Europe’s effort to build more homegrown communications infrastructure could gain support from four of the continent’s largest mobile operators, which are discussing a possible partnership focused on connecting smartphones directly to satellites.
Deutsche Telekom, Orange, Vodafone and Telefónica have held talks about cooperating on satellite-to-mobile services and potentially seeking European Union spectrum together, according to Bloomberg News, which reported the discussions on Sept. 7, citing people familiar with the matter.
The deliberations remain preliminary, Bloomberg reported, and the companies have not committed to establishing a consortium or participating jointly in a spectrum process.
The talks highlight how satellite communications are becoming increasingly intertwined with Europe’s traditional mobile industry. Rather than relying exclusively on towers and other terrestrial infrastructure, carriers are exploring satellites as a way to extend service to places with weak or nonexistent cellular coverage.
That shift has also acquired a geopolitical dimension. European officials have been working to expand the region’s control over critical digital and space infrastructure at a time when US companies, most prominently Elon Musk’s SpaceX and its Starlink network, have built commanding positions in commercial satellite communications.
At the center of the discussions is spectrum in the 2-gigahertz range, according to Bloomberg. Existing rights are due to expire in 2027, creating an opportunity for European authorities to reconsider how those frequencies should be allocated.
Read more: Telecom Argentina Wins Conditional Approval for Telefónica Acquisition Following Antitrust Review
Bloomberg reported that EU officials are considering an approach that would reserve part of the available spectrum for a company under majority European ownership. Such a requirement could give locally controlled businesses a clearer route into the emerging direct-to-device market.
We’d love to be your preferred source for news.
Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!
The technology is designed to allow compatible mobile phones to communicate with satellites when a conventional cellular network cannot be reached. That could make satellite capacity a complement to existing mobile networks rather than a separate broadband product requiring specialized customer equipment.
The competitive landscape is complicated by the fact that European carriers already have relationships with different satellite providers.
Deutsche Telekom has worked with SpaceX on direct-to-device technology, according to Bloomberg. Vodafone, meanwhile, has pursued satellite connectivity through a venture with AST SpaceMobile. Bloomberg reported that the ownership arrangements surrounding that venture could become relevant if EU rules require majority European control for access to certain frequencies.
The broader European satellite strategy extends beyond the mobile operators. The EU is developing IRIS², a planned multi-orbit communications system intended to serve government and commercial users and increase the bloc’s access to secure satellite capacity.
Against that backdrop, cooperation among Deutsche Telekom, Orange, Vodafone and Telefónica could give established mobile-network operators a larger role in determining how satellite connectivity reaches European consumers.
It could also create a more coordinated European counterweight as international satellite companies expand services that increasingly overlap with the business of terrestrial telecom operators.
For now, however, the discussions have not produced a final arrangement. Bloomberg characterized the talks as early-stage, leaving open whether the four companies will ultimately submit a joint proposal or pursue separate satellite strategies.
The significance of the negotiations may therefore lie as much in their timing as in their eventual outcome. Satellite and mobile networks, once largely separate businesses, are beginning to converge. Europe’s coming decisions over spectrum will help determine whether that convergence is led primarily by global satellite operators, the continent’s established telecom companies, or a combination of the two.
Source: Bloomberg News
Add as Preferred Source