Bridging the EU’s digital divide: how smarter satellite policy can close the gap

Imagine standing in the heart of Paris, streaming a 4K movie on your phone without buffering. Now, take a drive just two hours into rural France, and suddenly, even sending an email becomes a struggle. This is the paradox of Europe's digital landscape - one of the most technologically advanced regions in the world, yet still riddled with dead zones and bureaucratic roadblocks that make high-speed internet a privilege rather than a right. 

Now imagine a hypothetical scenario if connectivity infrastructure (e.g., cables in the Baltic Sea) is compromised and countries in the Eastern flank of the EU can’t use mobile anymore. Countries like Switzerland, and Ukraine are currently developing solutions with ‘Starlink Direct to cell’ which essentially allows users to have connectivity via their smartphones - meaning that no expensive equipment is needed. 

While companies like Starlink promise a future where satellites erase connectivity gaps, the reality is that red tape, high costs, and outdated policies are slowing down the progress.

The Great connectivity illusion: Europe’s digital blind spot

The European Commission has pledged “internet access for all” under its Digital Decade 2030 strategy, but the reality is starkly different. As of 2024:

• 10% of the EU’s rural population still lacks basic broadband
• only 72% of rural homes have access to fast internet, compared to 96% in cities,
• countries like Germany, Italy, and Greece still have large areas with no 5G coverage.

At the same time, Europe invests a lot of valuable time in AI regulations, digital sovereignty policies, and semiconductor investment plans, yet millions of citizens still struggle with basic connectivity. This is the contradiction at the heart of Europe’s digital ambitions - how can it lead to innovation if parts of it are stuck in the dial-up era?

Satellite internet: the ‘instant fix’ that isn’t so instant

When Elon Musk’s Starlink entered the European market, it was hailed as a game-changer. With thousands of low-Earth orbit (LEO) satellites, Starlink promised high-speed internet anywhere - from the Alps to the remote villages of Eastern Europe.

But there’s a catch.

First, cost. Starlink kit costs around €450, plus a monthly fee of €65-€100. For many Europeans in rural areas, this is more than their monthly utility bills combined.

Second, regulatory maze. Unlike in the U.S., where Starlink operates under a single national license, Europe requires country-by-country approvals. Result? The slower rollout, higher costs, and endless bureaucratic delays.

Third, stagnant competition. Starlink dominates the LEO satellite market. While Amazon’s Project Kuiper and OneWeb are emerging competitors, they remain in the early stages. Without real competition, prices stay high.

Bureaucracy is the biggest roadblock

The biggest irony? Europe’s regulatory framework, designed to protect competition and consumers, is now doing the opposite - blocking innovation and keeping prices high.

1. EU Spectrum centralization as a barrier to innovation. While an ambition to centralizee the EU's spectrum licensing system may seem efficient, it could actually slow innovation. Unlike the U.S., where a single FCC license enables nationwide deployment, the EU’s 27-member bureaucracy would struggle to reach a consensus, delaying rollouts like Starlink-to-Cell.

Without a unified space regulator, decision-making would be slow, limiting competition and market flexibility. Instead of full centralization, a harmonized framework with national flexibility-such as mutual recognition of approvals-could balance efficiency and innovation.

A rigid, one-size-fits-all approach risks stifling Europe’s tech growth, while a more adaptive system could ensure faster and more competitive satellite services.

2. Governments play favorites, and it’s slowing progress. European governments heavily subsidize fiber optics, even in areas where it’s not the best solution. While fiber is ideal in cities, laying cables to remote areas costs up to €30,000 per kilometer - a slow and expensive process.

Moreover, the EU wants to invest up to 600 billion euros in connectivity by 2030 (according to the EU’s White paper ‘How to master Europe’s digital infrastructure needs?’) while industry and government commitment, mapping, and grid (similar to roads & energy sectors has) is simply not there. 

Meanwhile, satellite internet, which could cover vast areas overnight, receives little to no government support. The EU's own Connecting Europe Broadband Fund prioritizes fiber and 5G, leaving satellite services to fight for scraps.

3. Outdated thinking on what ‘fast internet’ should be. Europe’s broadband policies focus on download speeds rather than real-world accessibility. This ignores the fact that many rural areas don’t even have stable mobile connectivity, let alone fiber. Instead of prioritizing speed for the few, policymakers should focus on universal access first, and speed second.

The real alternatives: smarter, cheaper ways to get everyone online

If fiber is too slow to roll out and satellite services remain costly, what’s the solution? The key lies in technological neutrality-leveraging all available technologies from credible vendors instead of favoring one. Smarter, cost-effective strategies exist, but Europe must be willing to embrace them.

1. A hybrid approach: Satellite + 5G + Fiber + Wi-Fi. Rather than prioritizing a single technology, Europe should integrate fiber, 5G, satellite, and Wi-Fi to maximize efficiency.

For example, in rural Austria, a pilot project uses 5G for town centers, fiber for key institutions, satellite for remote homes, and Wi-Fi for last-mile distribution- a scalable model for the entire EU.

This could be a faster, cost-effective coverage without excessive infrastructure investment.

2. Streamline spectrum policies for true EU-wide access. The EU should adopt a single satellite licensing framework, like in the U.S., to enable providers to operate across all 27 member states without regulatory delays.

Harmonizing Wi-Fi and IMT spectrum rules would ensure that both technologies can coexist and evolve without unnecessary restrictions and results in lower costs, quicker rollouts, and enhanced competition.

3. Public-private partnerships for inclusive connectivity. Instead of exclusively subsidizing fiber, governments should co-fund satellite kits, local 5G networks, and Wi-Fi hotspots to ensure universal access.

Canada, for example, subsidizes satellite broadband for remote areas-Europe could adopt a similar model.

4. Leverage all credible technologies for a competitive market. The EU should ensure that all viable satellite, 5G, fiber, and Wi-Fi providers have a role in its digital strategy.

While investing in IRIS², Europe should also collaborate with existing global and regional providers to accelerate deployment and ensure a balanced, competitive market that drives innovation and lowers costs.

By embracing technological neutrality and interoperability, Europe can achieve faster, more affordable, and more resilient connectivity for all without over-reliance on any single technology or vendor.

The future of internet access shouldn't be politicized

The technology to eliminate Europe’s digital divide already exists - the real barrier is political inertia and, sometimes, protectionist ideas. While bureaucracy strangles progress, millions remain disconnected, unable to access remote jobs, online education, or even basic digital services.

The EU needs a shift in priorities.

• Less red tape, more action - EU-wide satellite licensing, smarter funding models, and real competition.
• Technologically neutral, hybrid solutions, not one-size-fits-all thinking - fiber where it makes sense, satellite where it doesn’t.
• Affordability first - because the best internet in the world is useless if people can’t afford it.

If Europe wants to be a true digital leader, it must stop talking about innovation and start enabling it. Until then, the continent’s digital future will remain stuck in the past.