Major European operators are accelerating partnerships to avoid being sidelined by Starlink, the low-Earth orbit constellation operated by Elon Musk’s SpaceX.
Three of the continent’s leading telecom groups — Telefónica, Orange and Vodafone — have announced collaborations with AST SpaceMobile to explore direct-to-device (D2D) satellite services, enabling standard smartphones to connect directly via space infrastructure.
Telefónica backs Satellite Connect Europe
At Mobile World Congress, Telefónica unveiled an agreement with Satellite Connect Europe (SCE), a joint venture between AST SpaceMobile and Vodafone.
Headquartered in Luxembourg and managed from Europe, SCE aims to complement — not replace — terrestrial mobile networks. The deal will explore satellite integration into Telefónica’s networks in Spain and Germany, operating under European regulatory and spectrum frameworks.
SCE is investing in ground stations in Germany, the UK, France and Spain, supported by a control centre in Germany, a satellite production facility in Barcelona and a test lab in Málaga. AST’s satellites — including its latest Bluebird 6 model — feature some of the largest antennas in low Earth orbit, designed to capture weak smartphone signals and relay them to ground stations, where terrestrial networks complete the connection.
Orange prepares D2D trials
Orange has also signed agreements with AST and SCE. The French operator plans to run D2D satellite demonstrations in Romania in the second half of 2026, covering voice, SMS and data.
Beyond connectivity tests, Orange and AST are studying integration into an operator-managed core network, aligning with European security and compliance requirements.
A different strategy from Starlink
AST’s model is partnership-driven: it relies on existing telecom operators to distribute services and route traffic through terrestrial networks. Its shareholders include Vodafone and Japan’s Rakuten.
Starlink, by contrast, is pursuing a more disruptive path — aiming to interact directly with mobile devices and potentially bypass traditional operators altogether. With more than 8,000 satellites already in orbit and strong launch capacity, SpaceX has scale on its side.
For now, Starlink’s system performs best in rural, offshore and remote areas, where conventional coverage is weak. Its current capacity limits make dense urban coverage more challenging — but European operators are clearly unwilling to wait and see how that evolves.
Keeping options open
Despite concerns, some operators are hedging their bets. Orange’s Spanish subsidiary, Masorange, has launched a Starlink pilot in Valladolid to improve coverage in underserved areas. Meanwhile, Telefónica’s UK joint venture Virgin Media O2 (VMO2) has also signed a deal to use Starlink to reinforce rural connectivity.
The message from Europe’s telecom giants is pragmatic: satellite connectivity is no longer optional. The real question is who controls the customer relationship — and whether space becomes a complement to mobile networks or their most serious competitor yet.
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