EU to reserve two-thirds of satellite spectrum for European firms

The European Commission will reserve two-thirds of future mobile satellite spectrum for European companies, limiting access for Elon Musk's Starlink and Amazon's LEO satellite business.

The European Commission plans to allocate two-thirds of lucrative mobile satellite spectrum to European companies, restricting non-European rivals including Elon Musk's Starlink and Amazon's low-earth-orbit satellite business to the remaining one-third, people with direct knowledge said Tuesday.

"The allocation reflects a strategic push to ensure European sovereignty in satellite communications infrastructure," said a senior EU official familiar with the deliberations, speaking on condition of anonymity because the decision is not yet public.

The spectrum allocation covers frequencies for direct-to-cell mobile satellite services, a market that SpaceX's Starlink — which generated $11.4 billion in revenue in 2025 — has been aggressively pursuing. The decision comes as the EU seeks to prevent a single non-European player from dominating connectivity infrastructure, particularly after Starlink's constellation of roughly 10,000 satellites accounted for more than 60 percent of all satellites in orbit.

The move could reshape the competitive landscape for satellite broadband in Europe, a market projected to grow as governments and enterprises seek alternatives to terrestrial networks. European satellite operators including Eutelsat and SES stand to benefit, while Starlink and Amazon's Project Kuiper face restricted access to the continent's most valuable spectrum bands.

Starlink's Growing Leverage Raises European Concerns

The EU's decision follows mounting unease in Brussels over Starlink's expanding role in military and civilian communications. During the U.S. bombing campaign against Iran earlier this year, the Pentagon agreed to pay SpaceX almost double the original price for Starlink connections used on LUCAS kamikaze drones, according to Reuters. SpaceX had argued the military was underpaying at about $5,000 per terminal for a service it valued closer to $25,000, highlighting the pricing leverage Musk holds over government customers.

"The Pentagon's experience with Starlink pricing during the Iran conflict served as a cautionary tale for European policymakers," said Clayton Swope, a senior fellow at the Center for Strategic and International Studies. "When one company controls 60 percent of orbital assets, there are limited alternatives."

The EU's spectrum reservation mirrors a broader push by Brussels to reduce reliance on non-European technology providers, following similar measures in cloud computing and 5G telecommunications. The bloc's previous efforts to promote homegrown alternatives, including the Gaia-X cloud initiative, have yielded mixed results, with European providers still trailing U.S. hyperscalers in market share.

Who Benefits, Who Loses

European satellite operators Eutelsat and SES are the primary beneficiaries, gaining preferential access to spectrum that enables direct-to-cell services without needing ground terminals. The allocation gives them a structural advantage over Starlink and Amazon's Project Kuiper, which must compete for the remaining one-third of available spectrum alongside other non-European bidders.

For Starlink, the restriction comes at a sensitive time. SpaceX is preparing for an initial public offering next month that could be among the largest in history, and European spectrum access represents a significant growth vector for its direct-to-cell service. Amazon's Project Kuiper, which has yet to deploy its full satellite constellation, faces a narrower window to establish a European foothold under the new rules.

The European Commission is expected to publish the formal spectrum allocation framework in the coming weeks, with implementation beginning in 2027. The decision requires approval from the European Parliament and national telecommunications regulators across the bloc's 27 member states.

This article is for informational purposes only and does not constitute investment advice.