More bad news for Starlink? After India, Ukraine controversies, European telcos plan to launch own satellite service
Deutsche Telekom, Orange, Telefónica and Vodafone, Europe’s four largest telecom groups, are reportedly exploring the possibility of launching their own satellite mobile services to reduce dependence on suppliers outside the bloc and challenge the dominance of billionaire Elon Musk’s Starlink.
The Financial Times reported on Monday (local time) that the companies had signed a letter of intent to explore a joint bid for radio spectrum that would allow them to provide "direct-to-device" satellite mobile services across Europe. The move could further escalate transatlantic tensions over communications technology.
The development comes as Musk’s Starlink faces controversies in countries ranging from Ukraine to India.
The European Commission proposed in May that spectrum used for direct smartphone-to-satellite connections be reserved for European operators. Two US companies, Viasat and EchoStar, currently use the 2 GHz band, but their licences are due to expire next year.
The initiative, which has been applauded privately, would see the companies build ground-based facilities, including base stations, to support satellite connections. However, instead of developing their own satellite constellation, the companies might collaborate with an existing provider, which has yet to be selected.
Selecting a provider could pose additional challenges, since most satellite constellations are operated by US or Chinese companies. While French satellite operator Eutelsat has developed a large-scale constellation, it remains far behind Starlink, which has over 11,000 satellites in orbit.
The proposal has heightened tensions between the US and Europe. The US ambassador to the European Union, Andrew Puzder, told the Financial Times that European companies could face "devastating" retaliation unless the bloc revised the plan, which he said would discriminate against American firms such as Starlink.
When asked whether companies in Europe should fear retaliation, Puzder said they “should be wary that it could happen and it would be very devastating for those companies”, given the size of the US market.
The bloc’s plan to counter Starlink’s dominance in the region has drawn fierce criticism from SpaceX, which warned that the satellite programme could weaken connectivity in Ukraine. Starlink has been crucial to both civilian and military communications there since Russia launched its full-scale invasion in February 2022.
Starlink connectivity in Ukraine was restricted last week following warnings from SpaceX and the US ambassador, although no direct link has been confirmed. Both US President Donald Trump and SpaceX founder Elon Musk denied responsibility for the restrictions.
On 17 October, Ukrainian President Volodymyr Zelenskyy said speed restrictions on Starshield, the military version of Starlink’s satellite service, remained in place and hindered Kyiv’s ability to intercept Russian drones. His remarks came days after he first raised concerns about the restrictions.
Also Read | Presidential adviser says Ukraine is in talks to lift speed limit on military satellite network
In an online group chat with reporters at the European Union summit, Zelenskyy said, "Unfortunately, we can't use Starlink or Starshield technology on our territory today to shoot down jet-powered Shaheds." He added, "They fly, and we can stop them with aircraft and other air defense, but we don't use Starlink for that, unfortunately. God willing, this will be restored."
Denying responsibility, Musk said, "Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS." Soon after, the US president said, "Well, I don't know if it was anybody because it wasn't me, and I don't think it was Elon."
Beyond Europe and Ukraine, Starlink has also faced controversy over its planned operations in India.
Earlier this month, SpaceX founder Musk escalated his criticism of Reliance Industries chairman Mukesh Ambani over delays to Starlink’s launch in India. After initially blaming unnamed “oligarchs” for blocking its entry, Musk asked on 8 October, “Is Ambani the real boss of India?” The following day, he addressed Ambani as “Prime Minister Ambani” in another post questioning whether Starlink would be allowed to compete.
The Ministry of Communications rejected allegations of discrimination, saying Starlink, Bharti-backed Eutelsat OneWeb and Jio Satellite Communications had received licences but were undergoing security assessments. It said all three were at broadly the same regulatory stage and could seek spectrum assignment after completing those checks.
As Europe explores an alternative to Starlink, the disputes highlight wider concerns over who controls satellite connectivity and how governments regulate access to it.
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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