Four major European telecom companies have teamed up to challenge Starlink. The coalition will bid for a Mobile Satellite Service (MSS) license on the continent.
Deutsche Telekom, Orange, Telefónica and Vodafone may soon be sparring with SpaceX over direct-to-phone satellite service. They are exploring a potential joint bid for an MSS spectrum allocation across Europe.
The operators are banking on the extensive customer reach, network capabilities, and operational expertise to offer satellite connectivity directly to mobile phones through their respective networks. The effort will ensure non-discriminatory access for all Mobile Network Operators (MNOs) in Europe.
If successful, the joint bid will put the four telecom companies in direct competition with Starlink in a niche space it currently occupies. The press release also says the initiative will support the development of a European satellite constellation, implying it is not considering a deal with SpaceX’s Starlink.
However, things can get complicated. Deutsche Telekom inked a deal earlier this year to use Starlink for satellite-to-phone service in Europe.
Either way, the European coalition has its work cut out for it to catch up with SpaceX. Last year, Japan’s KDDI launched the first satellite-powered data service for mobile phones using Starlink. Before that, SpaceX worked with various carriers to provide text messaging services via orbital satellites, including in rural areas of Canada. Since then, various networks have used Starlink satellites, including T-Mobile in the US.
Meanwhile, SpaceX is rumoured to be planning to go beyond partnerships in direct-to-cell service. The company will reportedly enter the US consumer wireless market under its own name and compete with Verizon, AT&T, and T-Mobile.
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