Deutsche Telekom, Orange, Telefonica and Vodafone Group signed a letter of intent to explore a joint bid for a future allocation of spectrum for Mobile Satellite Services, as part of efforts to advance direct-to-device (D2D) capabilities in Europe.

The operators jointly stated their initiative backs a European Commission (EC) ambition to strengthen sovereignty, security and resilience in critical connectivity infrastructure.

News of a potential joint bid emerged last month when Bloomberg reported the four had entered discussions to bid on a third of the total spectrum due to be allocated by the EC in the 2GHz band, which has been reserved for European companies.

In a pitch heavy on the advantages of working together, the quartet explained a joint bid for spectrum would enable each provider with open and non-discriminatory access to offer D2D to customers in a model designed to “foster competition, reduce market fragmentation and expand consumer choice across Europe”.

They aim to use satellite to connect underserved areas, strengthen public networks, protect critical communications and support the development of a European constellation.

The operators plan to establish key ground infrastructure, critical coordination and monitoring functions without investing directly in a satellite constellation.

This opens the door to a partnership with a satellite partner, which is yet to be selected.

Execution
The letter of intent does not replace any existing satellite partnerships.

Vodafone’s satellite activity is particularly high-profile, with the company involved in a joint venture with US-based AST SpaceMobile.

Paolo Pescatore, analyst at PP Foresight, said the announcement is more an exploratory agreement rather than a confirmed launch.

“The opportunity is to make satellite coverage a seamless extension of mobile connectivity. Success will depend on execution, device compatibility and pricing that gives customers a compelling reason to pay, along with reassurance that they can stay connected in more places.”

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