A quarter of Europe's largest telecommunications operators have held preliminary discussions to form a consortium that would bid on satellite spectrum and launch direct-to-mobile services across the continent, according to a report by Bloomberg. The potential venture—involving Deutsche Telekom, Orange, Vodafone Group, and Telefónica—would jointly bid for airwaves that the European Union has reserved specifically for a European operator, marking a coordinated effort to challenge the dominance of Elon Musk's SpaceX in the direct-to-device (D2D) market.
The move comes as Europe seeks to strengthen its sovereign satellite capabilities and reduce reliance on non-European players. SpaceX, through its Starlink constellation, has established a commanding lead in the D2D landscape, having signed agreements with several European mobile carriers, including Deutsche Telekom. A European-backed consortium would represent a significant step toward creating a homegrown alternative, with the EU reserving a portion of the 2GHz spectrum band for local companies as part of proposed regulatory changes.
Bloomberg noted that no final decisions on the consortium or its bidding plans have been made as of yet. The discussions remain exploratory, but the timing is critical: current licenses for the spectrum are due to expire in 2027, and the EU is actively considering new rules that would keep a third of the band reserved for European operators. Such regulations would directly enable a direct-to-mobile service, an area where Starlink has so far held the upper hand.
Unsurprisingly, SpaceX has opposed the EU's stance on limiting spectrum holdings in this band. The company has been aggressive in expanding its D2D partnerships across Europe, and any regulatory push to reserve spectrum for local players would directly challenge its growth strategy in the region. The EU's approach reflects a broader geopolitical trend of nations seeking greater digital autonomy, particularly in critical satellite communications infrastructure.
Vodafone, one of the four operators involved in the talks, already has its own D2D ambitions. The company formed a joint venture with US satellite firm AST SpaceMobile last year, signing an agreement to create a European direct-to-device satellite service business. This existing partnership could complement or potentially complicate the consortium's efforts, depending on how the discussions evolve.
Beyond the commercial operators, the EU has also set aside another third of the allocated spectrum for sovereign communication services provided by IRIS², the satellite constellation being built by a consortium led by SES, Eutelsat Communications, and Hispasat. IRIS²—short for Infrastructure for Resilience, Interconnectivity, and Security by Satellite—represents the bloc's flagship initiative to secure independent satellite infrastructure, further underscoring the strategic importance of the spectrum in question.
Industry analysts view the potential consortium as a logical response to the growing strategic importance of satellite-to-mobile connectivity, a market that is expected to expand rapidly as consumer devices increasingly support direct satellite access. If the four telcos move forward with a joint bid, it would mark one of the most significant collaborative efforts in European telecommunications, pooling the resources and subscriber bases of some of the continent's largest carriers to compete on a global stage.