The US government is consulting with the telecoms industry about “reciprocity” in satellite services, in a move that could see another dispute erupt with the European Union over regulations.
America’s telecoms regulator, the Federal Communications Commission (FCC), this week issued a consultation [PDF] asking for industry feedback on the state of international reciprocity in satellite services.
Washington believes other countries are putting in place barriers to block US satellite businesses from accessing their markets by imposing “unacceptable regulatory burdens” on them. The implication is that the US should mirror any such actions.
FCC chair Brendan Carr said as much in an interview with Politico, where he specifically took aim at the EU, saying: “We just want to make sure that every satellite operator gets a fair shake in Europe.” He said the US will not hesitate to push European satellite firms out of the American market if it this is not the case.
The consultation document lists the draft EU Space Act, which proposes a harmonized framework for space activities across the region, and the Digital Networks Act (DNA) which seeks to do the same for telecoms, as key causes for concern.
With the Space Act, the FCC says the US expressed its concern that measures in the proposed legislation would foist “unacceptable regulatory burdens on US providers of space services to European customers,” though does not specify what these are.
Concerns relate to harmonized EU-wide authorizations for satellite spectrum use, and whether these would necessitate wholesale re-licensing of US systems operating in Europe.
The European Commission did not respond to a request for comment. Henna Virkkunen, the EVP for Tech Sovereignty, Security and Democracy, told Politico the proposals were aimed at ensuring a level playing field.
The US already legislates in favor of domestic industry well beyond satellites – the Buy American Act requires federal agencies to prioritize US-made goods, while the Berry Amendment mandates Pentagon preference for domestic equipment.
The EU isn’t the FCC’s only concern. The consultation document singles out the UK as the leading foreign holder of US market licenses, while noting that some 75 percent of the UK Space Agency’s budget (around $603 million) flows to European Space Agency procurement that bars US companies.
We asked the British government’s Department for Science, Innovation and Technology (DSIT) if it was concerned that the consultation might impact on the thriving UK satellite sector, and will update it we get an answer.
Others criticized by the draft doc include Brazil, where the FCC claims foreign operators are required to pay higher annual fees for landing rights (ie, license to connect to ground stations) than Brazilian operators. In the Arab states making up the Gulf Cooperation Council, telecoms licenses are typically limited to locally registered entities, it states.
“In light of these growing competitive and economic disadvantages, and potential barriers to US satellite operators participating in foreign markets, we invite comment on the current state and expected evolution of satellite market access reciprocity in foreign countries,” the consultation document says.
The FCC is inviting interested parties to file comments that will help to shape its future policy position by April 1, 2026. ®