Musk's Starlink is at the doorstep, and Europe's four major telecom giants are teaming up to fight back by bidding for satellite spectrum.

Several major European mobile operators have reached a consensus to form an industry consortium to bid for satellite spectrum and launch direct-to-device satellite services, in a bid to counter the competitive pressure from Elon Musk's Starlink. According to a statement released on Monday, Deutsche Telekom AG, Orange SA, Vodafone Group Plc Sponsored ADR (VOD.US) and Telefonica SA Sponsored ADR (Telefonica SA) are exploring a joint bid for some of the spectrum resources the EU plans to reserve for local operators. According to prior reports, the goal of this plan is to enhance Europe's autonomous satellite capabilities. It is understood that this cooperation model benchmarks the partnership agreement reached among U.S. operators AT&T (T.US), Verizon (VZ.US) and T-Mobile (TMUS.US), a subsidiary of Deutsche Telekom. Musk's SpaceX is steadily advancing a competing mobile business, planning to provide similar services relying on the Starlink satellite constellation. The EU is weighing new rules for satellite access in the 2 GHz band, planning to reserve one-third of the band for local companies and another third exclusively for emergency critical communications. The EU hopes to reduce dependence on American companies for strategically important technologies. The new rules will govern direct-to-device satellite services, a field currently dominated by Starlink, which can provide text messaging, data and voice call services directly to ordinary mobile phones via satellites in orbit. Spectrum licenses currently held by ViaSat, Inc. (VSAT.US) and EchoStar Corporation Class A (ECHO.US) will expire in 2027. The four operators will build ground infrastructure and operating systems, and then partner with a satellite provider yet to be selected to enhance their own network coverage and sell coverage services on a wholesale basis. U.K.-based Vodafone Group Plc Sponsored ADR has previously formed a joint venture with U.S. satellite company AST SpaceMobile (ASTS.US), which also provides direct-to-device satellite services. The statement said the potential joint bid will not replace existing partnerships already established between mobile operators and satellite providers.