Vodafone and US-based AST SpaceMobile is to locate their new satellite communications venture, SatCo, in Luxembourg.
The company plans to launch a Europe-wide mobile broadband service delivered directly from satellites to ordinary smartphones—no special devices or dishes required.
The service, which is expected to go live in 2026, promises to plug coverage gaps across the continent, especially in remote areas, on the move, or during network outages.
Unlike most satellite-based internet services (think Starlink), this major technical breakthrough requires no dish, terminal or other bulky equipment to be installed and aligned. Instead, for the first time users will be able to access seamless standard 4G/5G network app-free between space and terrestrial networks, something that has never been commercially available at scale before.
“This joint venture supports European digital sovereignty by creating a unified platform to deliver satellite connectivity across the continent,” said Abel Avellan, founder and CEO of AST SpaceMobile. The firm explained that digital sovereignty to them was providing Europe with the ability to control and govern its own digital infrastructure, data, and technologies in alignment with its laws, values, and strategic interests.
A spokesperson said: “In practice, this will mean that the core land-based network, data flows and controls operating the satellites, while they travel over Europe, will remain in Europe.”
What’s the Vision?
Unlike traditional satellite internet services, which often rely on dishes or specialist equipment, SatCo’s network will connect directly to everyday smartphones using low Earth orbit (LEO) satellites. The system is designed to complement, not replace, existing 4G and 5G networks—seamlessly switching between land and satellite signals depending on coverage.
AST SpaceMobile and Vodafone say the service could eventually deliver speeds of up to 120 Mbps, with earlier demonstrations already showing working video calls and 4G/5G data transmissions to unmodified phones.
What is SatCo’s role?
SatCo will operate as a wholesale provider of satellite connectivity, working with mobile operators across Europe. As such it will build the ground station infrastructure, providing multi-tenanted connectivity between mobile network operators and the satellite system. It will support mobile network operators in developing and rolling out their direct-to-device propositions, with a package of both technical and commercial consultancy and services. And, once the operators launch their respective commercial services, it will offer ongoing technical support.
According to the companies, telecom providers in 21 EU member states—and a number of other European markets—have already expressed interest in the service.
Why Luxembourg?
Vodafone has an existing presence in the grand duchy in its procurement company, which is in the process of constructing a logistics hub in Bettembourg. The company said that Luxembourg stood out for its heritage and talent in space-based communications. Luxembourg has become a major player in satellite communications since the creation in the 1980s of SES. Since establishing a space agency in 2018, space activities contribute around 2% of GDP. Meanwhile, the firm said it was attracted by the good working relationship and support from the country’s economy ministry.
The companies have not yet detailed how many jobs will be created in Luxembourg or how they plan to engage with local industry and research institutions. But government officials expressed optimism that SatCo will bring new opportunities to the country’s fast-growing space and tech ecosystem.
Elisabeth Margue, minister delegate to the minister for media and connectivity, said: “Assuring ubiquitous coverage of mobile broadband connectivity for all users in Luxembourg and in areas of Europe is a key objective for the Luxembourg Government. As such, we welcome the decision of Vodafone and AST SpaceMobile to choose Luxembourg as their European headquarters, enriching the connectivity ecosystem by developing innovative services based on terrestrial and satellite infrastructure. We are looking forward to the local deployment and leverage of competencies and skills by the new entity, enabling a commercially successful service deployment on a worldwide basis.”
