A handful of European telecom operators have held discussions to potentially create a consortium to bid on satellite spectrum and offer direct-to-device (D2D) service on the continent.

As reported by Bloomberg, Deutsche Telekom, Orange, Vodafone Group, and Telefónica would jointly bid for airwaves that the European Union (EU) has reserved for a European operator in an effort that could see the venture rival Elon Musk's SpaceX.

Europe wants to increase sovereign satellite capabilities in order to raise competition against SpaceX, which dominates the D2D landscape through its Starlink offering.

Bloomberg noted that no final decisions on the consortium or plans to bid have been made as of yet.

It comes as the EU is considering new rules around the distribution of 2 GHz spectrum that would keep a third of the band reserved for local companies. Such rules would bring a D2D service into play, an area which has been dominated by Starlink. The current licenses for the spectrum are due to expire in 2027.

Unsurprisingly, SpaceX opposed the EU's stance around limiting spectrum holdings in this band. The company has penned D2D deals with several mobile carriers in Europe, including Deutsche Telekom.

Vodafone notably has its own interest in D2D, forming a venture with U.S. satellite firm AST SpaceMobile. The companies signed an agreement last year to create a European D2D satellite service business.

A further third of the allocated spectrum is also being reserved for sovereign communication services provided by Infrastructure for Resilience, Interconnectivity, and Security by Satellite (IRIS²), the satellite constellation built by a consortium led by SES, Eutelsat Communications, and Hispasat.