European regulators have opened a new front against Starlink — and the weapon is not a lawsuit but a spectrum plan.

A proposal from the European Commission would divide a valuable slice of satellite airwaves so that European companies and governments receive priority access. SpaceX, Elon Musk's company that operates Starlink, would be left waiting for whatever remains.

The spectrum being divided

At the center of the dispute is the 2 GHz mobile satellite services band, known in the industry as the MSS band. Use of these frequencies is restricted to licensed operators, and only two companies currently hold the keys: US firms Viasat and EchoStar. Their licenses are due to expire in May 2027. That expiry hands regulators a scheduled moment to reshape who gets access next, rather than simply rolling existing rights forward.

The band carries particular weight because of direct-to-device connectivity, or D2D — the ability of a satellite to communicate directly with an ordinary smartphone, with no ground tower in between. The technology has become a contested frontier between the satellite and telecom industries, and suitable spectrum is the scarce resource that decides who can compete in it — and, for users, which networks their phones can reach by satellite.

Under the Commission's proposal, dated May 27, 2026, the band would be divided into three parts:

• One reserved for government use, through IRIS², the EU's planned satellite constellation.
• One set aside for newly established EU-based commercial entrants.
• One left open to all operators, including non-EU players such as Starlink.

By that arithmetic, two-thirds of the band would end up reserved for European operators and government use. Starlink would be free to compete for the remaining third — but alongside everyone else.

Telecom giants line up, and Washington pushes back

European carriers have already begun organizing. On October 19, 2026, Deutsche Telekom, Orange, Telefónica and Vodafone said they may pool resources to go after spectrum rights together. The plan under discussion is to offer wholesale D2D services across Europe: the carriers would jointly secure the airwaves and then sell satellite-to-phone access, rather than each building its own system from scratch.

Washington has reacted sharply. The US ambassador to the EU warned of possible "devastating" retaliation if the plan ends up hurting American companies — with SpaceX the obvious company in mind.

SpaceX, for its part, has warned that the EU proposal could degrade satellite service quality in places like Ukraine. The company has also cautioned that the changes might create interference risks worldwide. The objection leans on how satellite spectrum works: the signals cross borders, so frequency decisions taken in one region are felt in others.

Why Europe wants its own lane

The broader objective is strategic independence. The EU wants a homegrown alternative to Starlink, and reserving spectrum for local operators is the quickest lever at its disposal. Building satellites takes years and enormous capital; writing spectrum rules takes a proposal and a vote. Brussels is using the tool it controls while IRIS² works its way toward reality. The constellation is intended to give the bloc sovereign communications capacity of its own, and the spectrum plan extends that logic to the commercial D2D market.

What this means for the players involved

For SpaceX, the risk is being squeezed out of a large, wealthy market by policy rather than by product. Starlink can still compete for the open third of the band, but entering with one-third of the access while rivals enjoy protected lanes is a difficult starting position.

Viasat and EchoStar find themselves in an awkward spot as well. Their existing licenses run out in May 2027, and the new framework clearly favors newcomers based in the EU.

Three developments bear watching from here. First, whether the Commission's proposal survives negotiations with EU member states intact, or gets softened under US pressure. Second, whether Deutsche Telekom, Orange, Telefónica and Vodafone turn their exploratory talks into a formal joint bid. Third, whether SpaceX escalates its warnings about Ukraine and interference into a formal challenge.