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European Telecom Giants Threaten Legal Action Against Elon Musk's Starlink Over Potential FCC Rule Changes

Benzinga ·  Oct 3 07:50

Several European telecom companies, including Vodafone, Telefonica, and Orange, are considering legal action against Elon Musk's SpaceX if the Federal Communications Commission (FCC) relaxes radio emission rules for its Starlink system.

What Happened: European telecom giants have expressed their concerns in a letter to the FCC, warning that any relaxation of emission limits could negatively impact licensed terrestrial mobile network operators and their users.

"Any relaxation that degrades the utility of spectrum that mobile operators have licensed from their respective national authorities, and which would undermine service quality and increase deployment costs, would be legal grounds for claiming damages," the companies said in the complaint.

Alongside U.S. companies like AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ), the European carriers argue that SpaceX's technology could cause radio interference if allowed to exceed current limits.

SpaceX, however, has requested a waiver from the FCC, claiming that without it, their system may struggle to provide reliable real-time communications, especially during emergencies.

SpaceX asserts that its technology is designed to avoid interference with ground networks and requires the waiver only when satellites are over the U.S. It recently announced that its Starlink customer base has reached the four million mark, adding a million new customers in four months.

Despite this, resistance from telecom companies continues to grow, with many supporting a rival provider, AST SpaceMobile, which is also developing satellite systems.

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Why It Matters: The legal threat from European telecom giants comes at a time when SpaceX's Starlink has reached a significant milestone with its 7,000th satellite launch.

This achievement has prompted FCC Chair Jessica Rosenworcel to call for increased competition in the space industry, emphasizing that it will lead to lower prices and more innovation.

Additionally, SpaceX's Starlink has demonstrated its capability in emergency communications. Earlier this month, T-Mobile US Inc. (NASDAQ:TMUS) successfully sent and received the first-ever wireless emergency alert via Starlink satellites, showcasing the system's potential in public safety scenarios.

Despite these advancements, SpaceX CEO Elon Musk has criticized the FCC's decision to deny Starlink nearly $900 million in subsidies, labeling it as "contemptible political lawfare."

This comes as the Federal Emergency Management Agency (FEMA) has turned to Starlink to provide connectivity in regions affected by Hurricane Helene, further highlighting the system's importance in disaster response.

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