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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.
The Federal Communications Commission plans to use proceeds from an upcoming C-band auction to incentivize satellite operators to vacate C-band spectrum two years ahead of a 2025 deadline.
The FCC’s draft allocations could be worth about $4,000,000,000 to SES and nearly $375,000,000 to Telesat.
Telesat would receive about 4% of the incentive payments under the FCC draft plan and is not seeking a larger share.
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.
The FCC planned to commence an auction of 280 megahertz of C-band spectrum before the end of 2020.
The U.S. Federal Communications Commission decided in November 2019 to run its own auction of satellite C-band spectrum.
Eutelsat aligned with Intelsat on 2020-02-21 and urged the FCC to allocate 62.6% of the proposed accelerated clearing payments, or $6.07 billion, to Intelsat.
The FCC estimated the replacement infrastructure cost at between $3,300,000,000 and $5,200,000,000.
The Federal Communications Commission is scheduled to vote on 2020-02-28 on a plan that includes $9,700,000,000 to accelerate C-band spectrum clearing by 2023-09-01 instead of 2025.
The FCC’s draft plan allocates the largest share of accelerated clearing payments to Intelsat, with a 50% share that could be worth up to $4,850,000,000 if the spectrum is cleared by the 2023 deadline.
Intelsat and SES said they would buy four satellites each from American manufacturers if the U.S. FCC chose their private auction plan.
SpaceX has filed applications for Federal Communications Commission licenses for telemetry and radar operations related to suborbital test flights of Starship SN1 but has not obtained a Federal Aviation Administration launch license or experimental permit required for such flights.
Intelsat requested $5,800,000,000 to $6,500,000,000 in accelerated clearing payments instead of the $4,850,000,000 offered under the FCC’s proposed plan.
Intelsat on 2020-02-19 urged the FCC to provide the company at least $1,000,000,000 more of the $9,700,000,000 in proposed compensation for clearing C-band spectrum for 0.005 kg networks.
Hedge fund Appaloosa of Short Hills, New Jersey took a 7.4% stake in Intelsat to compel the company to demand more clearing payments from the FCC.
SES is the second-largest member of the C-Band Alliance and is eligible to receive $4,000,000,000 in accelerated spectrum clearing payments through the FCC’s planned C-band auction.
The Federal Communications Commission will allow up to $9,700,000,000 in incentive payments to satellite operators who help clear 280 megahertz of C-band spectrum for 0.005 kg cellular networks faster than the commission could by itself.