For satellite, there is no such thing as a Single European Market

Raising the money to build and launch a satellite or constellation is undoubtedly a formidable task; however, obtaining the necessary approvals and licenses is far from a walk in the park, either. Nowhere is this more true than in Europe where, even though 27 of the 45 countries are members of the European Union (EU), there is no such thing as a single license to operate.

Securing market access and flexible licensing conditions are obviously key to the success of any business plan. No operator launches a satellite or satellites with the aim of doing business in only one country.

In Europe, obtaining the necessary licenses and permits can be an easier and faster process in some countries than in others. These countries are generally referred to as ‘light-touch,’ as opposed to other ‘heavier-touch’ countries, where the entire process is more time-consuming and complex. And that is why it is in a company’s best interests to work with a trusted adviser, familiar with the different processes and applicable regulations in each country, to smooth the way, and help obtain some initial wins. Not only is this work crucial before network or service deployment, it may also be important to securing investment.

There are essentially three key elements that regulate and authorize satellite services in Europe. Firstly, and most commonly, a spectrum filing with the International Telecommunication Union (ITU) (duly coordinated or in the process of coordination) is required.

Secondly, the rights to use that spectrum within a country’s territory for the intended purpose, under the national frequency plan or through individual license if applicable, must be secured. As a scarce national resource, each country can apply its own modalities, processes and fees to regulate the use of radio spectrum within its territory. Thirdly, an authorization for the provision of telecommunications services or networks (ECS or ECN) is needed.

In EU countries, the frameworks for ECS and ECN licenses are generally harmonized, owing to well-established EU Regulations or Directives which set out a ‘general authorization’ approach (in particular, the EECC Directive 2018). Under this approach, any operator can provide its services across the EU without requiring an individual country license, subject to self-assessment and compliance with the applicable regulatory conditions under the national telecoms framework. However, national regulators may still require an administrative filing, such as the registration or prior notification by operators as a condition to start services in their territories.

In December of 2019, the Body of European Regulators for Electronic Communications (BEREC) published a template for national notifications to further streamline the process. This can now be completed in a few weeks... if everything is completed correctly.

Light-Touch Countries

Even in the ‘light-touch’ countries, where the authorization process is more streamlined, the applicable regulations and operating conditions can still be complex and achieving market access and regulatory compliance is never a forgone conclusion.

Certain legal, technical and financial criteria need to be adhered to, and ongoing requirements met (e.g., administrative reporting). Therefore, it’s always advisable to engage with the appropriate regulatory authority early in the planning stages, to understand and comply with the necessary regulations. Regulations may, of course, change at any time, particularly in the current age of rapid technological change.

Light-touch countries mostly apply the general authorization approach for regulating ECS or ECN, as referred to above. This group includes a number of countries, for example, Belgium, Czech Republic, Estonia and Ireland, among others. However, this may not preclude the necessity for a routine, in-country filing as a service or network provider.

Light-touch countries usually do not require a specific license to operate in certain recognized satellite service frequencies. For frequencies recognized under general allocation plans (e.g., for MSS or FSS/ESIM), the regulators typically allow use of these frequencies by the ground-based user terminals or hubs on a ‘license-exempt’ basis. This is based on adopting certain decisions of the CEPT Electronic Communications Committee (ECC), which lay down ‘free circulation’ of terminals provisions, as well as other conditions under national or EU Regulations. These may include safety requirements set by the European Telecommunications Standards Institute (ETSI).

The other big advantage of a ‘light-touch’ country is that the fees payable are nominal. The annual ECS/ECN notification or registration fee is usually quite low; no more than a token, few hundred euros, and thereafter, an annual revenue- based fee based on certain thresholds being reached — in example, a fee of 0.5% of revenue once an operator’s earnings are greater than 5 million euros).

Heavier-Touch Countries

In the ‘heavier-touch’ countries, the situation is quite different. These countries require the satellite network operator to apply for and obtain individual licenses for the frequencies used between their satellites and the terminals operating in their territories. This group includes some of the geographically larger countries in Europe, such as France, Germany, Italy and Spain. Therefore, any operator looking to enter the European market must usually navigate these procedures.

To start the process, interested applicants must clarify the requirements and identify the applicable forms (which are not always publicly available). In addition, some countries, Italy and Spain for example, may require certain pre-requisites to be fulfilled, including registration or authorization either as an ECN and/or ECS provider. This usually involves more detailed requirements and procedures than in the ‘light touch’ countries. These may include the provision of detailed corporate, technical and financial information, which may require translating into the national language of the country in which the application is being made, and also notarization or legalization with an apostille. Foreign satellite operators without an EU-based subsidiary may face additional bureaucracy.

Registration fees for an ECN or ECS are often higher than in ‘light-touch’ countries and may include a yearly payment, based on the number of planned ground terminals or stations, in addition to revenue. This annual fee can run to many thousands of euros and apply from day one of operations.

Operators in some of these ‘heavier-touch’ countries may also be required to ensure that data can be localized nationally, or that lawful interception of signals can be implemented in the event of an appropriate order from the government or law enforcement authorities.

As well as the particular requirements relating to telecommunications, depending on the country, it is also likely that adherence to certain environmental, social and governance (ESG) standards may be specified or requested. Also, if an operator’s devices and telecoms services involve the use and assignment of numbers, an additional layer of regulations and procedures may apply for the national numbering resources.

Usually, once the requisite approvals have been issued, it is the end of the matter, but this is not always the case. Starlink was granted an internet license in France in 2021, only to have it revoked in 2022, and then reissued a couple of months later. In this instance, the license was revoked following a court case in which two environmental groups cited the potential impact on the environment, including light pollution from the constellation. The court’s decision, however, was based around concerns that vertical integration by SpaceX (Starlink’s parent company), could distort the ‘economic balance’ of multiple sectors, including satellite manufacturers, launch providers, ground equipment manufacturers and telephone operators.

The regulator was ordered to conduct a public consultation. This lasted for two months, at the end of which the regulator determined that there was an overriding need for the service in areas not well covered by terrestrial services, so the license was reinstated.

As mentioned at the start of this article, navigating the different regulations and obtaining the required licenses across Europe is necessary and complex. Working with an organization, such as River Advisers (formerly known as ManSat) that has years of experience in this area, will assist a company get through the process successfully and also help it estab;osh appropriate priorities in order to realize its business goals.

River Advisers, formerly known as ManSat, have years of experience in market access and spectrum filing services. Alexis Martin, Chief Consulting Officer at River Advisers and the author of this article, has been supporting regulations, policy and spectrum matters for the satellite industry for over 20 years and leads the Consultancy, Strategy and Market Access area of the business.

More specifically, Market Access falls under the expertise of Matthew Evans, Director of Regulatory Affairs at River Advisors. Matthew has over 10 years’ global market access experience in the satellite industry, including several years licensing the world’s first hybrid satellite/ terrestrial, pan-continental aviation connectivity network, and the industry’s largest European licensing initiative of the last two decades, involving multiple stakeholders and national regulators.
www.riveradvisers.com