Earth Station Costs Recoupment Gray Area in C-Band Clearing Plan
Satellite earth station operators say as Intelsat, SES and Intel pursue their plan for clearing part of the C-band for potential terrestrial wireless use, one big question is how costs incurred due to changes to those earth stations will be reimbursed. "That's one of the many mysteries of this particular proposal," NPR Vice President-Policy and Representation Mike Riksen told us.
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Proceeds from negotiated agreements with licensed terrestrial wireless operators for C-band access are intended to compensate all affected parties, including earth station and fixed microwave operators, for relocation and reconfiguration costs, and satellite operators for prior investment and opportunity costs, the companies said (see 1802150030). That satellite operators seemingly decided not to consider prior investment and opportunity costs for earth station operators could result in a fight, said a cable official. The C-band NPRM many expect this summer (see 1804200003) will likely tee up numerous issues for comment, the person said. Some cable operators are in areas with exiting fiber, but those in more rural areas lacking sufficient fiber backhaul could face significant costs, the cable official said.
"There will be plenty of time" to work through issues of earth station operator compensation, emailed Intelsat Vice President-Investor Relations Dianne VanBeber, noting the issue becomes moot if the C-band clearing doesn't happen. She said a bigger priority now is determining technical solutions for clearing 100 MHz of the 3.7-4.2 GHz band since that directly affects customers. She said an estimate of costs of relocation is pending completion of technical studies underway. Once determined what needs to be implemented, the proposed consortium of C-band satellite operators (see 1802150030) will head up identifying the solution and compensating entities for changes needed. Expenses that could be compensated potentially include installation of filters and relocation of downlinks where required, she said.
A broadcast industry official said a key missing piece of the satellite operators' proposal is specificity about what costs would be covered and how those reimbursements would happen. NCTA emailed us the 3.7-4.2 GHz band "is heavily used every day to distribute TV programming across the country. Those operations must be protected. We look forward to learning more about the satellite proposal and how they intend to ensure that critical services in this band are protected and existing users are made whole.” VanBeber said earth station operators will have the same downlinks, just in different spectrum bands, and so won't face opportunity losses.
To relocate existing customers out of C-band coordinated for mobile use, Intelsat and SES are considering techniques ranging from regrooming traffic, adding more satellites, upgrading satellite reception through filters and migration techniques "and possibly relocating or fibering a few cable head ends," representatives told an aide for Commissioner Mike O'Rielly, recounted a docket 17-183 filing posted Thursday. They made the case that clearing 100 MHz for terrestrial mobile use could reasonably be done within 36 months of an order, but clearing more while still ensuring video distribution and other services "would be substantially more expensive and time consuming."
In a meeting with the Media Bureau, said a filing Thursday, the companies said the agency could encourage more 3.7-4.2 GHz earth station registration through more streamlining since Form 312 has complexities that could be troublesome for some registrants unfamiliar with or lacking technical staff for antenna registration. The companies and the American Cable Association suggested steps for increasing registrations (see 1805090026).
The C-band proposal is "intriguing" because of 5G's opportunities for expanding mobile wireless platforms but raises concerns since broadcasters rely on C-band for uplinks and downlinks, with "no alternative in terms of affordability, availability or reliability," Riksen said. He said NPR -- which raised concerns with the FCC about the satellite operators' proposal (see 1805040019) -- looked at a private fiber network, but the $200 million price tag is multiple times what it plans to spend on satellite network upgrades over the next decade and still wouldn't reach earth stations in more remote locations. "That's a nonstarter for us," given the cost and NPR's universal service mandate, he said. Riksen said the radio programmer and Intelsat have had discussions about the broadcaster's concerns, particularly about protecting its operations and content distribution and that NPR didn't specifically bring up compensation issues: "There are more pressing questions to be asked and answered."