Intelsat is a multinational satellite services provider, delivering services to commercial, governmental, and military organizations. Operating one of the world's largest integrated satellite and terrestrial networks, the company offers video broadcasting, broadband connectivity, and secure satellite communications. Intelsat partners with organizations like Vodafone, Gilat Satellite Networks, and SKY Perfect JSAT Corporation, and works with launch providers such as Arianespace and International Launch Services to manage its satellite program from design and construction through launch and in-orbit operations.
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The FCC will scrap a $9,700,000,000 spectrum clearing incentive package approved last week if Intelsat and SES do not both agree to the terms.
Intelsat’s $4,870,000,000 eligibility is $13,600,000 higher than the FCC’s original plan and lower than the $5,800,000,000 to $6,500,000,000 the company sought.
Appaloosa purchased a 7% stake in Virginia- and Luxembourg-based Intelsat last month with the purpose of pushing Intelsat to seek a larger share of clearing payments.
Under the FCC’s final allocations, Intelsat remains eligible for 50% of the total $9,700,000,000 accelerated clearing payments.
Eutelsat quit the C-Band Alliance in 2022 and Intelsat declared the alliance dead in February 2023.
Northrop Grumman’s Mission Extension Vehicle 1 launched in October 2019 and docked in orbit with an Intelsat communications satellite to extend the spacecraft's operation by five years.
Intelsat, SES, Eutelsat, Telesat, and Embratel Star One are collectively eligible to win up to $9,700,000,000 in accelerated payments if they clear 300 megahertz of C-band spectrum by 2023-12-05.
Under the FCC proposal released 2020-02-07, Intelsat would be entitled to the largest share of the $9,700,000,000 in incentive payments.
Telesat and SES asked the U.S. Federal Communications Commission to reject Intelsat’s request for a larger share of $9,700,000,000 in incentive payments for C-band clearing.
A combined allocation of $7,500,000,000 or more to Intelsat and Eutelsat would reduce the shares available to SES and Telesat under the FCC plan.
SES and Telesat say the scope of work for clearing C-band has not changed since Intelsat, SES, Eutelsat, and Telesat jointly commissioned a study as part of the C-Band Alliance in 2018.
Eutelsat requested that Intelsat receive 62.6% ($6,070,000,000) of the proposed incentive payments and that Eutelsat receive up to $1,470,000,000.
Intelsat argues that a 60–67% share of the incentive payments is more in line with the work it needs to do to clear its portion of C-band by the end of 2023.
Intelsat requested that the FCC increase its potential $4,850,000,000 share of the $9,700,000,000 to at least $5,800,000,000.
If the FCC maintains its original allocations, 50% of the incentive payments would go to Intelsat and 41% would go to SES, with the remaining 9% allocated to Eutelsat, Telesat, and Embratel Star One.
SES and Telesat released a joint letter on 2020-02-25 arguing that Intelsat’s justification for seeking more than a 50% share of the $9,700,000,000 is not valid.
Intelsat plans to dock MEV-2 with its host satellite while the host remains in geostationary orbit rather than conduct the rendezvous in a higher orbit.
Northrop Grumman is building a second Mission Extension Vehicle for Intelsat that is on track to launch later in 2020.
Eutelsat helped form the C-Band Alliance with Intelsat, SES, and Telesat in 2018 and quit the group in 2019 after disagreeing with its members.
Intelsat requested that it receive 60% to 67% of the proposed $9,700,000,000 in accelerated clearing payments on the basis that it must clear the largest share of North American C-band spectrum.