The low-orbiting Bluewalker 3 prototype, from which a smartphone will seek connectivity if none is available via the terrestrial network. Photo: AST SpaceMobile

The low-orbiting Bluewalker 3 prototype, from which a smartphone will seek connectivity if none is available via the terrestrial network. Photo: AST SpaceMobile

Vodafone and AST Spacemobile on 30 June announced that their new joint venture, Satco, would give birth to a mobile satellite service in Europe from its headquarters in Luxembourg. The move, welcomed by the Luxembourg authorities, is part of a strategy to build a resilient digital infrastructure spanning mountains, seas and remote territories.

Imagine receiving a call or launching a video in the heart of a dense forest on a day of demonstrations against pension reform, without the slightest 4G/5G relay on the ground. This is exactly what Vodafone and AST Spacemobile are making possible with their new Satco joint venture, based in Luxembourg. This groundbreaking project promises connectivity everywhere, all the time, using satellites directly to connect to our smartphones “as usual.”

“Satco’s headquarters in Luxembourg strengthens our role as a hub for the deployment of innovative solutions serving the entire European single market,” said the minister for the economy, SMEs, energy and tourism,  (DP).

“Guaranteeing universal mobile coverage for all users in Luxembourg and across Europe is a key objective for the Luxembourg government. We are delighted that Vodafone and AST Spacemobile have decided to set up operations here, helping to enrich our connectivity ecosystem," added the prime minister’s minister delegate for media and connectivity,  (CSV).

Vodafone has been a key investor in AST Spacemobile since 2018. In January 2024, the operator participated in a $155m financing round, carried out in partnership with AT&T and Google. The round included $110m in 10-year 5.5% convertible bonds and $25m in revenue commitments to AST Spacemobile. This financing, together with a credit line of up to $51.5m, brought the total amount raised to $206.5m. This financial support reflects Vodafone’s confidence in the technology developed to offer universal mobile access through space-based networks.

Since 2023, the company has been working with partners AT&T, Vodafone, Rakuten and Nokia to achieve several historic technical firsts in space-based cellular communications, including the demonstration of 2G, 4G LTE and 5G calls, and download speeds of 14Mbit/s per 5Mhz channel, directly from space to everyday smartphones.

The company also has agreements and arrangements with more than 40 mobile network operators around the world with more than 2bn existing subscribers, including Vodafone Group, Rakuten Mobile, AT&T, Bell Canada, Orange, Telefonica, TIM, MTN, Saudi Telecom Company, Zain KSA, Etisalat, Indosat Ooredoo Hutchison, Telkomsel, Smart Communications, Globe Telecom, Millicom, Smartfren, Telecom Argentina, Telstra, Africell, Liberty Latin America and others. It’s a much wider footprint than the European version described in today’s press release.

How this “direct-to-device” works

The solution is based on a constellation of satellites in low earth orbit (LEO, at around 500-600 km), including the Bluewalker 3 prototypes and the future Bluebirds. These satellites are equipped with very powerful antennas capable of communicating directly with existing smartphones, without requiring any modifications to the device.

When you use your smartphone, it connects first to a terrestrial 4G or 5G antenna. If there is no coverage, it automatically switches to the satellite, which then acts as a mobile antenna in space, guaranteeing continuity of service. The signal is then relayed to ground stations--with Satco, one will be installed in Luxembourg--which connect to traditional internet and existing mobile networks, ensuring seamless continuity of connection.

Performance has already been demonstrated: tests in real conditions have reached more than 20 Mbps on 5 MHz channels via satellite. Next-generation Bluebird satellites are expected to deliver speeds approaching 120 Mbps, thanks to wider channels (40 MHz).

Satco aims to make these services available from 2026, with 21 European operators signed up. Complementing terrestrial networks, this direct-to-device technology will enable users to stay connected without interruption, even on the high seas or in the most remote areas. The infrastructure in Luxembourg, supported by the government, is a crucial pillar of this vision, strengthening the EU’s digital sovereignty.

In parallel, research will be developed in a new centre in Málaga, born of a partnership between Vodafone, AST Spacemobile, the University of Málaga and the Spanish Space Agency. Together, these players will pave the way for the future of smart, hybrid and resilient European connectivity--a collective endeavour that is fully in line with the EU’s digital objectives for 2030.

This article was originally published in .

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