The EU is preparing to reserve most future mobile satellite spectrum licences for European companies, marking one of Brussels’ clearest attempts yet to reduce reliance on American technology infrastructure while still avoiding a full-scale protectionist rupture with Washington.
Under a proposal expected to be unveiled by the European Commission this week, roughly two-thirds of the bloc’s future mobile satellite spectrum would be ringfenced for European operators, according to officials familiar with the discussions. The remaining portion could still be open to non-European companies, potentially allowing Elon Musk’s Starlink and Amazon’s Kuiper project to participate in the market.
The debate centres on valuable S-band frequencies used for mobile satellite services, which enable direct communications for smartphones, vehicles and industrial equipment in remote regions where terrestrial networks remain weak or unavailable. Existing licences held by US groups Viasat and EchoStar are due to expire in May 2027, creating a rare opportunity for Brussels to reshape the sector.
The proposal forms part of a broader European push for what policymakers increasingly describe as “technological sovereignty” — an effort to ensure the continent retains strategic control over critical digital and communications infrastructure. Satellite connectivity has become a particularly sensitive issue following Russia’s invasion of Ukraine and growing concern over Europe’s dependence on privately controlled US systems.
At the centre of Europe’s ambitions is IRIS2, the EU-backed multi-orbit satellite constellation intended to rival Starlink and provide secure communications capabilities across the bloc. The programme, which is expected to comprise around 290 satellites, is widely seen as Europe’s flagship response to the rapid expansion of American low-Earth-orbit networks.
European satellite operators such as Eutelsat are expected to benefit from the new framework. Eutelsat, which merged with Britain’s OneWeb business in 2023, has emerged as one of Europe’s most prominent challengers to SpaceX in satellite broadband services.
The Commission’s plans nevertheless reveal tensions within Brussels over how aggressively the bloc should shield domestic industry from foreign competition. Some commissioners have reportedly argued for fully excluding non-European operators from future spectrum allocations, while others favour a more open framework that would preserve investment and innovation incentives.
Henna Virkkunen, the EU’s technology chief, is understood to support a less restrictive approach, reflecting concerns that overt discrimination against US firms could provoke diplomatic friction at a moment when Europe continues to rely heavily on American defence and cloud infrastructure.
The dispute mirrors wider European debates over cloud computing, artificial intelligence and semiconductor supply chains. Policymakers increasingly fear that Europe has fallen dangerously behind the US and China in critical technologies, leaving the bloc exposed economically and strategically.
Satellite connectivity has rapidly evolved from a niche communications business into a central pillar of national security and industrial policy. Starlink’s role in Ukraine demonstrated the strategic importance of resilient satellite networks, while advances in direct-to-device communications are drawing telecoms operators and technology companies deeper into the sector.
The Commission is also under pressure to foster a more competitive European space industry at a time when investor enthusiasm for the sector has intensified. Shares in several European satellite and aerospace companies have rallied in recent months, helped by expectations of increased defence spending and renewed interest in space-based communications infrastructure.
While European groups are expected to secure preferential access under the new regime, the inclusion of non-EU bidders suggests Brussels remains reluctant to entirely shut out foreign capital and expertise. British and Norwegian operators may also be eligible to compete for licences despite not being EU member states.
Industry executives say the outcome of the spectrum negotiations could shape the future structure of Europe’s satellite market for more than a decade. The proposal will still require approval from EU governments and the European Parliament, ensuring months of lobbying from telecoms operators, satellite companies and member states eager to secure influence over one of the fastest-evolving areas of digital infrastructure policy.
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