Satellite operator SES has, until recently, explained that it favoured just 100 MHz of C-band upper segment being cleared for the FCC to auction. The FCC is required to complete its competitive bidding auction process no later than July 2027 for at least 100 MHz. A ruling is expected from the FCC during the second-half of this year.

SES now says that the FCC favours a full 180 MHz of satellite spectrum released, although the FCC has yet to make its decision. SES is now backing 160 MHz of spectrum to be released.

SES CEO Adel Al-Saleh, speaking at the SES end-of-year results statement, updated analysts on the current position. “The draft notice of proposed rulemaking, also known as NPRM, was published by FCC last December and was followed by a round of stakeholder comments. SES filed its comments on January 20th and replied comments on February 18th, supporting FCC’s proposal for upper C-band clearance. SES remains fully committed to collaborating with FCC and all stakeholders to identify and implement the most effective technical solution that delivers mutual benefits for all parties involved. It is FCC stated intention to auction up to 180 MHz of spectrum in the upper C-band. The ‘one big beautiful bill’ requires the FCC to complete a system of competitive bidding for at least 100 MHz the upper C-band no later than July 2027.”

“We expect now FCC to move in second half of 2026 to issue their ruling,” Al-Saleh continued. “The FCC has clearly said they want to go as high as possible, up to 180 MHz. We would like them to go up to 160 MHz, leaving some C-band for very specific applications that we think will be beneficial. As I said, we are working closely with FCC, and we will support them, with their objectives, ensuring that our customers get the services that they need to have. It’s progressing. It’s picking up speed, actually.”

The new activity concerns the ‘upper’ C-band (3.98 to 4.2 GHz) which the FCC would auction to terrestrial telcos for 5G expansion.

“What we expect when the ruling comes out is FCC to decide how are they going to handle incentive payments and reimbursement payments for relocation costs,” Al-Saleh added.

These ‘incentive’ payments from the FCC could be huge. Back in Q4/2023 SES received a total of $3.97 billion for clearing almost 300 MHz of spectrum over the US. The FCC paid out a total of some $9 billion to Intelsat, SES, Eutelsat and Telesat.

Now, with SES owning Intelsat, SES’s reward could be significant, and more than enough to pay down some borrowings.

Intelsat’s former shareholders would receive 42.5 per cent of future spectrum-sale proceeds on the first 100 MHz that is freed up. Over and above that 100 MHz would be totally for the benefit of SES. But that still places 57.5 per cent – or thereabouts – into the SES bank account on the first 100 MHz. Should the FCC select either 160 or 180 MHz then this would mean an extra ‘incentive’ plus repayment of the significant actual costs in clearing the frequencies and moving clients to new transmissions.

The thinking now is that this new clearing – despite being smaller in overall bandwidth – could be more valuable than the Phase 1 activity back in 2020. The reason is the increased scarcity of spectrum and users seemingly insatiable desire for connectivity.

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Categories: 5G, Blogs, Inside Satellite, Satellite, Spectrum

Tags: FCC, SES