A key slice of satellite spectrum in Europe is set for a shake-up. The new rules aim to boost EU players in a market still dominated by major US companies, as satellite networks move closer to becoming part of everyday mobile connectivity and critical infrastructure.

European operators would gain priority access to the 2 GHz satellite frequency band under new rules proposed by the European Commission. The proposal comes as the current licences, held by EchoStar and Viasat, are due to expire in May 2027.

The plan is to reserve one third of the band for government use. This includes critical communications, security, and military services. Another third would be reserved for EU operators entering the commercial market. Only the final third would be open to both EU and non-EU companies. This means that two of the three blocks would be kept for EU-owned or EU-controlled players.

The Commission says this is necessary because the band is becoming more relevant for direct-to-device services. Satellites can connect directly to mobile phones, tablets, or connected devices in areas where regular mobile networks do not work.

Less room for US satellites

The proposal is part of the EU’s push to reduce dependence on foreign companies in strategic infrastructure. As a consequence, it could affect US satellite operators such as Elon Musk’s Starlink and Amazon’s satellite business.

Although Brussels is not planning to exclude foreign operators completely, only one part of the band would still be open for non-EU companies. By reserving the other two parts for European-controlled players, the Commission is giving domestic operators a stronger position in a market where US companies already have major advantages.

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Security and IRIS²

Security is also part of the equation. Satellite networks can provide communications when mobile networks are damaged, disrupted or unavailable. Commissioner for tech sovereignty Henna Virkkunen said the proposal was needed as satellites play an increasingly important role. “More than ever high-capacity, widely available satellite connectivity is essential to strengthen the resilience of the EU’s communication networks,” she noted.

The government part of the band would have to be operated by an EU company and connected to IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite), the EU’s planned satellite system for secure communications. IRIS² is intended to provide encrypted communications for EU institutions, member states, companies and citizens. In practice, Brussels attempts to make sure Europe has its own satellite capacity for government, defence and crises.

One EU system instead of 27

Today, satellite operators face different procedures, fees and conditions in individual countries. This slows investment and makes it harder to offer satellite services across the whole EU. Under the new system, the Commission would select operators at EU level and grant them the right to use the 2 GHz band in all member states under common rules. It would also be able to monitor whether operators respect the conditions and take action if they do not.

The European Parliament and the Council will now examine the proposal. If adopted, it would replace the 2008 rules and create a new EU framework for assigning the 2 GHz satellite band beyond 2027.