Redistribution of Frequency Bands—The EU Declares 'Only One-Third for Non-EU Operators'
The competition for D2D (Direct-to-Device), where smartphones communicate directly with satellites without going through terrestrial base stations, has been spreading globally over the past year or two. In Japan, KDDI commercialized the world's first smartphone-to-satellite data communication in April 2025. As mentioned in previous articles, Rakuten Mobile and AST SpaceMobile have also already succeeded in video call demonstrations using low-Earth orbit satellites.
Frequency bands are what underpin this technology. On May 27, 2026, the European Commission (EC) announced a new allocation policy for the 2GHz band intended for Mobile Satellite Services (MSS). In renewing licenses that expire in May 2027, it will establish a framework where 'non-EU operators can use no more than one-third of the total'.
The current state of the 2GHz band and the positions of the two companies
Since 2009, two US companies have held the usage rights for this band across Europe. They are the current Viasat and EchoStar, which is in the process of being sold to SpaceX.
Viasat uses this band for the 'European Aviation Network (EAN)'. It is a system that provides in-flight broadband through a hybrid of satellites and terrestrial relay stations, and it has become the foundation for contracts with major European airlines.
EchoStar is proceeding with the sale of its spectrum to SpaceX, and in the US, the FCC approved the transaction, worth approximately $20 billion in total, in May 2026. SpaceX plans to use this band to deploy the next-generation 'Starlink Mobile' and envisions a service with 20 times the throughput using up to 15,000 satellites.
The 'three slots' designed by the EC
The current proposal divides this band into three equal blocks.
The first is a government-only communication slot premised on integration with IRIS², which can only be used by EU operators. The second is a slot for 'European commercial operators entering the EU market,' which is also limited to companies based in the EU. Non-EU operators like SpaceX and Viasat can only apply for the remaining one-third block.
The competition, which was effectively fully open until now, will change into a 'one-third competition.' The drop in numbers is quite significant.
Realistic changes occurring for SpaceX
Even if it receives the transfer of the frequency band from EchoStar, the same rights will not be automatically granted in Europe. Under the new rules, SpaceX must undergo a selection process as a non-EU operator within the same single slot as other companies. The 2x15MHz band slot currently held by EchoStar will also change to a maximum cap of 2x10MHz per operator under the new system.
Because it is selected through a comparative review method, factors such as the lump-sum bid amount, annual license fees, coverage achievement targets, and service launch speed will be evaluated. While SpaceX has an advantage in terms of track record and financial strength, the absolute amount of bandwidth it can acquire remains limited. BNP Paribas analysts have analyzed that the EU's proposal will place SpaceX in a 'structurally disadvantaged position in Europe'.
Viasat's problem is also serious from a different angle. The 2x15MHz slot it currently holds in Europe will disappear, and it will have to compete with other companies for the one-third slot as a non-EU operator. It may be forced to restructure its business to continue its EAN service.
The European initiative called IRIS²
The existence of IRIS² is the background to why the EU is acting so proactively. Its official name is 'Infrastructure for Resilience, Interconnectivity and Security by Satellite.' It is Europe's own constellation consisting of 290 satellites and is the EU's third space flagship project after Galileo and Copernicus. The total budget is 10.6 billion euros, and it aims for full-scale operation in 2030 following its first launch in 2029.
It is designed to handle the security of intergovernmental communications and provide broadband for citizens, including those in rural areas and remote islands. Securing one block of the 2GHz band for IRIS²-related use makes sense as part of Europe's path toward telecommunications infrastructure independence.
The fact that OQ Technology of Luxembourg is preparing an application for the same band with an eye toward entering the D2D market is likely because it has read the direction of this policy. The fact that AST SpaceMobile has established a local subsidiary in Germany and registered its D2D plans for Europe is also part of the same trend.
The geopolitics of radio waves
The EC proposal will now enter the approval process of the European Parliament and the Council. Backlash from the US side is naturally expected. In fact, the reason the FCC raised the issue of European regulatory trends as 'space protectionism' this spring was likely because it foresaw this development. The EC Commissioner for Digital stated that it is a 'transparent and fair proposal,' but negotiations before approval, including lobbying from SpaceX and Viasat, will surely not be straightforward.
D2D technology crosses borders. However, radio frequency licenses differ by country and region. Even as carriers in Japan move forward with the practical application of D2D services, the structural reality remains that regulatory questions regarding 'which band is allocated to whom' determine the potential of the business. What is happening in Europe shows us, a step ahead of other regions, how the geopolitics surrounding frequencies will impact competition in satellite communications.
Reference Articles
○Europe's Satellite Spectrum Proposal Clouds SpaceX and Viasat Plans (May 28, 2026)
○Brussels just quietly carved out two-thirds of a key satellite band for European operators (May 30, 2026)
○EU risks US ire with limits on 2GHz satellite spectrum (May 29, 2026)
https://www.lightreading.com/satellite/eu-risks-us-ire-with-limits-on-2ghz-satellite-spectrum
○OBSERVER: What is IRIS²? (February 2026)
○New Business Opened by Satellite Communications: The Arrival of an Era Where Smartphones and Space Connect Directly (August 29, 2025)
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