Satellite frequencies

France and Spain want space reserved for EU firms in satellite frequencies

Brussels and EU capitals are mulling restrictions on non-EU players.

By Eliza Gkritsi

France and Spain have teamed up in a bid to reserve space for European companies in an upcoming spectrum auction for mobile satellite communications, effectively pushing out U.S. players.

The move comes as Brussels and EU capitals are mulling restrictions on non-EU players in a vast array of technologies from cloud computing to software, and grappling with the bloc’s reliance on U.S. and China-made tools.

In 2009 the European Commission issued licenses for the 2 GHz spectrum bands used for mobile communications to two U.S. companies, Viasat and EchoStar. Ahead of their expiry in 2027, the EU must decide whether to renew them or launch a fresh auction, setting new conditions on which companies can bid.

In a last-minute addition to the agenda for Thursday’s meeting of digital ministers in Nicosia, Spain and France said the EU must include satellite spectrums in its wider effort to set up a preference for homegrown technology, effectively excluding foreign-owned firms from critical sectors, according to a text seen by POLITICO.

“It is time to decide whether we want our skies to be stronger or dependent,” Spain's Digital Transformation Minister Óscar López told his counterparts on Thursday. "It is time to make European satellite industry great again."

“From the ground to the sky, infrastructures like telecommunications are a critical asset if we truly believe in digital sovereignty,” López said. The minister said national capitals must be closely involved in the auction.

European Commission tech chief Henna Virkkunen told reporters that the spectrum allocation will be "co-legislation" involving both the Commission and EU countries. Brussels is finalizing its proposal, which will come out “very soon,” she added.

Just this week Beijing threatened retaliation if Brussels limits the access of Chinese companies to the EU's critical tech sectors.

Virkkunen said any restrictions on the providers of critical tech infrastructure “will be a very, very tailor-made approach." She added any limitation “will look at each component and what kind of risk and how to mitigate the risks.”

The commissioner also pushed back against China's complaints, noting that Bejing is “also excluding some of the companies from their markets because of security reasons.”

Amid the debate over spectrum allocation, the EU is also considering how to deal with American companies like Elon Musk’s SpaceX under a new bloc-wide rulebook, which will ramp up regulatory oversight of satellite operators.

In an interview with POLITICO last month, Brendan Carr, the head of the U.S. communications regulator and an ally of U.S. President Donald Trump, warned Brussels against placing unacceptable regulatory burdens on successful American companies.