European telecom giants discuss creating a Starlink competitor

The four largest European telecommunications companies - Deutsche Telekom, Orange, Vodafone, and Telefónica - are in talks to join forces to develop satellite mobile communications. Their goal is to increase competition with Elon Musk's Starlink and reduce Europe's dependence on American satellite technology.

This is reported by Politico, citing two sources familiar with the negotiations.

The companies are considering jointly participating in the allocation of radio frequencies needed to provide satellite connectivity services directly to mobile phones. This primarily concerns frequencies in the 2 GHz band, the rights to use which are to be reallocated in 2027.

Direct-to-Device (D2D) technology allows smartphones to connect directly to satellites when a regular mobile network is unavailable. Such connectivity can be used in remote areas, during emergencies, or in case of damage to terrestrial telecommunications infrastructure.

The European Commission is considering a new procedure for the allocation of satellite frequencies. It may include reserving part of the resource for European companies to support the development of their own communications technologies.

According to Politico, the possibility of access to these frequencies has become one of the main incentives for negotiations between operators.

A representative of the French group Orange, Mickael Trabbia, confirmed that the company is considering participation in such an initiative.

"We want to be able to offer this service to our customers. We do not want a single player to dominate the market", - he said.

At the same time, Trabbia did not disclose the details of the negotiations. Vodafone declined to comment, and Deutsche Telekom and Telefónica did not respond to the outlet's requests.

So far, this is only a preliminary agreement: a joint venture has not yet been created, and the decision on frequency allocation has not been finalized.

European operators have intensified discussions amid the strengthening of SpaceX's position in the satellite communications market. Starlink already has an extensive satellite infrastructure, which gives the company a significant advantage over potential competitors.

A separate direction of Starlink's development is becoming direct satellite connectivity services for mobile devices. SpaceX's entry into this market creates new challenges for traditional mobile operators, which have so far mostly relied on terrestrial networks.

In the European Union, increasing attention is being paid to technological independence in communications. This issue has gained particular importance against the backdrop of Russia's war against Ukraine, where Starlink's satellite communications play an important role in ensuring military communications.

European officials fear that dependence on a single commercial provider could pose risks to the security and resilience of critical infrastructure.

In September, French President Emmanuel Macron called on leading European space and telecommunications companies to form an alliance to strengthen joint satellite communications capabilities.

On October 13, EU communications ministers gathered in Limerick, Ireland, to discuss legislative changes that, among other things, could simplify access for European operators to satellite frequency resources.

At the same time, a potential joint service of Deutsche Telekom, Orange, Vodafone, and Telefónica will not mean the immediate creation of a full-fledged alternative to the entire Starlink network. First of all, the companies seek to establish themselves in the promising market of satellite communications with regular mobile phones.

The timing of the launch of such a service, future investments, and the specific technological model of cooperation have not yet been determined.

Based on materials from: Politico, European Commission