The European Commission is paving the way for companies like SpaceX’s Starlink and Amazon’s Project Kuiper to access valuable satellite spectrum within the EU. The upcoming auction for the 2 GHz mobile satellite band, scheduled for 2027, allows both EU and non-EU operators to bid, with the EU reserving two-thirds of the spectrum for its own companies. The 2 GHz band covers frequencies from 1980 to 2010 MHz and 2170 to 2200 MHz, with a significant allocation set aside for the EU’s multi-orbit satellite constellation, IRIS2, which consists of 290 satellites.
The competition is heating up for the remaining third of this allocation, where non-EU players such as Starlink and Amazon's Project Kuiper can participate. Even UK and Norwegian companies will have access to the EU-reserved portion, reflecting their close ties to the EU regulatory framework.
Existing U.S. service providers Viasat and EchoStar will see their licenses extended beyond the May 2027 expiration, offering them a transitional period amid the auction.
How does this auction impact the delivery of satellite services? The spectrum aims to support direct-to-device satellite connections, which allows standard smartphones to communicate directly with satellites, enhancing connectivity in rural regions and providing critical support during emergencies.
Starlink has expanded its presence in Europe, forming key partnerships to increase its market reach. This expands the landscape for satellite internet provision, as the EU strives for technological independence by developing its own orbital resources through the IRIS2 constellation. This move is calculated to ensure that European operators can thrive, resisting potential dominance by firms like SpaceX.
Investors should consider how this announcement influences various players in the satellite industry. For Starlink, gaining access to one-third of the spectrum adds to its existing rights in the region but does not represent a dramatic shift in its operational base. For Amazon, however, this provides a significant growth avenue as it continues to establish its constellation. While Viasat and EchoStar temporarily benefit from license extensions, they will soon face competition in the auction alongside more affluent entrants, which may dictate future market landscapes.