Weekly Wrap: Everyone wants the European MSS band

Last week, I exclusively reported that Vodafone is interested in acquiring the 2 GHz MSSMobile-satellite service (MSS) describes a… band, which could be made available in Europe in late 2027. Since then, I’ve also learned that OQ technologies, a Luxembourg-based satellite company, is also keen to throw its hat into the ring.

I expect other satellite direct-to-device (D2D) providers are also keen. Many likely made their interest known in their responses to the European Commission’s consultation on the issue, which closed earlier this month.

The consultation was designed to gauge interest in the band. Unfortunately, the Commission hasn’t so far publicly released the responses, only suggesting that it “may” make non-confidential versions available “in the near future”. 

Nevertheless, it’s not difficult to imagine who else might want access to the band. Players like Skylo, Lynk, and Sateliot will likely want to get involved. The band’s existing incumbents, EchoStar and Inmarsat, will also want to hold onto their licences, further complicating the issue.

Just 2 x 15  MHz of spectrum will be available, likely only supporting two operators. This means Brussels will be faced with excess demand. Typically, spectrum managers would rectify this by running an auction.

However, it’s not clear if Brussels would be interested in holding an auction for this spectrum. The Commission has previously floated the idea of an EU-wide “selection procedure” for satellite spectrum. Yet Member States reacted with caution, keen to maintain access to spectrum rights, which they view as a sovereign asset.

Although auctions are considered the industry standard, in this case, an auction could also come with downsides. For one, most cash-rich satellite companies are US-based. This could cause European D2D competitors to miss out.

The European satellite startup market is vibrant, and there are many emerging satellite D2D companies, such as OQ Technologies and Sateliot, who are desperate for MSS spectrum. It would be controversial if these firms were to be denied access to spectrum by an expensive auction procedure.

The Commission could opt for a beauty contest instead. This was the method used when the spectrum was first assigned in 2008. At the time, however, there was far less competition for the band, with only four serious applicants.

A beauty contest would prove difficult, due to the immaturity of many satellite companies in the emerging D2D market. Startups like AST SpaceMobile and Lynk often make grand promises. But in reality, most have only launched a handful of satellites, and their plans and investments are far from certain. It would be difficult for the Commission to decide whose business is more realistic and who would make the most of the MSS band.

The Commission does have one advantage on its side: It has over two years to decide, at which point the commercial viability of satellite D2D companies should become clearer. But it should choose carefully how to move forward, and should strive to uplift European players while also ensuring efficient use of these scarce spectrum rights.

Here’s what PolicyTracker covered this week:

• European technical agency CEPTCEPT stands for the European Conference of… has published new rules that could pave the way for satellite IoT providers using LoRaWAN technology in Europe.
• Slovakia announced the results of its multiband spectrum auction, which raised €130 million more than expected.
• The UK regulator Ofcom has agreed to reduce annual spectrum fees, reducing the total cost by nearly 20%.
• The UK government pledged to fund satellite connectivity for trains in its recent 10-year infrastructure strategy.
• The responses to the European Commission’s call for evidence relevant to its planned Digital Networks Act have highlighted the numerous familiar grievances of established industry players.