A satellite antenna belonging to a local telecommunications company on a hillside in Valais, near Leuk, Switzerland. [Getty Images]
A satellite antenna belonging to a local telecommunications company on a hillside in Valais, near Leuk, Switzerland. [Getty Images]

Four of Europe's leading telecommunications companies are moving to form a consortium to counter Elon Musk's Starlink in the direct satellite-to-phone market.

Bloomberg reported Tuesday (local time), citing sources, that Deutsche Telekom of Germany, Orange of France, Vodafone of the United Kingdom and Telefonica of Spain have begun discussing the formation of a consortium to participate in the EU's satellite frequency auction for direct satellite-to-phone connectivity. The four carriers are pursuing a joint bid for the satellite spectrum band the EU plans to set aside for regional operators.

The EU has been working to build its own satellite communications network to curb the dominance of SpaceX's Starlink. The bloc plans to auction off the 2 GHz frequency band, which expires next year, and is considering reserving one-third of that spectrum for regional operators in which European companies hold a majority stake.

Bloomberg said no final decisions have been made on the consortium's formation or plans for the frequency auction.

Starlink, which provides satellite broadband service across Europe, has been exploring direct satellite-to-phone partnerships with European carriers including Deutsche Telekom. Because Starlink holds no spectrum rights in Europe, it can only expand its European operations through local carriers — a structure that has put it at odds with the EU's latest move to restrict foreign companies from bidding in the spectrum auction.

The EU has already earmarked another third of the auctioned spectrum for Iris2, the bloc's own satellite network led by SES, Eutelsat and Hispasat, which is scheduled to begin operation in 2029.


kate01@heraldcorp.com