A European Commission proposal would require satellite spectrum rights holders to make an initial payment and pay annual fees as four telecom operators consider a joint bid to extend mobile coverage.
Deutsche Telekom, Orange, Telefónica and Vodafone signed a letter of intent on Oct. 19 to study bidding together for rights in the 2 GHz mobile satellite band. Their announcement identified customers beyond the reach of ground networks as potential beneficiaries. The agreement does not commit the companies to file an application.
Under the proposal, whoever receives the spectrum rights would owe an initial contribution and annual fees. The four operators have not disclosed a cost for their proposed ground infrastructure. They plan to develop key ground systems and coordinate networks in Europe, while a partner would supply the satellites.
The proposed selection process has three routes. One would serve secure government communications. Of the two commercial routes, one would prioritize new entrants established and controlled in the European Union; the other could admit qualifying applicants from outside the bloc.
The Commission says an EU-wide process could address differences among national authorization rules for services that cross borders. The proposal would update a framework established in 2008, though the Commission says that framework could, in principle, still be used for another selection.
The operators say a shared service could extend coverage in underserved areas and be available to other mobile operators on equal terms. They have not selected a satellite provider. AST SpaceMobile, Inc. described all four carriers as existing partners in an Oct. 19 statement, but neither announcement names it as the supplier for this initiative.
The carriers say their letter of intent does not replace existing satellite partnerships. They have announced no date for choosing a supplier, submitting a bid or launching service.
The proposal was awaiting a European Parliament committee decision as of Oct. 20, with no date listed for that decision. Current rights in the 2 GHz band expire in May 2027.
