The new EU Regulation on Satellite Communications: building momentum for Europe’s space economy

On 27 May 2026, the Commission published a proposal for an EU Regulation (the "Proposal") to establish an EU-level authorisation for the provision of mobile satellite services ("MSS") using the harmonised 2 GHz frequency band which attempts to set the condition to enable the next generation of satellite-enabled mobile connectivity in Europe: it represents a new opportunity in the European market at a time where previous legislative proposals both at the EU level and in individual Member States wish to further encourage and enable the growth of space activities and related industries.

The Proposal seeks to move from fragmented national implementation arising from the current legal framework – mainly represented by Decision No. 626/2008/EC – to a Union authorisation model by establishing a comparative Union procedure to select holders of rights of use in the 2 GHz MSS band and authorising them to use that spectrum across all Member States under common conditions. Under the new framework, selected operators would no longer need to navigate 27 separate national authorisation regimes for the relevant band.

Nevertheless, these opportunities come with complex eligibility requirements, security obligations, financial contributions, competition safeguards and potentially significant compliance costs.

Three procedures, one strategic spectrum resource

The Proposal provides for a comparative selection procedure at EU level for the assignment of six paired 5 MHz blocks in the 2 GHz MSS band, structured around three tracks: a secure MSS/hybrid system, commercial MSS systems operated by “Union new entrants”, and commercial MSS systems also open to other applicants. This reflects the Commission’s objective of promoting diversification of suppliers, reducing strategic dependencies. To address the position of the incumbent right-holders – Viasat and Echostar – their existing rights may be extended only once for a two-year period under applicable conditions, to ensure continuity of service, subject to a prohibition on transferring, leasing or sub-leasing them.

More in particular, the Proposal establishes an admissibility phase, a first selection phase and, where necessary, a second selection phase.

In the admissibility phase, requirements vary depending on whether applicants are competing for the secure MSS/hybrid system or commercial MSS systems. Access to both systems is conditional on stringent establishment requirements to preserve technological sovereignty, maintain corporate executive and operational control within EU borders and avoid third-country jurisdiction, for example by ensuring that data transmitted through the system is not subject to legal obligations allowing access by non-EU authorities

Forty working days after publication of the list of admissible applicants, the Commission would open the first selection phase, vetting eligibility requirements and ranking eligible applicants against the selection criteria, which may be further specified in the call for applications.

The eligibility criteria would require applicants to demonstrate deployment, financing, technical capabilities as well as robust supply-chain arrangements, compliance with key preparatory milestones and the ability to meet ambitious coverage targets across Member States. The Commission would analyse aspects such as corporate structure, spectrum strategy, industrial execution and security compliance to assess candidates' eligibility. For the secure MSS/hybrid system, this assessment would be even more demanding, as the proposal places even greater emphasis on the security of governmental communications and the protection of sensitive information within a trusted European framework.

With regard to the duration, rights of use in the 2 GHz MSS band are to be granted for 20 years, renewable once for a similar duration and on similar terms, unless the Commission decides, at least five years before expiry, not to renew and instead to organise a new open, transparent and non-discriminatory selection and authorisation procedure. The Proposal also provides for an intermediate efficiency check: five years after the EU authorisation is granted, the Commission may withdraw the right of use if it finds that the spectrum is not being used efficiently.

The Commission would publish a call for applications, assess their completeness and compliance with admissibility requirements, and may request additional information within a deadline of between 5 and 20 working days.

A new market for direct-to-device services

From a commercial standpoint, the Proposal is particularly relevant for direct-to-device ("D2D") communications. The Commission considers the 2 GHz MSS band is well suited for EU operators to develop such cutting-edge services: as the band is harmonised for both MSS and terrestrial mobile use and lends itself to integrating terrestrial and non-terrestrial networks, operators with access to it can combine these features to deliver innovative D2D connectivity while still offering satellite services for terrestrial systems.

The Proposal's competition-oriented obligations confirm that competition enforcement would remain front and centre of the Commission's oversight. Holders of commercial MSS authorisations would be required, upon request, to grant wholesale access on objectively justified, non-discriminatory, proportionate and transparent terms and would be barred from certain exclusive agreements where they hold a significant share of wholesale or retail MSS services in a Member State.

Depending on the specific commercial arrangements, the Proposal could foster a new market for D2D services, bringing together satellite operators, mobile network operators and public-sector-users, though its success in Europe may depend on how factors such as capacity, roaming and service levels are regulated.

Financial contributions, compliance and enforcement

Under the Proposal, applicants would be required to propose a one-off financial contribution, and right-holders would also pay annual fees. The Commission would determine the minimum level of one-off contributions and the methodology for annual fees through implementing acts.

However, financial contributions should not be the predominant basis for selection: under Recital 29, the EU's indirect benefits from developing a satellite project and providing satellite services in the band outweigh the revenue raised. Because the award process is intended to assess the added value and efficient use of spectrum, the weight given to the one-off contribution may be reduced in favour of other parameters.

The Commission, together with Member States and relevant committees, would monitor compliance with authorisation conditions, Union law and ITU Radio Regulations. In the event of a breach, the Commission may adopt corrective measures, suspend or withdraw authorisations and impose fines or periodic penalty payments. The Proposal also requires significant technical evidence: the annex sets out milestones relating to ITU compliance, satellite manufacturing, launch agreements, gateway earth stations, successful launch and in-orbit deployment, and the continuous provision of MSS across Member States.

Next steps

The Proposal is still at an early stage, and several key aspects are likely to change during the legislative process, including the detailed selection criteria, their weighting, the financial contribution methodology and the authorisation conditions. Nevertheless, as with recent EU initiatives in fields such as AI and digital infrastructure, the direction of travel is clear: the EU is seeking to reduce fragmentation, strengthen strategic autonomy and create common market rules for high-value technologies. Read alongside the EU Space Act and the proposal of the new Digital Networks Act, the Proposal is a further step in the Commission’s effort to harmonise and unlock the still-fragmented EU space market, and the 2 GHz MSS Regulation may well become one of the key building blocks of Europe’s next-generation satellite connectivity market. However, it remains to be seen how the Proposal will interact with other emerging EU regulatory instruments, particularly the proposed Digital Networks Act, which envisages the granting of spectrum rights under common EU conditions across all satellite spectrum bands of EU-wide relevance and which the Proposal itself expressly describes as a corollary.

For satellite operators, telecoms players, manufacturers and investors, this means that preparation should not wait for the call for applications to be published. Potential applicants and partners should already be assessing whether – and to what extent – they need to adapt their corporate structure, supply chain and deployment capabilities to the level of scrutiny the Proposal envisages. Projects targeting the secure MSS/hybrid track will need to be designed from the outset around governmental use cases, resilience, EU-based capabilities and long-term operational control.

The Proposal may also accelerate a new phase of commercial arrangements around satellite D2D services. Market operators, wholesale providers and government entities should consider how capacity, roaming, service levels, emergency communications, cybersecurity and customer ownership will be allocated in future partnerships.

Authored by Giacomo Bertelli, Margherita Carere, and Alessandro Bacchilega.