The Zhitong Finance App learned that a number of major European mobile operators have reached an agreement to set up an industrial consortium to bid for satellite spectrum and launch a direct mobile phone connection satellite service to cope with the competitive pressure brought about by Starlink (Starlink), a subsidiary of Elon Musk.
According to a statement issued on Monday, Deutsche Telekom AG (Deutsche Telekom AG), Orange SA, Vodafone (VOD.US), and Telefonica SA (Telefonica SA) are exploring a joint bid for some of the spectrum resources the EU intends to reserve for local operators. According to previous reports, the goal of this plan is to improve European autonomous satellite capabilities.
According to information, this cooperation model targets a cooperation agreement reached between US operators AT&T (T.US), Verizon (VZ.US), and Deutsche Telekom's subsidiary T-Mobile (TMUS.US). Musk's SpaceX is steadily advancing the competitive mobile business, and plans to rely on the Starlink satellite constellation to provide similar services.
The EU is weighing new rules for satellite access in the 2 GHz band, and plans to reserve one third of this band to local businesses and another third to be dedicated to emergency critical communications. The EU wants to reduce its reliance on US companies for strategically important technologies.
This new set of regulations will regulate the direct connection of mobile phones to satellite services. Currently, this field is dominated by Starlink, which can directly provide SMS, data, and voice call services to ordinary mobile phones through satellites in orbit. Spectrum licenses currently held by Satellite Communications (VSAT.US) and Echo Star Communications (ECHO.US) will expire in 2027.
The four operators will build terrestrial infrastructure and operating systems, then work with an unselected satellite provider to enhance their network coverage and wholesale coverage services.
Vodafone, headquartered in the UK, has previously set up a joint venture with the US satellite company AST SpaceMobile (ASTS.US), which also provides direct satellite service for mobile phones. The statement said that this potential joint bid will not replace existing partnerships already reached between mobile operators and satellite providers.