Four European Telecom Giants Explore SpaceX Alternative for Coverage Gaps

Europe’s largest mobile operators want more control over satellite connectivity, but their proposed alternative to SpaceX is still missing its spacecraft operator. Deutsche Telekom, Orange, Vodafone Group and Telefónica signed a letter of intent on October 19 to explore a joint spectrum bid and shared satellite to phone infrastructure. No satellite partner has been selected, and no service has launched.

The proposal could eventually give participating carriers another way to keep customers connected beyond cell-tower coverage. The four companies would build key ground infrastructure and place coordination, monitoring and network operations in Europe, while a separate satellite provider would supply the constellation. Other European mobile operators would receive open and non-discriminatory access to the resulting network.

The spectrum decision comes first

The immediate contest is not over satellites but radio frequencies. Direct to phone service requires spectrum that compatible phones and orbiting spacecraft can use without interfering with other networks. The carriers are considering a joint bid for rights in Europe’s harmonized 2 gigahertz mobile-satellite band.

Those rights are approaching a reset. Existing rights to use the band expire in May 2027, according to a European Parliament briefing. The European Commission has proposed a centralized licensing system that would divide the available spectrum between governmental and commercial services. Part of the commercial allocation would be reserved for operators under European control, while another part would remain open to other eligible operators.

That structure could give the four-carrier initiative a defined regulatory lane, but it does not guarantee an award. Allocation rules must address fees, the duration and transfer of spectrum rights, competition, security and coexistence with terrestrial mobile networks. The eventual framework will influence which satellite systems can serve European phones and whether access remains broad enough to prevent a replacement monopoly.

Shared infrastructure spreads access and responsibility

The proposed model separates the mobile-network layer from the space hardware. Deutsche Telekom, Orange, Vodafone and Telefónica would contribute customer reach, terrestrial-network experience and European operating infrastructure. The satellite partner would contribute deployed or planned spacecraft, space-based radio capacity and the expertise needed to deliver coverage from orbit.

This division avoids requiring the carriers to finance and operate their own constellation. It also leaves a central dependency unresolved: network coverage and capacity will be bounded by the satellite partner’s system. Selecting that company will determine how quickly service could be introduced, what geographic reach it can offer and how much traffic it can support.

Direct to phone satellites are best understood as an extension of mobile coverage rather than a full substitute for dense terrestrial networks. A satellite covers a wide footprint, but its available radio resources are shared across users inside that area. Cell towers can reuse spectrum across many relatively small coverage zones and connect into established backhaul infrastructure. The space link is therefore most valuable where towers are absent, damaged or uneconomic not as a wholesale replacement for urban cellular capacity.

The carriers say their arrangement would reduce fragmentation and expand consumer choice by allowing other European operators to use the common platform. That wholesale model could spare smaller carriers from negotiating separate satellite, spectrum and ground-network arrangements. Its fairness will depend on access terms that have not yet been announced, including how capacity is assigned when demand exceeds what the satellite system can provide.

An alternative, not an immediate break with SpaceX

SpaceX is the recognizable competitor because Starlink is expanding toward mobile-network services. The European initiative could create another route to orbit for mobile subscribers, but the signed letter does not displace SpaceX or any existing satellite agreement. The four operators explicitly said their exploratory bid would not replace their current satellite partnerships.

A similar carrier-led approach has already appeared in the United States, where AT&T, Verizon and T-Mobile launched a joint venture this month to expand satellite connectivity in places with little or no cellular coverage. Both initiatives reflect the same network problem: individual carriers need satellite reach, while shared infrastructure can reduce duplication and make coverage available across a larger customer base.

For European subscribers, the practical promise is connectivity in underserved areas and greater resilience when ground networks are unavailable. For governments and operators, the proposal offers European governance over spectrum, ground systems and critical network functions. Whether it becomes a genuine SpaceX alternative now depends on three decisions still ahead: the European spectrum rules, the award of operating rights and the selection of a satellite partner capable of supplying enough coverage and capacity.

By David Whitaker — Associate editor for AMI’s aerospace and drone systems desk, translating flight systems, aircraft programs, spaceflight, and UAV developments into accessible technical stories.