EU satellite spectrum plan favors IRIS2 and limits Starlink
The European Commission is finalising a plan to reserve two-thirds of the 2 GHz mobile satellite band for European companies. This EU satellite spectrum move aims to reduce dependence on US-controlled satellite networks and improve “technological sovereignty” amid geopolitical tensions.
Under the proposal, Elon Musk’s Starlink and Amazon’s Kuiper would be limited to the remaining one-third of the band. The band (1980-2010 MHz and 2170-2200 MHz, 30 MHz pair) supports direct-to-device connectivity for phones and vehicles. Licences issued in 2009 to Inmarsat (now part of Viasat) and Solaris (now EchoStar) expire in May 2027.
The biggest beneficiary is IRIS2, Europe’s 290-satellite constellation built by the SpaceRISE consortium (SES, Eutelsat, Hispasat). IRIS2 has a 12-year contract signed in December 2024 at about €10.5 billion, with roughly €6.5 billion from public funding. Government services are expected to start in 2030.
Internal EU debate remains: one commissioner wanted a full lockout of non-European operators, but opposition from tech chief Henna Virkkunen led to the two-thirds compromise. A formal announcement is expected Wednesday, though details could still change. Because US-listed incumbents (Viasat and EchoStar) may be treated as non-European bidders, they could face reduced access despite holding the current licences.
Neutral
This is a telecom and space-policy decision, not a direct crypto regulation or market-structure change. While EU satellite sovereignty moves could marginally affect the broader tech/infrastructure sentiment (and thus risk appetite for the market), there’s no clear transmission mechanism to token prices, liquidity, or on-chain activity.
Similar to past government telecom licensing/sovereignty actions, traders typically treat the headline as long-cycle policy rather than an immediate catalyst. In the short term, any impact would likely be limited to sentiment around “tech sovereignty” themes; in the long term, the real effect would be via commercial execution timelines (e.g., IRIS2 services starting around 2030), which is too distant to directly reprice crypto risk now.
Therefore, the expected market impact is neutral: it may shape macro/tech narratives, but it should not materially alter crypto trading flows or stability on its own.