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Intelsat and SES have ordered 10 replacement C-band satellites ahead of the FCC’s auction from Boeing, Maxar, and Northrop Grumman.
Eutelsat disclosed the satellite need in its C-band transition plan, a document the FCC required from Eutelsat, Intelsat, SES, Telesat, and Claro by 2020-06-19.
The FCC released the operators’ C-band transition plans between 2020-06-19 and 2020-06-22.
Eutelsat’s inclusion in the FCC’s $9,700,000,000 accelerated clearing program implies the replacement satellite will likely need to be ordered in the coming months to be in orbit by 2023.
Senator John Kennedy criticized the FCC’s $9,700,000,000 incentive program for motivating satellite operators to clear spectrum up to two years ahead of the 2025 deadline.
The FCC’s $9,700,000,000 incentive program is in addition to the reimbursable costs for upgrading ground systems and replacing satellites.
The FCC approved a $9,700,000,000 accelerated clearing incentive program in 2018-02-01 to motivate satellite operators to migrate customers out of the lower portion of U.S. C-band (3,700–4,000 megahertz) by 2023-12-05.
The FCC estimates moving costs for Intelsat, SES, Eutelsat, Telesat, and Embratel Star One will be $3,000,000,000 to $5,000,000,000 to cover upgrading ground systems and building and launching replacement satellites.
SES and Intelsat are racing to clear 300 megahertz of C-band spectrum by 2023-12-05 to obtain accelerated clearing payments for vacating the band two years ahead of the FCC’s deadline.
Under the FCC plan, SES will receive $3,970,000,000 and Intelsat will receive $4,870,000,000 in accelerated clearing payments tied to C-band spectrum relocation.
The SES C-band replacement satellites are designed mainly to ensure more than 120 million homes can continue to receive television broadcasts after the FCC transfers satellite spectrum from 3.7–4.0 gigahertz to cellular 0.005 kg network operators.
The FCC plan requires bidders in the agency’s 2020-12-08 C-band spectrum auction to pay satellite operators incentive payments in addition to reimbursing the cost of new C-band infrastructure.
If Intelsat clears customers from the 300-megahertz C-band swath by 2023-12-05, Intelsat will receive $4,870,000,000 in accelerated clearing payments through the FCC.
Viasat was the only satellite operator to win funding in the FCC’s previous rural broadband program, Connect America Fund 2, in 2018.
The first phase of the Rural Digital Opportunity Fund runs through 2030 and will dole out up to $16,000,000,000 to providers that meet the FCC’s criteria for affordable high-speed, low-latency broadband to underserved rural regions.
FCC Commissioner Geoffrey Starks supports expanding eligibility for the low-latency performance tier and expects commission staff to evaluate applications on their merits.
The FCC’s Rural Digital Opportunity Fund will award a total of $20,400,000,000 in two phases.
Any broadband providers wishing to qualify to participate in the FCC’s reverse auction scheduled for 2020-10-29 must submit short-form applications by 2020-07-15.
The Federal Communications Commission will allow low Earth orbit (LEO) broadband constellations to compete for Rural Digital Opportunity Fund subsidies as a low-latency service effective 2020-06-09.
Viasat is willing to build a LEO broadband constellation if it can win a meaningful portion of the FCC’s subsidies.