition and alternatives in this space," as opposed to a dominant US player. In addition, he also raised the tough competitive environment in Europe as a possible deterrent: "We actually have the lowest prices in the world relative to income."

Others expressed skepticism about SpaceX's ability to replace mobile networks, including GSMA's chief regulatory officer, John Giusti, who rejected the notion. "I don't anticipate it doing that," he said, arguing his view is based on how the laws of physics work.

Europe's sovereignty dreams

Satellite Connect Europe is Vodafone's joint venture with AST SpaceMobile, another US-based satellite company. Yet, Boddy argued it is fundamentally different to how Starlink or Amazon operates, noting it performs much better on the sovereignty front. Crucially, he argued that the core network and the radio infrastructure are on the ground and located in Europe, controlled by the JV, which is based in Luxembourg.

Still, Boddy seemed to acknowledge there is appetite for a fully homegrown service. "It's not possible today for Europe to have a sovereign satellite constellation," he said, adding "it may be possible in the future, that's something I'm sure every European would desire."

There has certainly been a push for more sovereignty in satellite, for example, with the EU's recent decision to carve out a chunk of spectrum for European companies.

But for some Europeans, satellite sovereignty is far from being the greatest challenge in telecom. Asked by the moderator about the issue, Volodymyr Lutchenko, COO of Ukraine's Kyivstar, pointed out that in the current situation, if the choice is between the "theoretical problem of sovereignty" and people's lives, "you always choose people's lives."

Ukraine, he said, has a particularly high take-up for direct-to-device (D2D) services, representing over 30% of global subscribers. His company has been providing D2D services in partnership with Starlink since last year, and it has recently introduced data services, albeit limited to select services like Viber or WhatsApp for Android users.

Rather than an add-on for hard-to-reach places, it serves as a backup to keep people connected when the infrastructure is disrupted by the ongoing war waged by Russia.

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