Deutsche Telekom, Orange, Telefónica and Vodafone have signed a letter of intent to explore a joint bid for satellite spectrum in Europe. The four companies announced it on Monday in a joint release.
The spectrum is for mobile satellite services (MSS), the radio frequencies that link satellites with mobile devices. The bid would be for its future allocation in Europe. The letter commits the four only to explore a bid, and they gave no timetable.
They said the plan supports the European Commission’s aim of strengthening Europe’s sovereignty, security and resilience in critical connectivity. The four would give every mobile operator open, non-discriminatory access to offer direct-to-device (D2D) services to its customers. The model is meant to foster competition and expand consumer choice, they said.
Ground network, not satellites
The four plan to set up the key ground network in Europe, along with critical coordination and monitoring functions. They will not invest directly in a satellite constellation. The constellation would come from a satellite partner they have yet to select.
They said they aim to bring coverage to underserved areas, make public networks more resilient and protect critical communications. They also want to support the development of a European constellation.
The letter does not replace existing satellite partnerships, the four said. AST SpaceMobile, which counts all four as partners, also announced the letter on Monday. It said it supplies ground stations in Europe through its joint venture, Satellite Connect Europe.
TNW reported in September, citing Bloomberg, that the four carriers were in early talks about a joint satellite venture.
Brussels and the 2 GHz band
In May, the European Union said it was considering a plan to reserve part of the 2 GHz band for European companies. They would use it to offer satellite services. SpaceX criticised the idea, saying it would worsen service in Ukraine, The Verge reported, citing the Financial Times.
In the US, AT&T, T-Mobile and Verizon announced their own collaboration earlier this year. It would combine their spectrum in rural areas and dead zones.
Luke Kehoe, lead industry analyst at Ookla, called it a commercial concern, in comments carried by Advanced Television.
“Europe’s operators want to avoid becoming effectively MVNOs for satellite coverage, selling somebody else’s service on somebody else’s terms. Securing MSS spectrum would give them a stronger hand in negotiations.” Luke Kehoe, lead industry analyst, Ookla