Intelsat, SES, Telesat Pick Faster C-Band Clearing; Others Seen Doing Same
Intelsat, SES and Telesat committed to clear the C band on the FCC's incentivized accelerated timeline days before the deadline. SES said it's also filing a petition for review and notice of appeal in federal court to protect itself if the accelerated payments regime falls through. Other C-band satellite operators are expected to do likewise. The elections deadline is Friday.
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Eutelsat is pushing the FCC for more clarity on C-band relocation cost eligibility and associated requirements, cost allocation criteria and transparency about cost eligibility disputes.
Satellite lawyers told us they don't see any reason any operator wouldn't make the accelerated relocation election under the present circumstances. Telesat and SES elections were posted in docket 18-122 Tuesday. SES said its board approved spending $1.6 billion on reimbursable expenses such as new satellites and other equipment and services. It said most of the spending will be with U.S. suppliers. It said it secured deferred payment terms with satellite program vendors associated with the accelerated clearing.
Intelsat "is committed to advancing -- at an accelerated pace -- America’s position in the race to 5G," CEO Stephen Spengler said Tuesday. "With decades-deep institutional knowledge of the U.S. C-band, we understand what’s required to successfully and quickly transition current users, while maintaining high-quality, uninterrupted broadcast to more than 100 million American homes and businesses.” Its election wasn't posted Tuesday in the FCC's electronic comments filing system.
Intelsat is eligible for up to $4.85 billion in accelerated relocation payments, SES $4 billion, SES $374 million (see 2002070016). Intelsat, Eutelsat and counsel for small satellite operators (SSO) ABS Global, Empresa Argentina de Soluciones Satelitales and Hispasat didn't comment Tuesday.
If the accelerated relocation payments laid out in the C-band order aren't available to satellite operators, the court should vacate the part of the order requiring clearing the 3.7-4 GHz band by December 2025, SES emailed us. It didn't make a copy of the court petition available by deadline. SES outside counsel Brian Weimer of Sheppard Mullin told us the court petition could be moot if enough C-band operators opt for accelerated clearing and if challenges to the FCC order are unsuccessful. The agency didn't comment. The SSOs said they would challenge the C-band order in court if the FCC didn't act by Monday on their petition for stay (see [Ref:2005180036]). Nothing was filed with the U.S. Court of Appeals for the D.C. Circuit Tuesday at close of business.
The FCC should make clear that only satellites that support just C-band services over the continental U.S. for their entire useful life will be eligible for reimbursement, guaranteeing unrelated and unnecessary activities of incumbents won't be subsidized, Eutelsat said in a docket 18-122 petition for expedited clarification or consideration posted Tuesday. Lack of that clarity would mean uncertainty in the transition plans due with the FCC June 12, plus delays in the transition, it said. It urged the commission to make clear what standards and allocation criteria will go into determining "reasonable" and "necessary" new C-band satellite costs and excluding costs not considered compensable. The company discussed clarity with Wireless and International Bureau staff. And it petitioned for limited waiver of the June 12 deadline, letting it file its transition plan two weeks or more after the FCC acts on its expedited recon petition. Otherwise, it must submit its transition plan based on incomplete information that can't be easily amended, it said.
The C-Band clearing order, adopted in March (see 2002280044), takes effect Wednesday, says Wednesday's Federal Register.
U.S. Bankruptcy Judge Keith Phillips of Richmond approved Intelsat in its bankruptcy implementing the C-band clearance (in Pacer) earlier this month, as it requested (see 2005140028). Phillips authorized the company spending up to $500,000 on agreements with C-band vendors for new equipment or technologies needed. He authorized the company to file an accelerated relocation election with the FCC by this Friday's deadline.