Brussels rewrites the rules for satellite spectrum after 2027: priority to European operators.
The European Commission has adopted a proposal for the selection of mobile satellite service providers who will be authorized to use the harmonized 2 GHz frequency band beyond 2027, the expiration date of current licenses. Characterized by a single selection procedure at the EU level, the plan foresees that one third of the 2 GHz band would be dedicated to government use, two thirds would be dedicated to commercial use.
Brussels indicates that granting a EU-level authorization for the use of the 2 GHz frequency band for mobile satellite services in all Member States will ensure regulatory consistency and allow operators to develop and provide cross-border services.
According to Bloomberg, the EU has proposed new rules for satellite access that will allow non-European companies, such as Starlink from SpaceX, Elon Musk’s aerospace company, to participate in frequency auctions, while preserving most of the spectrum licenses for local companies.
The European executive’s decision is driven by concerns over China’s technological rise and the dominance of US tech giants amid transatlantic tensions, notes Reuters, adding that Starlink and Amazon’s low Earth orbit satellite service are the main players in the satellite internet market and, according to analysts, the EU’s latest satellite spectrum plans could disadvantage these US competitors.
The proposal will now be examined and negotiated by the European Parliament and Member States within the EU Council. Meanwhile, the Commission could consider extending current licenses to give institutions the necessary time to define and implement the new frequency allocation mechanism.
All the details.
A SINGLE PROCEDURE AT EU LEVEL
Thus, the European Commission’s proposal concerns the selection of mobile satellite service providers who will be authorized to use the harmonized 2 GHz band in all European Union Member States beyond May 2027. Brussels emphasizes that granting a single EU-level authorization “will ensure regulatory consistency and allow operators to develop and provide cross-border services.”
The proposed regulation will replace the 2008 decision on the basis of which current mobile satellite operators were selected. The new framework is also consistent with the Digital Networks Act (DNA), according to which all satellite spectrum should be authorized at the European level through a unique set of conditions valid in all Member States.
ONE THIRD OF THE BAND RESERVED FOR GOVERNMENT USES
According to the plan presented by the Commission, one third of the 2 GHz MSS band will be allocated to government uses. These include critical communications, security, and military applications.
This portion of the spectrum would be entrusted to a European Union operator, in line with the declared goal of strengthening European technological sovereignty in a sector considered strategic.
In particular, as stated by the European executive, this operator will integrate its capabilities with the EU’s multi-orbit Iris2 network, considered the European response to Musk’s Starlink, whose operation is expected by 2030. In December 2024 Brussels approved a €10.6 billion project to develop a multi-orbit constellation of 290 satellites, with the SpaceRISE consortium. The industrial consortium, led by Eutelsat, SES, and Hispasat, also involves Thales Alenia Space, Airbus Defence and Space, OHB, Telespazio, Deutsche Telekom, and Orange.
COMMERCIAL SERVICES AND DIRECT-TO-DEVICE
The remaining two thirds of the band will instead be reserved for commercial use. The proposal includes Direct-to-Device (D2D) services for mobile devices, intended to ensure coverage in areas without terrestrial networks, as well as solutions related to the Internet of Things.
Examples given include devices for physical activity monitoring, energy monitoring systems, and emergency response devices.
PRIORITY TO EUROPEAN OPERATORS
Regarding the commercial part of the band, the Commission proposes a balanced division of the spectrum. A share would be reserved for European operators entering the market, with the goal of “encouraging supplier diversification and incentivizing the entry of EU suppliers into the market.”
The remaining part would be open to both European and non-EU operators. According to Brussels, the new model aims to “give more space to technological sovereignty and stimulate competition.”
THE EU COMMISSION’S STRATEGY
“We want to strengthen Europe’s competitiveness, consolidate European security. We want to seize new technological opportunities. And all this taking into account the ever-evolving geopolitical context,” said Henna Virkkunen, European Commissioner for Technology, at a press conference covered by Reuters.
“Our proposal meets all these requirements.” Virkkunen rejected potential US criticisms that the proposal might target American companies, stating: “We are very transparent and fair.”
ANALYSTS’ COMMENT
According to Politico, the decision risks irritating Washington, just days after the European institutions reached an agreement on the details of a new EU-US trade deal. It will limit the frequencies available to US companies, including Elon Musk’s SpaceX and Amazon Leo, slowing their rapid expansion. In short, the outlet summarizes, “it would mean moving from a range of frequencies currently controlled by American companies to one where they would get, at best, a third.”
The Commission’s plan could hinder SpaceX’s ambitions in Europe and leave it at a structural disadvantage, wrote Sam McHugh, senior analyst at BNP Paribas Equity Research, in a client note, also reported by Reuters.
“It is a small advantage for European telecom operators, as it further reduces the chances that SpaceX could ever directly compete with mobile operators in the EU.”
