EC Selects Two European Mobile Satellite Services Providers

May 14, 2009 // Published as a news service by IHS

As a result, the EC says European consumers and businesses, particularly in rural areas, can expect to benefit from innovative wireless communication services.

The services, such as high-speed Internet access, mobile television and radio or emergency communications, will be provided over a specifically reserved radio spectrum.

Both satellite operators demonstrated an advanced level of technical and commercial ability to provide these services.

Mobile satellite services will offer innovative wireless communications to millions of European Union (EU) consumers and businesses all over the Europe, thanks to portable terminals carried by a person or mounted on a car or a ship.

They can also help bridge the digital divide in the availability of high-speed Internet coverage in Europe, by reaching rural and less populated regions.

The EC's selection of two mobile satellite operators on May 13 concludes the first EU selection procedure for satellite operators launched in August 2008. Four operators were admitted to the selection phase in December 2008. With the assistance of independent experts, the EC analyzed the technical and commercial development of these mobile satellite systems in close cooperation with national authorities.

EU member states now have to ensure that Inmarsat Ventures Limited and Solaris Mobile Limited have the right to use the specific radio frequencies identified in the EC's decision and the right to operate their respective mobile satellite systems.

These providers have to be authorized to use their satellite systems all over Europe for 18 years from the selection decision. This is consistent with national practice in the sector and should allow investment to be recouped by satellite providers.

Satellite systems are characterized by high up-front investment, often more than hundreds of millions of euros. Commercial service should start within 24 months from this selection decision at the latest, subject to commitments to an earlier launch made by operators in their application.

"Mobile satellite services have huge potential: they can enable Europeans to access new communication services, particularly in rural and less populated regions. I therefore welcome that we have now cleared the way for the swift launch of these pan-European services," said Viviane Reding, EC telecoms commissioner.

"This was possible thanks to the first pan-European selection procedure, developed in close cooperation with the European Parliament and the member states. A Europe-wide market for mobile satellite services is now becoming a reality. I call on the member states to take without any delay all the required follow up steps in order to allow a timely and proper launch of mobile satellite services."

Indicative Time Line for Launch of Mobile Satellite Services in Europe

Background
On Aug. 22, 2007, the EC proposed an EU decision for the selection procedure for mobile satellite services to be organized at the European level (see IP/07/1243). Adopted by the European Parliament and the European Council on June 30, 2008, the decision established a single selection and authorization process to ensure a coordinated introduction of mobile satellite services in the EU.

The single selection procedure was launched by the EC on Aug. 7, 2008 (see IP/08/1250). Four companies submitted an application by Oct. 7, 2008. All four companies were admitted to the first selection phase in December 2008.

The EC, with the assistance of independent external experts, evaluated whether the applicants demonstrated the required level of technical and commercial development of their satellite systems. Such assessment relied on the satisfactory completion of five milestones regarding, for instance, the construction of the satellites or their launch.

The satellite systems of two companies, Inmarsat Ventures Limited and Solaris Mobile Limited, demonstrated the required level of technical and commercial development. No second selection phase was required, as the two candidates could be accommodated in the available spectrum.

The selected applicants will be bound by the commitments that they have undertaken, including commitments made concerning consumer and competitive benefits and geographic coverage.

Within 30 working days of the publication of the list of selected applicants, they shall inform the EC in case they do not intend to use the radio frequencies. The authorization of the selected applicants at the national level should be ensured as soon as possible and in accordance with the EC authorization rules.

For more information, see EC's web page on Mobile Satellite Services and Mobile Satellite Services in Europe: Frequently Asked Questions (MEMO/09/237).

Source: European Commission (EC).