Deutsche Telekom, Orange, Telefónica, and Vodafone have signed a letter of intent to explore jointly bidding for radio spectrum to provide direct-to-device satellite mobile services in Europe. According to Sina Finance, the European Commission proposed in May reserving some spectrum for European companies; the 2GHz band is currently used by U.S. companies Viasat and EchoStar, whose licenses expire next year.

The proposal has become a point of friction between the United States and Europe. The U.S. ambassador to the European Union said last week that European companies could face “devastating” retaliation if the proposal is not changed, arguing that it discriminates against U.S. companies such as Starlink. SpaceX has also criticized the plan, warning that it could reduce communications quality in Ukraine.

The four telecom operators plan to build ground infrastructure and partner with an existing satellite provider, which has not yet been selected; they do not plan to build their own satellite constellation. Starlink has more than 11,000 satellites in orbit. Goldman Sachs analyst Andrew Lee said the initiative sends investors a reassuring signal that European operators view satellite communications as complementary to terrestrial networks, while European regulators seek dedicated spectrum for European companies.