Deutsche Telekom, Orange, Telefónica and Vodafone signed a letter of intent on Monday to examine making a combined offer for upcoming European spectrum earmarked for mobile satellite services, the companies said.
The operators said the initiative supports the European Commission's goal of strengthening Europe's sovereignty, security and resilience in critical connectivity infrastructure. They said it would give all mobile network operators open, non-discriminatory access to offer direct-to-device services to their customers.
The four companies intend to put in place terrestrial network infrastructure in Europe, along with systems for coordinating and monitoring operations. They will not put capital straight into a constellation of satellites, which would be supplied by a partner that has not yet been chosen. The companies said the letter leaves their current satellite partnerships in place.
They said the aims include answering calls for coverage that reaches everyone, particularly in underserved areas, making public networks more resilient, safeguarding critical communications and backing the development of a European constellation.
The group is seeking to counter competition from SpaceX’s Starlink, according to Bloomberg. The operators are eyeing part of the airwaves that the European Union has suggested setting aside for a homegrown operator, according to Bloomberg.
The E.U. is considering regulations on how satellite services use the 2 GHz band, with one-third of the spectrum earmarked for local companies and another third for critical communications, according to Bloomberg. Viasat and EchoStar hold the current licenses, which expire in 2027, according to Bloomberg.
Under the plan, the carriers would use the satellite partner to improve the reach of their own networks and to offer coverage on a wholesale basis, according to Bloomberg. Vodafone previously partnered with AST SpaceMobile in a joint venture, and that company likewise sells satellite service straight to mobile devices, according to Bloomberg.
Bloomberg also said the tie-up mirrors an alliance formed in the U.S. by AT&T $T, Verizon $VZ and T-Mobile $TMUS U.S., the last of which is a Deutsche Telekom subsidiary.
SpaceX agreed this month to acquire a nationwide 800 MHz spectrum portfolio from Grain Management. Verizon stock fell roughly 10% on the news, T-Mobile stock dropped 13% and AT&T stock lost about 10%. SpaceX said the deal addresses a technical gap in its plans for a cellular service called Starlink Mobile.
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