Four Major European Carriers Join Forces to Build Direct-to-Satellite Network, Bypassing Starlink

Four Major European Carriers Join Forces to Build Direct-to-Satellite Network, Bypassing Starlink

The European telecom market is brewing a collective counteroffensive against SpaceX's Starlink. Deutsche Telekom, Orange, Telefónica, and Vodafone—four major carriers—have signed a letter of intent to jointly bid for spectrum resources to support direct-to-device satellite communication services in Europe. This move signals that mainstream European mobile operators are no longer content to stand on the sidelines of satellite internet; instead, they are attempting to build autonomous satellite communication capabilities through a consortium.

Division of Labor Among the Four Carriers: We Handle the Ground, Someone Else Handles the Sky

According to disclosed information, the four telecom companies have clearly defined their roles: they will be responsible for building and operating ground infrastructure, while the satellite constellation portion will be provided by an as-yet-unannounced satellite partner. This "ground + space" division of labor essentially replicates the path taken by Starlink in cooperating with ground operators, but with the leadership in European hands.

What is noteworthy is that the four carriers chose to signal their intentions through a joint letter of intent rather than acting independently. There are two considerations behind this. First is the scarcity of spectrum resources—direct-to-device satellite services require specific spectrum support, and the cost and risk of bidding individually are too high; a consortium can share the pressure. Second is the regulatory dimension: the EU has been pushing a "digital sovereignty" agenda in recent years, and a consortium format is more likely to gain policy support.

"Digital Sovereignty" is one of the EU's core policy agendas in recent years, emphasizing Europe's reduction of dependence on external suppliers in key digital domains such as data, cloud infrastructure, chips, and connectivity networks, while retaining rule-making authority. In the context of satellite communications, this agenda manifests as a cautious attitude toward non-EU constellation operators and strategic protection of Europe's indigenous satellite capabilities and spectrum resources. At the EU level, this orientation has been reflected in multi-orbit satellite constellation programs such as IRIS². Therefore, the four carriers' joint bid for spectrum is not only a commercial consideration but also a proactive alignment with the "European autonomous and controllable" framework in policy narrative, thereby gaining a more favorable position in regulatory approvals and spectrum allocation.

Why Now? The Pressure from Starlink

Starlink's pace of advancement in the direct-to-device field is an important external factor driving European operators to band together. SpaceX has already established partnerships with multiple operators, positioning satellite-to-phone connectivity as a core scenario for next-generation connectivity. For European operators, continuing to rely on cooperation with Starlink means being in a passive position in the satellite communication value chain—the ability to influence spectrum, constellations, and terminal standards could all slip away.

In the letter of intent, the four carriers explicitly mention "supporting European direct-to-device satellite competition." The wording itself speaks volumes: they view Starlink as a competitive force requiring a direct hedge, not merely a partner. Choosing a solution that "does not include Starlink" is an attempt to preserve European autonomy at the satellite communication infrastructure level.

Direct-to-Device (D2D) satellite communication refers to enabling ordinary consumer devices such as smartphones to connect directly to satellites without adding specialized antennas or terminals, thereby providing SMS, voice, and even data services. The key technical challenge is that the satellite side needs sufficiently large antenna aperture and transmission power to compensate for the inherent disadvantages of low antenna gain and low transmission power on the phone side, while also addressing Doppler shift, tight link budgets, and spectrum coordination with terrestrial cellular networks. Current mainstream approaches include reuse of existing spectrum based on LEO constellations (e.g., operators sharing terrestrial spectrum licenses with satellites) and dedicated D2D spectrum—two paths that directly motivate European operators to jointly bid for spectrum.

Starlink's D2D strategy is primarily advanced through its "Direct to Cell" capability, leveraging large-aperture satellites equipped with phased-array antennas to collaborate with ground operators, enabling existing LTE phones to access the satellite network in areas without terrestrial signal coverage. The key to this model is that SpaceX simultaneously controls the constellation, launch capability, and terminal-side protocol adaptation, giving it strong bargaining power. For European operators, while cooperation can quickly fill coverage gaps, control over the core network and spectrum resources may tilt toward SpaceX. This explains why the four operators prefer to build their own consortium rather than simply purchasing Starlink services—essentially, they are vying for control in the satellite communication value chain.

Who Is the Undisclosed Satellite Partner?

The biggest unknown at present is the provider of the satellite constellation. The letter of intent does not disclose the specific partner, leaving room for market speculation. Possible candidates include European indigenous satellite operators and potentially other players advancing LEO constellation projects. The selection of the satellite partner will directly determine the technical approach and deployment pace of this joint project.

From a timeline perspective, signing the letter of intent is only the first step. Subsequent actions include completing the spectrum bidding, finalizing the satellite partner, and coordinating regulatory approvals across four countries. Commercialization of direct-to-device satellite services typically takes years, and whether this consortium can make the model work—given Starlink's first-mover advantage—remains to be seen.

Spectrum bidding and coordination mechanisms are key variables determining whether the project can materialize. The spectrum required for D2D services typically involves satellite reuse authorization of mobile bands (such as 700MHz, 800MHz, 1.8GHz, 2GHz, etc.), while European spectrum is managed separately by national regulatory authorities (such as Germany's Federal Network Agency, France's Arcep, etc.). A cross-border consortium needs to complete authorization coordination country by country—a complex and lengthy process. In addition, when satellites and terrestrial networks share spectrum, they must comply with International Telecommunication Union (ITU) coordination rules to avoid interference with neighboring countries and other systems. If the consortium fails to secure key bands or coordination fails, the commercial foundation of the entire "ground + space" division-of-labor model will be directly undermined.

Potential Impact on the Industry Landscape

If this joint project progresses smoothly, the European direct-to-device satellite market could form a landscape where the "Starlink camp" and the "European carrier consortium" coexist. For consumers, competition may bring more diverse satellite direct-connect plan options; for the industry chain, satellite manufacturing, ground station equipment, spectrum management, and related segments will all see new demand growth.

Risks also exist. The four operators belong to different countries with different market strategies, and the consortium's decision-making efficiency and profit-sharing mechanisms are long-term challenges. The outcome of the spectrum bidding is also uncertain—if the consortium fails to secure key spectrum, the foundation of the entire plan will be shaken.

The joint action by European operators marks a shift in satellite communication competition from individual corporate rivalry to alliance-based gaming. Starlink now faces not scattered European operators but a consortium attempting to establish autonomous rules at the spectrum and infrastructure levels. The trajectory of this contest will shape the competitive landscape of the global direct-to-device satellite market in the coming years.

One-line Summary

Four major European carriers plan to jointly bid for spectrum and build their own direct-to-satellite capabilities to hedge against Starlink.

Paragraph Summary

Deutsche Telekom, Orange, Telefónica, and Vodafone have signed a letter of intent to jointly bid for spectrum resources to support European direct-to-device satellite communication services. The four carriers have clearly defined their roles: handling ground infrastructure while a not-yet-announced partner provides the satellite constellation, aiming to replicate the Starlink-operator cooperation model but with European leadership. The move is driven by spectrum scarcity requiring cost-sharing, aligns with the EU's "digital sovereignty" agenda, and serves as a direct response to Starlink's first-mover advantage in D2D. The project still requires spectrum bidding, satellite partner selection, and multi-country regulatory approvals, with a long commercialization cycle; the consortium also faces long-term challenges in decision-making efficiency and profit-sharing.