• UK’s Ofcom gives green light to D2D
• GSMA claims spectrum policy changes could boost MNO capex
• EU Council approves AI gigafactory plans

In today’s industry news roundup: The UK regulator sets out its final decisions about how satellite-enabled direct-to-device (D2D) services should be provisioned; the GSMA puts European policymakers under pressure to reform spectrum licensing rules; the EU Council approves a change in current regulations that will enable the establishment of AI gigafactories in EU member countries; and more!

UK telecom regulator Ofcom has given the official green light for satellite-enabled direct-to-device (D2D) services in the country, stating that the UK will be the first country in western Europe to enable D2D services (Veon’s Kyivstar has already launched D2D services in Ukraine in eastern Europe in partnership with Starlink). Ofcom has published its final decisions about how the technology can be rolled out, paving the way for the launch of D2D services in the first half of 2026 by Virgin Media O2 (VMO2), which has also teamed up with Starlink, and VodafoneThree, which will offer its services in partnership with AST SpaceMobile, the low-earth orbit (LEO) satellite operator with which Vodafone Group is launching a wholesale D2D service across Europe next year. BT Group currently doesn’t have any plans for a D2D service. “Any mobile network operator that intends to provide direct-to-device services will need to request a change to its Ofcom licence,” noted the regulator in this announcement. “As this technology will utilise frequencies that are already used by the mobile sector, there are rules that companies will need to follow to avoid interference, which Ofcom has also finalised today. These include protections to avoid disruption to air traffic control stations and mobile networks in neighbouring countries,” the regulator added. 

Europe’s policymakers could help the region’s mobile operators pump tens of billions of euros more into their networks by taking a “smarter approach to spectrum policy”, according to a new report, Spectrum pricing and renewals in Europe, from the research arm of industry group the GSMA. The GSMA Intelligence report suggests that reforming spectrum licence renewal processes could reduce the costs facing Europe’s mobile operators by up to €30bn, capital that could then be used to invest in “5G standalone (5G SA) rollouts… boosting the continent’s economic output,” noted the GSMA. (Of course, the operators could just as easily divert such savings into the pockets of shareholders, but that’s a different discussion!) The GSMA suggests any such savings could “address in part Europe’s ongoing investment gap. If €20bn or €30bn were unlocked by smarter spectrum renewal policies, operators would potentially be able to cover the work needed to upgrade all existing 5G networks to 5G SA – bringing increased speeds of up to 23% and driving up to €75bn in additional GDP over the next decade,” it stated. “But to achieve these savings will require policy reform and a unified European approach to licensing and renewals,” it added. A reform of spectrum licensing rules, as well as looser M&A rules, are some of the changes that Europe’s major telcos have been lobbying for over the past five years at least, and claiming that regulatory changes might improve Europe’s digital infrastructure is a good way to catch the attention of regional politicians as the issue of sovereign services grows in importance. John Giusti, chief regulatory officer at the GSMA, stated: “Providing high-quality connectivity to Europe’s citizens and improving the continent’s competitiveness requires a lot of investment that many operators are struggling to source or justify. Smart reform of Europe’s spectrum policy will have an immediate and enduring impact. In particular, renewal costs are a clear opportunity to be smarter in [terms of] how industry money is assigned. Rather than continuing to use spectrum as a windfall opportunity, policymakers should be more ambitious with their approach to renewals and allow these funds to be directed to support Europe’s ongoing digital goals.” Read more. 

Talking of European policymakers… The Council of the European Union has approved plans that support the establishment of up to five AI gigafactories across Europe: Some of the region’s major telcos, including Deutsche Telekom and Telefónica are keen to play a major role in setting up and running such facilities. Specifically, the council has “agreed on an amendment to the regulation that sets the framework for the activities of the European High-Performance Computing Joint Undertaking (EuroHPC JU).” That amendment “aims to establish AI gigafactories in Europe and create a dedicated quantum pillar in the activities of the EuroHPC JU,” the council noted in this announcement, adding that it “outlines the framework for establishing and operating AI gigafactories” and “sets clear rules for funding and procurement and includes protection measures for startups and scaleups.” It also allows unused EU funds to be redirected towards AI gigafactory projects and allows the “creation of multi-site gigafactories across multiple countries”. Christina Egelund, Danish minister for higher education and science, stated: “Today, we have taken very important steps towards establishing up to five new AI gigafactories in Europe. AI is, in my opinion, one of the most important critical technologies of tomorrow and key for European resilience, competitiveness and security. We owe Europeans a strong response to American and Chinese strengths in this field.” That’s all  very well but Europe needs a quick, as well as a strong, response to what is happening elsewhere in the world and actions need to be accelerated if Europe is not to be an AI also-ran: We reported only a few days ago that the process that enables companies to apply for European Commission (EC) funding for AI gigafactory developments, originally expected before the end of 2025, has now been pushed into next year. 

Just when Netflix thought it had won the battle to acquire the bits of Warner Bros Discovery (WBD) it wanted for $82.7bn, Paramount has countered with a $108.4bn all-cash offer for the whole of the entertainment giant. “Paramount’s strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash. The Paramount offer for the entirety of WBD provides shareholders $18bn more in cash than the Netflix consideration,” stated Paramount in this announcement. Someone get the popcorn!

– The staff, TelecomTV