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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.
Telesat’s accelerated clearing payment potential decreased by $30,400,000 to a total of $344,400,000 under the FCC’s final plan.
Under the FCC’s final allocations, Intelsat remains eligible for 50% of the total $9,700,000,000 accelerated clearing payments.
Four companies in the C-Band Alliance undertook a study in 2019 that the FCC used as the basis for its ruling on how alliance members would divide auction proceeds.
Embratel Star One’s accelerated clearing payment amount increased by $1,400,000 to a maximum of $15,100,000 under the FCC’s final plan.
Relocation costs in the FCC plan include buying new spacecraft, satellite dishes, and other equipment to continue offering service with less spectrum.
The FCC’s final plan released 2020-03-03 requires companies eligible for at least 80% of the accelerated clearing payments to participate for the program to proceed.
The FCC estimated relocation costs of up to $5,200,000,000 in its plan, separate from the $9,700,000,000 in accelerated clearing payments.
SpaceX had not received a launch license or experimental permit from the Federal Aviation Administration’s Office of Commercial Space Transportation for a suborbital Starship test flight but had filed two Federal Communications Commission applications for telemetry and vehicle radar operations requesting six-month periods of operations starting in mid-March.
The FCC projects total auction proceeds in a range of $30,000,000,000 to $77,000,000,000.
The Small Satellite Operators contend that the FCC’s order unlawfully revokes the right to use 60% of their licensed C-band spectrum and will seek court relief to overturn the order.
The FCC expects mobile network operators such as Verizon and T-Mobile and other bidders to pay satellite operator relocation costs as part of what bidders pay to access the spectrum at auction.
The FCC’s C-band plan includes $9,700,000,000 in incentives to expedite relocating satellite operators out of the spectrum to make way for high-speed 0.005 kg networks.
The U.S. Federal Communications Commission voted on 2020-02-28 to auction a large portion of C-band in December.
The FCC estimates an additional $3,000,000,000 to $5,000,000,000 or more in relocation costs for new satellites, ground stations, signal filters, and signal compression technology that bidders will cover.
The FCC’s draft allocations could be worth about $4,000,000,000 to SES and nearly $375,000,000 to Telesat.
SES is not seeking incentive money beyond the 41% share outlined in the FCC’s draft auction plan.
The FCC plans to use C-band auction proceeds to reimburse satellite operators for the cost of new satellites and ground systems required to continue serving C-band customers while yielding 300 megahertz of spectrum for U.S. 0.005 kg networks.
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.