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European Telecom Giants Plan Own Satellite Service to Rival Starlink

Deutsche Telekom, Orange, Telefonica and Vodafone signed a letter of intent to explore a joint bid for spectrum for direct-to-device satellite mobile service across Europe, the Financial Times reported Monday, drawing warnings of U.S. retaliation.

A satellite internet dish on a rooftop overlooking a European village at dusk

Europe’s four largest telecom companies are exploring a joint effort to provide satellite mobile service across the continent, a move that would challenge Elon Musk’s Starlink, the Financial Times reported on Monday.

Deutsche Telekom, Orange, Telefónica and Vodafone signed a letter of intent to explore a joint bid for radio spectrum that would let them provide “direct-to-device” satellite mobile services across Europe, according to the report. The initiative is aimed at reducing dependence on suppliers outside the bloc.

A satellite internet dish on a rooftop overlooking a European village at dusk

The plan would not necessarily mean building their own constellation. The companies might instead work with an existing satellite provider, which has not been chosen, according to the report. The European Commission proposed in May that spectrum used for direct smartphone-to-satellite connections be reserved for European operators. Viasat and EchoStar, two American companies, currently use the 2 GHz band, but their licenses are due to expire next year.

U.S. warns of “devastating” retaliation

The U.S. ambassador to the European Union, Andrew Puzder, told the Financial Times that the companies could face “devastating” retaliation unless the plan was revised. He said the proposal would discriminate against American firms such as Starlink, and warned that the companies “should be wary that it could happen and it would be very devastating for those companies,” given the size of the U.S. market.

SpaceX has criticized the plan, warning that a European satellite program could weaken connectivity in Ukraine, where Starlink has carried both civilian and military communications since Russia’s full-scale invasion in 2022.

A chain of satellites crossing the night sky over a dark European countryside with village lights below

Ukraine and India disputes add pressure

Ukraine said speed restrictions on Starshield, the military version of Starlink’s satellite service, remained in place last week. On Oct. 17, Ukrainian President Volodymyr Zelenskyy said the limits hindered Kyiv’s ability to intercept Russian drones. “Unfortunately, we can’t use Starlink or Starshield technology on our territory today to shoot down jet-powered Shaheds,” Zelenskyy said in an online group chat with reporters at the EU summit. “They fly, and we can stop them with aircraft and other air defense, but we don’t use Starlink for that, unfortunately. God willing, this will be restored.”

Both President Donald Trump and Elon Musk denied responsibility for the restrictions, according to Live Mint.

Starlink is also facing disputes in India. Earlier this month, Musk publicly criticized Reliance Industries chairman Mukesh Ambani over delays to Starlink’s launch in the country. India’s communications ministry said Starlink, Bharti-backed Eutelsat OneWeb and Jio Satellite Communications had all received licenses and were undergoing security assessments, putting the three at broadly the same regulatory stage.

A telecommunications control room with a large wall screen showing a world map and network connections, operators as blurred silhouettes

Reporting based on coverage by the Financial Times and Live Mint.