C-Band Alliance Split Seen Creating Coordinator Questions

The relocation coordinator's job includes setting a timeline and acting on migrating and filtering incumbent earth stations to ensure uninterrupted service during and following the transition, the FCC said. That coordinator also would review transition plans of the incumbent satellite operators and recommend to the FCC any changes, it said.

The relocation coordinator would be named by a search committee chosen by satellite operators. But the band-clearing draft order would have that choice possibly fall to a committee supermajority representing 80 percent of the accelerated relocation payments, while the C-band licenses modification draft order would have it done by a supermajority of all the satellite operators receiving accelerated relocation payments. That uncertainty about the CBA's future could mean the agency opting for the latter option, a lawyer with a client active in the 3.7-4.2 GHz proceeding told us.

Intelsat said the FCC should deal with the CBA members individually since that group's raison d'etre was to push its band-clearing plan that the agency ultimately didn't adopt. During an earnings call with investors Thursday, Intelsat CEO Stephen Spengler said if the FCC plan goes forward, there will be a big implementation phase and ample opportunity for the operators to work together on that.

SES doesn't agree. It said the CBA still has "an important role" and its clearing plan "is the most efficient path to clear the spectrum [but SES] is prepared to act on its own in the clearing process if necessary, while protecting its customers." Telesat didn't comment.

In its filing, Intelsat also argues for a bigger share of accelerated relocation payments meant to incentivize clearing of the band. It said getting 50% of the total amount of incentive payments doesn't accurately reflect its share of the work; it estimates it will be responsible for transitioning 68% of earth station antennas. That, plus its share of current C-band revenue, points to it being more entitled to 60-67% of the incentive payments, it said. It also urges more front-loading of incentive payments to the first phase of the two-part clearing plan and elimination of the idea that if an incumbent operator earns first-phase incentives but then misses second-phase deadlines it has to pay back the first-phase payout. It said penalties for missing accelerated relocation deadlines "are unnecessarily punitive."

Intelsat also urged a variety of deadlines and deadline changes, including extension of the first- and second-phase clearing deadlines by three months. It said the FCC should move back by three months the deadline for the Wireless Bureau to issue a public notice setting the dollar amount for the lump sum payment earth station operators could opt for, to June 26. It said there needs to be a deadline -- maybe 30 days after that PN -- for earth station operators to decide on the lump sum terms. It advocated earlier deadlines for naming a relocation payment clearinghouse search committee and relocation coordinator search committee.

During Thursday's earnings call, Spengler said a top 2020 priority for the company is "optimiz[ing] our spectrum rights," citing the C-band proceeding. The company said it's analyzing possible impacts of the draft order. Asked how shared wireless usage of the band might work if one satellite operator clears early but others don't, Spengler said it all needs to be cleared for mobile operators so there's not necessarily an advantage for clearing before FCC deadlines.

Satellite and wireless interests have been busy meeting with the agency. Eutelsat said CEO Rodolphe Belmer discussed its views on the draft order (see 2002130061) with Chairman Ajit Pai. The Competitive Carriers Association pressed its case for spectrum aggregation limits in the C band with aides to Pai and Commissioner Brendan Carr. With Commissioner Mike O’Rielly a likely hard no (see 2002190061) the support of both is considered necessary for changes to the draft order. “While there are many tools that the Commission could use to promote an inclusive auction, CCA explained in its meetings that an aggregation limit is the most modest, least-intrusive way to further Congress’s goals and enhance competition,” CCA said.

Exemptions

Alaska telecom companies asked to be excluded from the C-band plan, which also carves out Hawaii and outlying territories. A later plan would need to address those places. “It's a very appropriate recognition of our unique networks,” emailed Alaska Telecom Association Executive Director Christine O’Connor. “This spectrum is critical to our satellite communications systems here in Alaska and without the exclusion service would have been disrupted in remote areas. Here in Alaska we do not have a shortage of spectrum for 5G deployment, so it was much more important to maintain the current use of C-Band.”

“We advocated strongly for Alaska to be exempted from the transition, and the record was nearly unanimous among parties that addressed the issue,” said an Alaska Communications spokesperson. “We are pleased that the FCC protected C-band satellite services in Alaska, which provide vitally important, irreplaceable connectivity for schools, libraries, health care providers, first responders, government services, and communities across many remote areas of our state.” Carving out Alaska recognizes that “critical services like telehealth, E911, and education services in the most rural parts of the country rely upon C-Band backhaul,” said a GCI Communications spokesperson.

Excluding Hawaii doesn’t seem detrimental to the islands, said Burt Lum, broadband strategy officer at the Hawaii Department of Business, Economic Development and Tourism. Satellite providers rely more on the spectrum in Hawaii than in the 48 contiguous states, where it’s easier to deploy fiber, and deploying 5G there will likely rely on combining different frequencies, he said. Hawaiian Telcom has no concerns about excluding Hawaii from the initial C-band auction since it doesn’t affect the carrier’s business, said a spokesperson: “Our teams continue to watch this issue closely to ensure we can continue to serve our customers.”