EU to squeeze US space tech out of prized satellite airwaves

BRUSSELS — The European Commission wants to reserve most satellite frequencies for European operators when a prized spectrum band opens up next year, opening a new battleground with Washington in the fight for control over technology.

European Commission top officials on Wednesday agreed on the details of the selection procedure, earmarking two thirds of a coveted spectrum band for EU players. 

"Spectrum is becoming very important for us when we speak about our connectivity, also our secure connectivity, but also for the economic purposes,” the EU's tech and security czar Henna Virkkunen told reporters after a meeting with EU commissioners in Brussels. 

The decision risks angering Washington, just days after EU institutions reached an agreement on the details of a new EU-U.S. trade deal. It will limit the frequencies available to U.S. companies, including Elon Musk’s SpaceX and Amazon Leo, and curtail their fast expansion.

In practice, it would mean moving from a frequency range currently controlled by American companies to one in which they would get, at the very best, a third.

Virkkunen defended the decision, saying: "We really want to also boost our European capacities in this sector, but at the same time we are also remaining open." She called the proposal "very transparent and fair" and referred to an earlier decision in the U.S. to grant similar frequencies to a U.S. operator while a “European operator, who was interested to have access there, was denied.” 

The EU wants to split the available frequencies into three blocks of 10MHz for the next 20 years. One will be reserved for secure government communications including through the EU's flagship constellation IRIS², one earmarked for European startups and a third could be allocated either to European or non-European companies.

POLITICO reported key details of the proposal on Tuesday, ahead of its unveiling.

Previously, the spectrum licenses have been granted to Viasat and EchoStar, two American space operators, since 2009 for mobile communications and are set to expire in 2027. The licences, upon request, could be extended for another two years. 

“It is time to decide whether we want our skies to be stronger or dependent,” Spain’s Digital Transformation Minister Óscar López said at a meeting of the EU’s digital ministers last month, backed by France in calling to save the coveted frequencies for European companies in the name of sovereignty. “It is time to make European satellite industry great again.”

The decision will give an edge to European industry, which is increasingly betting on satellites to provide mobile communications and broadband from low-Earth orbit and fill coverage gaps across Europe. It would also land just before the EU is expected to present a much-anticipated tech sovereignty package of proposals to reduce the bloc’s reliance on foreign technology.

The Commission, through secondary law, could also open the EU-oriented frequencies to “geographically neighbouring countries” like the United Kingdom and Norway, the proposal said.  

But squeezing U.S. firms out of the band could trigger retaliation from Washington. The head of the U.S. communications regulator previously warned against measures seen as unfairly discriminating against American space companies.

“In the changing geopolitical situation, EU-wide satellite connectivity becomes synonymous with resilience, security, and capability,” Commission spokesperson Thomas Regnier told POLITICO in a statement on Tuesday. “Satellite connectivity is a key piece of our technological sovereignty, our security, and our defence, as also highlighted by IRIS2,” he added, referring to the EU’s future satellite constellation to provide secure and high-speed broadband capacity.

Space Commissioner Andrius Kubilius called for the flagship project to get a slice of the frequencies in an interview with the Financial Times last week.

The proposal will still have to be negotiated by lawmakers in the European Parliament and EU governments in the Council. The Commission could also propose extending the current licences to give institutions time to agree on the new allocation procedure and put it into effect.

This article was updated to include details of the published proposal and comments by Commission Executive Vice President Henna Virkkunen.