Two European satellite companies set to win S-band radio rights

Two European satellite companies — UK-based Inmarsat and Solaris Mobile, a joint venture between Luxembourg-based SES Astra and France’s Eutelsat — are expected to be given 18-year rights to S-band radio spectrum in 27 countries across Europe, leaving two US bidders, ICO Global Communications and TerreStar, empty-handed.

The S-band licence is potentially highly valuable. When you think about it, mobile phone operators have spent years gathering licences for pan-European mobile phone coverage, and now with a single license Inmarsat and Solaris Mobile grabbed the license in a snap.

According to analysts, the real value could come from satellite companies partnering with terrestrial mobile phone operators wanting to use the spectrum. This way satellite companies could rent mobile operators (and other interested parties, for that matter) more bandwidth for broadband services across Europe. Moreover, S-band could be a good way to get in the mobile space. Google (NSDQ: GOOG) instantly comes to mind as they have already invested in a company building satellite broadband coverage in Africa.

At the moment, there are no information whether a company such as Google will step up for a partnership, though.

[Via: FT]