On 19 October 2026, Deutsche Telekom, Orange, Telefónica and Vodafone signed a letter of intent to explore a joint bid for Europe's next mobile satellite services (MSS) spectrum. By the operators' own account, they would build the European ground network and the coordination and monitoring functions, but would not invest in a satellite constellation. A satellite partner is still to be chosen. The letter is a signal about how Europe wants to handle the 2 GHz band, and it deserves scrutiny before the rules are final.
What the proposal does
The current pan-European 2 GHz MSS authorisations expire in May 2027. On 27 May 2026 the Commission proposed a Regulation, COM(2026) 311, to replace Decision 626/2008/EC, according to the Legislative Observatory procedure file. The file lists the proposal as awaiting a decision in Parliament's ITRE committee, with Angelika Winzig (EPP) as rapporteur. It shows no Council position.
An IDATE analysis of the text describes six paired 2×5 MHz blocks. One 2×10 MHz block would be a sovereign block integrated with the EU's IRIS² constellation. Two 2×5 MHz blocks would be reserved for EU-controlled new entrants. Two more would be open to EU and third-country operators. No applicant could hold more than 2×10 MHz. IDATE also notes a two-year transitional extension for the incumbents, Viasat and EchoStar, and says the selection criteria include coverage commitments, dual-use capability and service security.
The strongest case for the Commission
The case for the proposal is serious. Direct-to-device (D2D) satellite service will become critical infrastructure: emergency alerts, rural coverage and resilience when terrestrial networks fail. Europe has no domestic equivalent of Starlink. Light Reading reports that the incumbent spectrum is held by EchoStar, whose rights are to be transferred to SpaceX, and by Viasat, each with 2×15 MHz. Letting a single non-European firm dominate the band, with its terms set outside EU jurisdiction, is a reasonable supply-security worry. A sovereign tranche plus a reserved tranche for European entrants is a defensible way to keep a path open for new competitors.
Where the design is weak
The difficulty is that eligibility turns on who controls an applicant rather than on what it will deliver. The Commission's own selection criteria already point to better tests: coverage, resilience and security. Those can be written as binding, auditable licence conditions that apply to everyone, including a US or EU applicant. Ownership rules are a blunt proxy for them.
The four-telco letter shows the risk. The operators say the initiative will give all mobile network operators open and non-discriminatory access to D2D, which is a welcome commitment. But they also say it does not replace existing satellite partnerships. According to Light Reading, Deutsche Telekom offers Starlink broadband to businesses and plans Starlink Mobile D2D service, while Orange has teamed with AST SpaceMobile, alongside the Vodafone joint venture Satellite Connect Europe. The group's members are therefore hedged across several providers. A reserved "European" block won by a consortium that has not chosen its satellite partner is a promise rather than a network.
That sequencing matters. A licence is a scarce public asset, and the timeline is short: the incumbents' rights end in May 2027, and the proposal is still before Parliament and the Council. If the allocation rules are settled before a consortium has a satellite supplier, the Commission is allocating spectrum on the strength of intentions. The risk is that spectrum sits underused while D2D services are launched elsewhere on other bands.
There is also a concentration question. The four applicants are among the largest mobile groups in Europe. Reserving blocks for European entrants and then seeing the biggest European incumbents combine to bid for them is not what "new entrant" suggests. A cap of 2×10 MHz per applicant helps in principle, but a joint bid by four firms makes that cap a question of how affiliation is counted. The Regulation should say so explicitly.
What a proportionate rule looks like
First, make the evaluation outcome-based. Weight coverage obligations, emergency-service support, interoperability and open wholesale access heavily, and make them enforceable with clawback if milestones are missed. Second, require applicants to show a credible satellite supply arrangement at the time of award or within a short, fixed deadline, so that reserved spectrum cannot be warehoused. Third, define control and affiliation tightly, so a consortium of incumbents cannot take up every reserved block while other applicants are shut out. Fourth, keep the third-country-open blocks genuinely open. Competition from Starlink or AST SpaceMobile in Europe is a benefit to users, not a threat to be walled off, as long as security and lawful-access requirements are met.
Security can be addressed directly. Ground-segment control, data localisation for critical functions and resilience requirements can be written into the licence. That addresses sovereignty without barring a supplier by nationality.
Why this matters beyond one band
The 2 GHz decision is an early test of how the EU will treat satellite-to-phone service. If the final text lets capability and open access decide who wins, European consumers get a competitive market and a sovereign backstop. If it relies on ownership tests and a deal among incumbents, Europe may secure control of a band while delaying the service the band is meant to enable. Parliament and the Council still have time to tighten the criteria before the May 2027 expiry arrives. They should.