European Telecom Giants Consider Satellite Consortium to Rival Starlink, Report Says

Four of Europe's largest telecommunications operators are in preliminary discussions to form a consortium for satellite-to-mobile services, a move that could create a European competitor to Elon Musk’s Starlink, according to a Bloomberg report citing people familiar with the matter.

The Potential Alliance

The companies involved in the early-stage talks are Deutsche Telekom AG, Orange SA, Vodafone Group Plc, and Telefónica SA. The report indicates they are considering a joint bid for a portion of the 2 GHz satellite spectrum to offer direct-to-device connectivity across the continent.

Sources stressed that the discussions are in an early phase and that no final decision has been made on whether to form the consortium or submit a bid. The move would represent a significant collaborative effort among Europe's leading carriers to gain a foothold in the nascent direct-to-mobile satellite market.

EU's Push for Sovereign Capabilities

The potential bid comes as the European Union prepares new regulations for the 2 GHz band, with existing licenses set to expire in 2027. The EU's proposal aims to bolster the bloc's strategic autonomy and reduce reliance on foreign technology providers. Under the plan, the spectrum would be divided:

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• One-third reserved for a local European operator.
• One-third allocated to sovereign communications under the EU’s IRIS² program.
• One-third open for competition from international companies.

The IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite) initiative, led by a group including SES, Eutelsat, and Hispasat, is a cornerstone of the EU's strategy. The multi-orbit constellation is expected to enter service in 2029, initially focusing on broadband services.

Competitive Landscape and Market Impact

Formation of the consortium would position Europe's telecom incumbents to compete more directly with Starlink, which has already established a substantial satellite broadband presence in Europe. The U.S.-based company also has agreements with several European operators for future direct-to-device services.

Interestingly, some of the potential consortium members have existing partnerships in the sector. Deutsche Telekom has an agreement with Starlink to launch direct-to-device services starting in 2028. Meanwhile, Vodafone operates a 50/50 joint venture with U.S.-based AST SpaceMobile. According to the Bloomberg report, Vodafone would need to alter this ownership structure to qualify for the spectrum reserved for a European-controlled entity.