EU seeks to reserve mobile satellite licences for European firms

The EU said Wednesday that it wants to reserve for European firms a share of the mobile satellite frequencies currently used by US operators, as part of the bloc's push to assert greater control over strategic technologies.

Licences to operate the frequencies were granted to US operators Viasat (formerly Inmarsat) and Echostar (previously Solaris) in 2009, and are to expire in May 2027.

The European Commission said it planned to extend the current set-up for two years, but from then a new allocation procedure should set aside at least two-thirds of the spectrum for EU operators.

"We now have a rare opportunity to choose what we want to do for our future," EU tech chief Henna Virkkunen told reporters in announcing the plan.

"We want to boost Europe's competitiveness, we want to strengthen Europe's security, and also we want to enhance new technological possibilities -- and all of this by taking into account the current changing geopolitical context," she said.

Specifically, the move concerns the two gigahertz mobile satellite services band, described as key to ensuring high-speed internet access in areas without terrestrial coverage.

"This band is absolutely vital for our citizens, businesses, and also governments alike," Virkkunen said, calling satellite connectivity "crucial for our governmental services and Europe's critical communications".

Under the proposal, which needs approval by the EU parliament and member states, a third of the band would be "dedicated to governmental use, such as for critical communications, security and military to be provided by an EU operator", a commission statement said.

Two-thirds would be for commercial use, from providing mobile internet services to connecting devices such as personal fitness trackers and emergency response tools.

Of the commercial segment, half would be reserved for "EU operators entering the market" and half would be open to both EU and non-EU operators, including potential new bidders like Elon Musk's Starlink.

The satellite move is part of a broader EU push to cut what it sees as a risky overreliance on foreign tech firms, with Brussels due to unveil a highly anticipated technological sovereignty plan next week.

Covering the cloud, AI and semiconductor sectors, the plan is expected to include steps to favour European suppliers in public contracts, mirroring the bloc's "Made in Europe" push in industrial sectors including car manufacturing.

The drive runs the risk of further straining relations with Washington, which has made clear its concern over US tech giants being cut out of lucrative contracts.