What happened
Deutsche Telekom, Orange, Vodafone, and Telefonica are in preliminary discussions to form a consortium to bid for satellite spectrum, aiming to offer satellite-to-phone services, according to sources familiar with the matter.
The potential alliance would compete with Elon Musk's Starlink in Europe, but no final decision has been made on forming the consortium or participating in the bid.
The EU has proposed reserving spectrum for European operators to boost regional satellite communication capabilities, with rules requiring any satellite operator to be majority-owned by a European company.
Why it matters
This move could challenge Starlink's dominance in satellite-to-phone services in Europe, potentially offering more localized options.
The EU's regulatory push aims to strengthen Europe's own satellite infrastructure, reducing reliance on non-European providers.
If successful, the alliance could reshape the competitive landscape for direct-to-phone satellite services, which are currently led by Starlink.
Key facts
The four companies are considering a joint bid for a portion of radio spectrum.
The EU has proposed reserving spectrum for European operators, with majority ownership by a European firm required.
The 2GHz band spectrum is under consideration for new rules, with a third reserved for European companies in an upcoming auction.
Starlink's current license for the band expires in 2027.
Vodafone has a joint venture with AST SpaceMobile, which also offers satellite-to-phone services.
What to watch next
Whether the four telecoms will finalize their consortium and participate in the spectrum auction.
How the EU's proposed rules evolve, especially regarding equity structures for companies like Vodafone.
The impact on Starlink's European operations and the broader satellite communication market as IRIS² is expected to launch by 2029.