The Canada Brief

Economy · 13 d ago

A mobile phone tower at dusk

Europe's four largest telecom companies team up to challenge Starlink

The four companies

  • Telefónica
  • Orange
  • Vodafone
  • Deutsche Telekom

Telefónica, Orange, Vodafone and Deutsche Telekom signed a letter of intent to study a joint bid for European spectrum reserved for satellite-to-phone services.

Phone-to-satellite service

direct-to-device

The service, called direct-to-device, links an ordinary phone straight to a satellite with no special terminal. The companies say it would cover remote areas and protect critical communications.

What we know

  • A letter of intent for a joint bid
  • They will build ground networks, not satellites

Not yet

  • Which satellite partner
  • The auction's terms and cost

The four would build the ground infrastructure but not the satellites, which would come from a partner not yet chosen. The European Commission has yet to set the terms of the spectrum auction.

Why it matters

The move comes about 10 days after Starlink acquired spectrum in the United States to compete as a mobile operator, which sent telecom shares down worldwide.