TAMPA, Fla. — Luxembourg’s OQ Technology plans to test direct-to-smartphone satellite connectivity next year in Germany using a local telco’s cellular spectrum, setting up a challenge to U.S.-led services in the emerging market.
The operator announced a partnership June 8 with Telefonica Germany to demonstrate two-way messaging and voice capabilities between a small satellite slated to launch in the first half of 2027 and standard, unmodified smartphones.
The trial would follow SpaceX’s early direct-to-device (D2D) progress using cellular spectrum from partners across multiple countries to connect smartphones via around 650 specialized Starlink satellites.
SpaceX recently got permission to trial its Starlink Mobile service in Spain and has partnered with Deutsche Telekom, Telefonica Germany’s domestic rival, to provide next-generation D2D services in 10 European countries from 2028, after launching upgraded satellites.
“Europe must develop its own sovereign and interoperable space-based mobile infrastructure,” OQ Technology founder and CEO Omar Qaise said.
“This collaboration with Telefonica Germany demonstrates that European operators and European satellite companies can jointly build next-generation connectivity solutions based on open standards, licensed spectrum, and existing smartphones.
“Our D2D satellite network is designed to seamlessly complement terrestrial mobile networks, extending coverage where it is most needed while preserving terrestrial mobile operator control and their spectrum sovereignty.”
German testing ground
The demonstration would use Telefonica Germany’s 2.6 gigahertz spectrum, Qaise said in an interview, which is part of a mid-band mobile allocation also used widely elsewhere for terrestrial communications.
“We’ll get a lot of information about how the coverage is, how to manage interference [and] how to optimize such service,” he said, “which is important for the regulators and for mobile operators.”
The data will also help OQ Technology determine the best approach for potentially expanding D2D services via cellular frequencies in the future.
Last year, OQ Technology successfully transmitted a test emergency broadcast message to unmodified smartphones using satellite S-band spectrum, which its low Earth orbit (LEO) constellation currently uses to connect proprietary and mass-market Internet of Things (IoT) tracking and monitoring devices.
The company previously signed a roaming agreement with Telefonica Germany for IoT satellite connectivity, which is global in scope but dependent on where the satellite operator has been granted market access.
OQ Technology plans to deploy a dedicated S-band spacecraft for D2D in 2027 to further test the capability with unmodified smartphones.
Later this year, it plans to test smartphone connectivity with a separate satellite using C-band, which promises greater bandwidth than S-band for D2D.
Using cellular spectrum would open up another path for improving performance, while enabling mobile operator partners to extend coverage with frequencies and customer relationships they already have.
In the future, OQ Technology plans to deploy multi-band satellites to give mobile operators and governments more flexibility across markets and use cases.
The plan is to use only one satellite to demonstrate cellular D2D next year in Mecklenburg-Western Pomerania, northeastern Germany.
That would be enough to test short communications sessions as the satellite traverses the area, such as a potential five-to-10-minute emergency voice call beyond terrestrial coverage, Qaise said.
Messaging could be established immediately because of a nearby gateway, he added, although a single satellite would likely achieve only around two passes a day over the same area at best.
OQ Technology has deployed 12 satellites to date, primarily for its IoT business, but in February secured a loan from the European Investment Bank worth around $30 million to support the deployment of more than 20 spacecraft.
European spectrum scramble
The European Commission recently moved to reshape access to another part of S-band after current authorizations expire in 2027, proposing to split it into three blocks, but with only one of them open to operators outside Europe.
U.S.-based Viasat and EchoStar currently use the spectrum in Europe, with the latter agreeing to sell its portion to SpaceX to improve Starlink Mobile services.
Under the proposal, one third of the band would be set aside for government communications linked to IRIS², Europe’s planned sovereign broadband constellation. Only European entrants would be able to compete for another third of the band, with the remainder open to European and non-European operators.
U.S.-based D2D constellation developer AST SpaceMobile has a Luxembourg-based joint venture with British telecoms giant Vodafone to use the spectrum for a European satellite broadband service.
Even just a third of this S-band spectrum could support initial narrowband IoT and emergency D2D services, Qaise said, though more radio waves would likely be needed as traffic and user numbers grow.
As well as helping telcos address mobile dead zones, he said OQ Technology’s network could provide an important backup if terrestrial services are lost in a cyberattack or natural disaster.
Defense opportunity
OQ Technology is also looking to use its constellation to support drones and other defense-related applications.
The company said it recently used S-band spectrum from space to transmit video from a compact drone, leveraging edge computing to compress the footage to fit in a narrowband IoT link, avoiding the need for larger and more power-hungry broadband satellite terminals.
Qaise said the test showed how lightweight drones could use satellite connectivity for infrastructure monitoring, traffic surveillance and autonomous guidance beyond terrestrial coverage.
“We hope in future also with the D2D missions to demonstrate high resolution video transmission from drone to the satellite,” he added, “in C-band, S band” and cellular frequencies.
Earlier this month, Luxembourg’s government awarded OQ Technology 2.28 million euros ($2.63 million) for Sentinel, a project with the University of Luxembourg to research and develop a system to protect 5G satellite uplinks against jamming, spoofing and electromagnetic attacks.
The contract marks OQ Technology’s first major defense award, which Qaise said fits with the company’s broader push to support sovereign European satellite communications for commercial and government users.
