(Reuters) -Vodafone and AST SpaceMobile on Friday unveiledplans to establish a Europe-led satellite constellation to provide satellite-to-smartphone connectivity for commercial and government applications.
The constellation's European operational centre will be based in Germany, with potential sites near Munich or Hannover under consideration, the companies said. The initiative will be managed by a joint venture between the two firms.
Satellite service providers are pushing to offer mobile connectivity as broadband internet demand in underserved areas grows. The satellite-to-phone connectivity market could exceed $10 billion by 2033, according to Paris-based consulting firm Novaspace.
The German centre will provide connectivity for mobile network operators across Europe, supporting broadband services, public protection, and disaster relief, Vodafone and AST said.
The constellation will feature a "command switch" for oversight and security, including communication encryption and satellite control over Europe, they added.
STARLINK COMPETITION
The announcement comes after Elon Musk's Starlink signed a deal with telecoms group Veon on Thursday to deliver direct-to-cell connectivity that could give the SpaceX unit access to 150 million potential customers across Veon's markets.
SpaceX also acquired more U.S. spectrum licenses from EchoStar for $2.6 billion, aiming to expand its reach among mobile users.
AST SpaceMobile, which aims to deploy up to 60 satellites by 2026, currently operates six satellites compared to Starlink's fleet of more than 8,000.
New York-listed shares of AST SpaceMobile rose about 2% in premarket trading. Vodafone shares were largely unchanged in London.
Vodafone, an investor in AST, said operators in 21 European Union member states had shown interest in adopting the service that relies on satellites in space beaming telephone signals back to Earth.
Commercial operations for the constellation are slated to begin in 2026.
Vodafone CEO Margherita Della Valle said in the press release that this "sovereign satellite solution" would give operators in Europe access to secure satellite communications that would complement terrestrial networks.
(Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk, editing by Milla Nissi-Prussak)
