Four European Carriers Team Up to Challenge Starlink on Spectrum

Deutsche Telekom, Orange, Telefónica and Vodafone have signed a letter of intent to jointly bid for satellite spectrum, laying the groundwork for a European direct-to-device network meant to compete with SpaceX's Starlink, according to The Verge.

What exactly did the four carriers agree to?

The companies signed a letter of intent — not a binding contract — "saying they're considering a joint bid for spectrum that would support European direct-to-device satellite competition for SpaceX's Starlink," per the companies' own language cited by The Verge. A letter of intent signals shared direction among the parties but leaves room for any of the four to walk away before a final agreement is reached.

Who builds what in this partnership?

The division of labor is split in two. The telecom companies say they would handle the ground side of the project. Per the joint statement quoted by The Verge, the four operators plan "to establish key ground network infrastructure as well as critical coordination and monitoring functions in Europe, without investing directly in a satellite constellation."

The constellation itself — the actual satellites in orbit — would come from a separate company. That partner has not been named. The statement says the hardware "will be provided by a satellite partner still to be selected," meaning the carriers still need to find and contract with a satellite operator capable of matching Starlink's direct-to-device capacity before any service can launch.

Why are the carriers doing this instead of just buying Starlink access?

The joint statement frames the goal in terms of coverage and control rather than simply matching a competitor's product line. According to the companies, the initiative aims "to meet customer demand for universal coverage in underserved areas, strengthen the resilience of public networks, protect critical communications, and support the development of a European constellation."

That last phrase — a European constellation — is the throughline. Rather than routing direct-to-device traffic through an American-owned satellite network, the four carriers are structuring the deal so that European companies retain the ground infrastructure, the spectrum rights, and a stake in which satellite operator ultimately gets the contract.

How would this combine with the satellite partner once one is chosen?

The Verge reports the structure is meant to pair mobile network operator-led governance with outside satellite capacity: "The partnership between the MNO-led initiative and the satellite operator would combine European governance and market access." In practice, that means the satellite company brings the constellation and launch capability, while Deutsche Telekom, Orange, Telefónica and Vodafone bring spectrum rights, existing subscriber bases across their home markets, and the ground stations needed to route satellite signals into standard phone networks.

What has not been decided yet?

Three pieces remain open: which satellite operator will supply the constellation, how the spectrum bid itself will be structured and funded, and whether the letter of intent converts into a binding joint venture. The Verge's report does not include a timeline, financial commitment, or regulatory filing tied to the announcement, and no satellite partner has been named publicly.

For now, the announcement establishes intent among Europe's four largest telecom groups to pursue a joint path rather than four separate deals with Starlink or other individual satellite providers — a structural decision that precedes any actual satellite service reaching a phone.