Intelsat monetises completion of C-band clearing for 5G

Intelsat has completed its C-band frequency clearing process for which it will receive nearly $3.7 billion in payment from the U.S. Federal Communications Commission (FCC).

The commission had set deadline stages to clear the spectrum, but had also offered landmark incentive payments to satellite operators. These were to clear the mid-range (3.7 – 3.82 GHz) of the frequency (3.4 – 4.2 GHz) by 5 December 2021 and the remaining 180 MHz (3.82 – 4.0 GHz) by 5 December 5, 2023.

With the necessary FCC certification now complete, Intelsat says it will receive “accelerated relocation payments” totaling $3.67 billion.

5G

Satellite operators have been undertaking the frequency clearing to allow the use of C-band for terrestrial 5G telecomms in the States.

“Intelsat’s C-band transition facilitates broader 5G services in the United States, while strengthening our financial position,” said Dave Wajsgras, CEO at Intelsat (pictured). “We reached this milestone well ahead of expectations, and I’m exceptionally proud of the Intelsat team and the hard work that led to this remarkable achievement.”

“Half of these proceeds will be used to deleverage our balance sheet, consistent with our debt covenants, while the remainder provides Intelsat with various options to create value and opportunities for all of our stakeholders. The Intelsat team is well positioned to remain a leader in the satellite communications industry as we continue transforming the company for the future.”

C-band

To accommodate the demand for 5G in the U.S., the FCC in 2020 ordered the clearing of 300 of the 500 megahertz of C-band spectrum over the continent that was licensed to five satellite operators. With Intelsat the largest holder of C-band licenses, the other four operators were Eutelsat, SES, StarOne and Telesat.

In total Intelsat was eligible to receive up to $4.87 billion in incentive payments for meeting all the Commission’s deadlines of clearing 120 MHz of spectrum. These payments have been funded by the winning bids – of wireless operators – in the FCC’s public C-band auction.

Intelsat previously chose Maxar Technologies and Northrop Grumman to design and manufacture the satellites – subsequently launched – that were required to transition its services to the 4.0 – 4.2 GHz portion of the band.

See also: Intelsat starts monitoring rush-hour pollution for NASA