OQ Technology secures $30 million from Europe for satellite-to-smartphone expansion

TAMPA, Fla. — Europe’s investment arm is lending Luxembourg-based OQ Technology 25 million euros ($30 million) to expand its direct-to-device constellation, bolstering the continent’s push to compete with U.S.-led efforts to connect smartphones from space.

The European Investment Bank (EIB) debt will support the deployment of more than 20 small satellites, OQ Technology announced Feb. 25, including its first dedicated to providing smartphone connectivity in C-band that is slated for launch in the middle of this year.

OQ Technology currently uses S-band to connect proprietary and mass-market off-the-grid tracking and monitoring devices, after deploying 10 Internet of Things (IoT) satellites in low Earth orbit.

Last year, the operator used one of those satellites to transmit a test emergency broadcast message to unmodified smartphones, demonstrating early direct-to-device (D2D) capability.

C-band promises greater bandwidth than S-band, and additional spacecraft would improve coverage and latency for what OQ Technology intends to be a multi-band constellation serving IoT and smartphone devices.

Europe’s D2D answer

The financing comes as U.S.-based operators have taken an early lead in the emerging D2D market.

SpaceX is already providing messaging and limited data services in multiple countries as it seeks access to C-band and other spectrum to expand capabilities.

AST SpaceMobile, also based in the United States, aims to ramp up satellite deployments this year and recently won a $30 million U.S. Space Development Agency contract to demonstrate D2D broadband connectivity for military applications.

“Space is a globally fast-growing sector and OQ Technology is onboard the race,” Andrius Kubilius, European Commissioner for Defence and Space, said in a statement.

“Europe needs to capture this growth for its competitiveness, resilience and autonomy.”

Financial terms of OQ Technology’s debt were not disclosed. The financing is backed by the European Commission’s InvestEU program, which uses an EU budget guarantee to mobilize public and private capital for strategic sectors such as space.

The move follows earlier EIB backing for Spanish satellite operator Sateliot in 2024, which has outlined ambitions to expand from 5G-compatible IoT services into direct-to-smartphone connectivity.

Prioritizing institutional capital

OQ Technology raised 13 million euros in a Series A round in 2022, co-led by Saudi oil and gas company Aramco’s venture capital arm and a fund managed by Greek early-stage investor 5G Ventures.

The company had sought a larger 30 million euro Series B round that included a 15 million euro commitment from Luxembourg Space Sector Development (LSSD), a government-backed initiative co-run with SES, the multi-orbit satellite operator also based in Luxembourg.

Notably, SES has invested in U.S.-based D2D ventures Lynk Global and Omnispace as part of its strategy to gain exposure to the nascent sector.

But rather than pursue a broader equity raise tied to long-term plans, OQ Technology founder and CEO Omar Qaise told SpaceNews the company chose to prioritize advancing key payload and other milestones to de-risk technology, helping attract capital from more institutional investors such as the EIB.

“We are continuing discussions with additional long-term investors as we scale our IoT and D2D satellite constellation,” he added.