Vodafone and AST SpaceMobile announced a new EU-based satellite broadband joint venture, SatCo, anchored by a Germany-based European Satellite Operations Centre.
Targeting a 2026 commercial launch, the venture plans a mid-band satellite constellation with a European “command switch” designed to meet EU sovereignty, security and resilience requirements. For businesses and public-sector organisations, the move could offer new options for guaranteed, policy-compliant connectivity across Europe.
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What SatCo means for enterprises
SatCo aims to deliver satellite broadband directly to standard smartphones and devices, extending the reach of terrestrial 5G networks and creating a hybrid connectivity model that blends mobile operator services with direct-to-device (D2D) satellite coverage.
For sectors that cannot tolerate network downtime-utilities, transport and logistics, emergency services, oil and gas, and maritime operations–this offers a promising continuity layer that could maintain critical communications during terrestrial outages, disasters or in remote areas.
The Germany-based operations center and EU-controlled command switch will be particularly attractive to government and regulated industries that face heightened scrutiny around data residency, supply-chain security and digital sovereignty. By routing satellite operations through an EU-governed control point, SatCo is positioning itself as a compliant alternative to non-EU satellite providers like SpaceX Starlink–an important differentiator with procurement frameworks increasingly favouring regional control and interoperability.
Practical advantages and go-to-market approach
A key commercial advantage is SatCo’s plan to distribute its services through existing mobile network operators (MNOs), notably Vodafone, which has national EU networks in Germany and in ten other EU countries. This lowers integration friction for enterprises: organisations could access satellite redundancy through their current mobile contracts instead of onboarding a new vendor or specialised hardware.
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By GlobalDataFor Vodafone this is an opportunity to reinforce its managed connectivity and IoT offerings, upsell integrated terrestrial-satellite packages, and protect enterprise revenue from rival satellite-first players.
Risks and limitations for business buyers
Vodafone and AST SpaceMobile have much to prove when it comes to execution of the joint venture.
Enterprises will judge SatCo on measurable service-level performance–latency, uptime, security and integration with existing SD-WAN or SASE architectures. Established players such as Eutelsat’s OneWeb, SES and Starlink already have enterprise footprints and demonstrated SLAs; SatCo must show equivalent reliability to earn large contracts. The indirect MNO-driven sales model may also frustrate multinational customers seeking unified, cross-border contracts and single-pane management.
There are also trade-offs tied to the venture’s EU focus. Sovereignty strengthens local appeal but may limit attractiveness to global firms that need seamless worldwide coverage. Perception of Vodafone dominance in the venture could deter enterprises tied to other operators. Finally, it remains unclear how well SatCo will support machine-to-machine IoT use cases that don’t use smartphones.
Recommendations for enterprise decision-makers
CIOs and CTOs should consider early engagement in pilot programs–particularly in support of business continuity, field operations, and emergency communications–to validate SatCo’s performance against required service level agreements (SLAs) before wider adoption. When negotiating contracts for large-scale services, enterprises should insist on clear SLAs, unified reporting, and APIs for integration with existing network-management and security stacks.
Global enterprises should probably consider SatCo—once it’s up and running—as one element of a multi-provider resilience strategy. Combining regional sovereignty-focused services with global satellite providers can deliver both compliance and global continuity.
SatCo’s EU-centric satellite offering could become a compelling option for organisations prioritising sovereign, resilient and interoperable connectivity within Europe.
However; It is not the only initiative being undertaken by satellite operators and telcos in Europe, and EU-based MNCs may wish to wait until there are multiple options and combinations of providers. Until then, incumbent satellite providers with proven SLAs and global footprints will retain the enterprise lead.
