EU Proposes Satellite Spectrum Rules Reserving Two-Thirds of 2 GHz Band for European Operators — Limits Starlink Expansion

The European Commission proposed landmark satellite spectrum rules on May 26–27, 2026 that would structurally limit non-European LEO satellite operators including Starlink from acquiring spectrum in the 2 GHz band designated for Direct-to-Device (D2D) services. Under the proposal, the 2 GHz band would be divided into thirds: one-third reserved for EU government services, one-third set aside exclusively for new EU-based market entrants, and one-third available to established operators including both EU-based and non-EU companies like SpaceX's Starlink. The proposal effectively bars Starlink from competing on equal terms with European incumbents in the D2D spectrum market. Bloomberg reported the measure directly responds to concerns within EU institutions about the dominance of US-owned Starlink in European satellite broadband — notably heightened after Elon Musk's political involvement in European elections and growing European 'technological sovereignty' discussions. Euronews characterized the proposal as 'the EU favouring European satellite services to prevent Musk's Starlink expansion.' Actual spectrum auctions will not begin until existing 2 GHz licenses expire in 2027. For digital inclusion, the proposal has mixed implications: it may accelerate European investment in EU-based satellite alternatives but could delay affordable LEO D2D service availability for underserved populations in Eastern Europe, the Balkans, and EU candidate nations where Starlink has been an important bridging technology.