The Sky is Not Big Enough for Two Cartels

OPINION: Let's be clear about what is happening in the European telecom sector. The major players are suddenly very concerned about competition, but only when that competition comes from outside their inner circle.

As The Verge first reported, four of Europe's largest mobile carriers—Deutsche Telekom, Orange, Telefónica, and Vodafone—have signed a letter of intent to pursue a joint bid for spectrum. The goal? Creating a direct-to-device satellite service that can compete with SpaceX’s Starlink.

On the surface, the narrative is noble. The companies claim this initiative is designed to protect critical communications, strengthen public network resilience, and meet consumer demand for universal coverage in underserved regions. They are positioning themselves as the European alternative to Elon Musk's dominance in the stars.

But look closer at the mechanism. These four giants aren't actually building the satellites. The Verge reports that the carriers intend to manage the ground network infrastructure and coordination functions, while relying on a separate, currently unannounced satellite partner to provide the actual constellation.

As a consumer advocate, this smells like the same old playbook. We are seeing the formation of a coordinated bloc intended to carve up the sky. While they frame this as a move to support a "European constellation," it looks less like a competitive market and more like a cozy cartel trying to ensure that the gatekeeping of connectivity remains in the hands of the established incumbents.

This isn't an isolated trend of carriers huddling together. The Verge notes that in the United States, T-Mobile, AT&T, and Verizon announced a similar collaboration earlier this year to combine spectrum in dead zones and rural areas.

There is also a regulatory battle brewing. The Financial Times, as cited by The Verge, reports that the EU has considered reserving portions of the 2 GHz band specifically for local companies. SpaceX has already pushed back against this, arguing that such a move would negatively impact service in Ukraine.

Whether the threat is a single dominant player like SpaceX or a unified front of legacy carriers, the result for the consumer is often the same: less choice and higher prices. If Deutsche Telekom, Orange, Telefónica, and Vodafone successfully lock down the spectrum and the ground infrastructure, they aren't just competing with Starlink—they are ensuring that no other small, innovative player can get a foothold in the European market.

We should be wary when the carriers start talking about "coordination" and "joint bids." In the telecom world, that is usually code for "let's make sure none of us have to actually lower our prices to win a customer."