Satellite mobile communications: Telekom challenges Starlink

Telekom appearance at Mobile World Congress: cooperation with Starlink planned for 2028

With a joint effort, European providers are planning to build their own communication network based on satellites. Deutsche Telekom announced on Monday that it wants to apply together with Vodafone, Telefónica and Orange for radio frequencies that enable direct mobile connections into space.

The relevant frequencies will be issued by the European Union next year and will be available from 2029. Although it has been speculated for some time about corresponding plans of the mobile phone providers, due to a development in the USA, the project has got new urgency. Recently, Elon Musk’s SpaceX group agreed to purchase a nationwide portfolio of mobile spectrum to sell mobile services directly to end customers. The announcement resulted in the US mobile service providers, including the Telekom subsidiary T-Mobile, losing share.

Until now, satellite services have only been understood by mobile service providers as a supplement to traditional mobile networks. For example, to enable emergency calls in remote areas or to close gaps in coverage in the conventional radio network. In March, Telekom also announced a corresponding offer based on Starlink's satellite network, in which terminals can communicate directly with satellites. Most smartphones have not yet integrated the necessary direct-to-device (D2D) technology, but in the coming years it is likely to arrive in the mass market.

However, as Elon Musk showed increasing interest in direct competition with the cooperation partners, the tone intensified. In August, Telekom CEO Tim Höttges was demonstratively certain that satellite communications could not replace normal radio towers. The detour via orbit has considerable disadvantages: Since the signal has to cover far greater distances, it becomes significantly weaker on the way. Therefore, it cannot be ensured that the reception also works in closed buildings.

In fact, SpaceX already presented plans for a kind of hybrid network in the summer. The satellite receivers sold by Starlink to customers could act as miniature towers to supply the neighbourhood. What this would cost and what coverage would be achieved with such an infrastructure is still unclear.

European providers, on the other hand, want to continue to focus on their existing infrastructure. They would use satellite technology to achieve widespread coverage in otherwise underserved areas, strengthen resilience of mobile networks, protect critical communications and support the development of a European satellite constellation, the companies involved said.

One reason for the satellite initiative is the shutdown of the 2G network announced in 2028. Although the technology was able to cover large areas, it achieved low data transmission rates. If the technology is switched off, this opens new radio holes in Germany. According to the Federal Network Agency, Deutsche Telekom accounted for 1.2 percent of Germany’s area in June, Vodafone 1.7 percent and O2 Telefónica 1.6 percent. In such areas, mobile phone users could in future be connected to the communication networks via satellites.

European mobile service providers want to provide the infrastructure on the ground themselves. Who should take over the operation of the satellites is unclear. That it will be Starlink seems unlikely at the moment. Nevertheless, the announcement does not mean that Telekom is dropping its Starlink plans. The joint bid does not replace existing satellite partnerships, stresses the Group.

European providers can imagine good opportunities to be taken into account in the forthcoming frequency allocation. The European Commission had already announced in May that not only US providers should have access to corresponding frequencies. The US government has already announced opposition to the plans.

As the Financial Times reported over the weekend, the US ambassador to the EU, Andrew Puzder, has already threatened retaliation if US providers lose access. SpaceX also warned that the plans could affect the Internet supply of Ukraine. There Starlink is used in particular for military communications.