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Vodafone and AST SpaceMobile to Build Europe-Led Satellite Constellation for Secure Connectivity

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Vodafone and AST SpaceMobile announced plans on Friday to develop a Europe-led satellite constellation designed to provide direct satellite-to-smartphone connectivity for both commercial and government applications.

The joint venture will establish its European operational headquarters in Germany, with potential sites near Munich or Hannover under consideration. The new system will serve as a “sovereign satellite solution”, providing secure communications to European mobile network operators, public agencies, and emergency services.

According to the companies, the constellation will feature a “command switch” to ensure European oversight, with built-in encryption and control systems for secure communication and satellite management.

The initiative aims to enhance broadband access and improve disaster relief capabilities across the continent, particularly in underserved regions. Industry analysts estimate the satellite-to-phone connectivity market could surpass $10 billion by 2033, reflecting growing demand for broadband in remote areas.

The announcement follows Elon Musk’s Starlink striking a deal with Veon on Thursday to deliver direct-to-cell connectivity to up to 150 million users across its markets. SpaceX also expanded its U.S. spectrum holdings, signaling intensified competition in the satellite communications sector.

AST SpaceMobile, which currently operates six satellites and plans to expand to 60 by 2026, is positioning itself as Europe’s alternative to U.S.-based Starlink. Vodafone, a major investor in AST, said that operators in 21 EU member states have expressed interest in joining the project, which is slated for commercial launch in 2026.

Vodafone CEO Margherita Della Valle said the initiative will provide Europe with secure, sovereign satellite communications that complement terrestrial networks, strengthening the continent’s digital autonomy.

AT&T to Acquire Lumen’s Consumer Fiber Business for $5.75 Billion in Cash Deal

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AT&T has agreed to purchase Lumen Technologies’ consumer fiber business for $5.75 billion, the companies announced Wednesday. The acquisition will give AT&T an additional 1 million fiber customers and bolster its national fiber footprint across several key metro areas.

The deal will significantly expand AT&T’s residential fiber coverage in markets including Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle, according to an AT&T statement.

Lumen’s shares surged 13% in after-hours trading following the announcement.

Strategic Move for Both Companies

The acquisition:

  • Enhances AT&T’s residential broadband scale amid growing demand for high-speed fiber internet.

  • Allows Lumen to streamline its focus on its enterprise fiber business and invest more aggressively in low-latency infrastructure to support AI and multi-cloud environments.

“The customers are asking us to go faster, which is really to deliver their needs in a multi-cloud, AI-first world,” said Lumen CFO Chris Stansbury in an interview with Reuters.

Financial and Operational Impact

Lumen plans to:

  • Use $4.8 billion of the proceeds to reduce its debt burden.

  • Improve annual cash flow by over $300 million, largely by cutting interest expenses.

For AT&T, the newly acquired assets will be placed into a newly formed subsidiary, in which it plans to sell a minority stake, helping manage risk and capital requirements.

The transaction is expected to close in the first half of 2026, pending regulatory approvals.

Industry Context

The deal underscores the growing value of fiber internet infrastructure, as demand for high-speed, low-latency connectivity increases—particularly to support remote work, streaming, gaming, and AI-related data loads.

Reuters first reported in December that Lumen was exploring the sale of its consumer fiber business, which had been viewed as non-core to its future growth strategy.

Trump Broadband Nominee Denies Favoritism Toward Elon Musk’s Starlink

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Arielle Roth, President Donald Trump’s nominee to lead the National Telecommunications and Information Administration (NTIA), firmly rejected claims on Thursday that she would steer a $42 billion broadband expansion program in favor of Elon Musk’s satellite internet firm, Starlink.

During a Senate confirmation hearing, Roth stated, “I will administer the program to the benefit of the American people, not any single individual or company,” amid Democratic concerns that Trump allies could direct a large share of funds toward Musk, a close adviser to the president.

Concerns Over Program Priorities
The broadband initiative, created under the 2021 Infrastructure Investment and Jobs Act, prioritizes fiber-optic technology, widely regarded as more cost-effective and capable of delivering faster speeds than satellite internet. However, Democrats fear the Trump administration may shift that priority to favor Starlink, potentially giving Musk up to $20 billion in funding.

Senator Ed Markey (D-MA) criticized any such move:

“I strongly urge you to oppose this giveaway to Elon Musk,” he said, emphasizing the law’s fiber-first intent.

While the program does not ban satellite services, it restricts their use to areas where fiber installation would be excessively costly.

Republican Pushback
Republicans, meanwhile, argue the Biden administration politicized the program by moving too slowly and allegedly blacklisting Musk. Senator Ted Cruz (R-TX) pointed to delays in approvals and called for a more tech-neutral approach.
Only three states have had their proposals approved, and just four have finalized provider selections. Thirty more are still reviewing applications.

Shift Toward Tech-Neutral Strategy
Earlier this month, Commerce Secretary Howard Lutnick announced a review aimed at ensuring the program supports the most cost-efficient broadband solutions—whether fiber, satellite, or other technologies.

“We want an outcome-driven, tech-neutral approach that prioritizes getting the most Americans connected at the lowest cost,” Lutnick said.

Stakes for Rural America
The NTIA’s Broadband Equity, Access, and Deployment (BEAD) program is one of the largest government efforts to close the digital divide in rural America. As debates continue over technology preferences and political influences, Roth’s confirmation could play a pivotal role in the program’s direction during Trump’s second term.