Intelsat, SES and other US satellite companies are in line for a share of $14.9 billion under proposals from the FCC.
The regulator wants to auction spectrum currently used for C-band satellite transmissions to facilitate the launch of new 5G telecoms services.
The C-band represents some 500MHz of spectrum from 3.7 to 4.2 GHz. The FCC argues the satellite companies no longer need the same amount of spectrum and can offer the same services with less bandwidth.
Under proposals for a draft order detailed by FCC chairman Ajit Pai at an event in Washington DC, the lower 280MHz of bandwidth would be made available for “flexible use”, including 5G through a public auction.
$9.7 billion is being offered to the satellite operators in return for a speedy transition. The costs of transferring to the upper portion of the band would be covered, representing another $3.3 billion to $5.2 billion.
In response, Intelsat CEO Steve Spengler said, “The issuance of the draft order represents a significant milestone in a process that we began in 2017. We look forward to reviewing the draft order, once issued, to place Chairman Pai’s comments in full context. We note with appreciation the hard work of all stakeholders to get to this juncture, and the work to come leading up to the Commission’s vote on February 28, 2020.”
There had been concerns that the satellite operators were to prepared to walk away from the negotiating table without a satisfactory conclusion.
An auction is now anticipated before the end of 2020.
