Stock Markets May 27, 2026 10:16 AM

EU proposal opens 2 GHz spectrum to non-EU satellite firms, paving way for Starlink access

Commission suggests a three-way split of the 2 GHz band to protect domestic operators while allowing foreign direct-to-device satellite services to compete

By Marcus Reed TEF VOD

The European Commission proposed new rules to allocate satellite spectrum for services that connect directly with mobile devices. The plan would divide the 2 GHz band into three equal portions - for government use, new EU-based entrants and established US and EU operators - enabling non-European companies such as Starlink to bid for access while reserving a majority of licences for local operators. The proposal requires approval by the European Parliament and addresses licence renewals for current incumbents.

EU proposal opens 2 GHz spectrum to non-EU satellite firms, paving way for Starlink access
TEF VOD

Key Points

  • European Commission proposes splitting the 2 GHz satellite band into three equal parts - government, new EU entrants, and established US/EU operators; this allows non-EU firms to compete for spectrum while reserving slots for local providers.
  • Current licences expire in 2027; the Commission suggested a two-year extension for incumbents Viasat Inc. and EchoStar Corp.
  • The EU-backed IRIS² constellation is focused on broadband rather than direct-to-device services and is not expected to be operational until 2029. Partnerships between European carriers and LEO operators - including Deutsche Telekom with Starlink, Vodafone with Amazon and AST, and AST with Orange and Telefónica - are already in place.

The European Commission on Wednesday presented a regulatory framework that would open certain satellite spectrum to non-European providers while preserving predominant access for operators based in the EU.

The draft rules target satellite systems capable of communicating directly with mobile handsets and other consumer devices, delivering text, data and voice services without the need for supplementary user equipment. In its outline, the Commission proposed splitting the 2 GHz frequency band into three equal parts: one-third set aside for government use, one-third allocated to new EU-based entrants, and one-third available to established operators from the US and the EU.

The proposal is not final legislation. It must be debated in the European Parliament and approved before it would take effect. Current licences for the relevant services expire in 2027. As part of the package, the Commission suggested a two-year extension of access for incumbent providers Viasat Inc. and EchoStar Corp.

EU satellite programme and timing

The Commission has also supported development of an EU-led constellation, IRIS², built through a consortium led by French companies Eutelsat Communications and SES, together with Spain’s Hispasat. IRIS² is designed around broadband connectivity and is not aimed at direct-to-device services; the system is not expected to be ready until 2029.

Industry alignments

Some European carriers have already begun lining up partnerships with low-Earth orbit providers. Deutsche Telekom announced a tie-up with Starlink for direct-to-device services earlier this year. Vodafone is collaborating with Amazon’s LEO constellation and with Texas-based AST. AST has additionally formed partnerships with Orange and Telefónica.

The Commission framed the proposal as an attempt to strike a balance between enabling advanced satellite-to-device technologies and protecting domestic operators and critical infrastructure from foreign encroachment. The exact implementation and the final distribution of licences will depend on the outcome of the parliamentary review and any subsequent approvals.


Note: The regulatory proposal is subject to parliamentary debate and approval before becoming binding.

Risks

  • Regulatory approval is required - the proposal must be debated and approved by the European Parliament, creating uncertainty over final terms and timing; this impacts telecommunications and satellite services sectors.
  • Licence timelines and transitional arrangements create near-term uncertainty - current licences expire in 2027 and the Commission’s suggested two-year extension for incumbents may influence market access dynamics for both new entrants and established operators; this affects satellite operators and mobile carriers.
  • Capacity and capability gap until IRIS² is operational - the EU’s IRIS² system will not be ready until 2029 and focuses on broadband rather than direct-to-device services, leaving a period where reliance on third-party LEO providers may increase; this has implications for mobile connectivity and downstream services.

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