UPDATE Intelsat and SES say they’ve cleared a 120 MHz swath of C-band ahead of the FCC’s deadline, paving the way to obtain more than $2 billion in combined proceeds. The satellite operators hold the largest share of the 500 MHz C-band in the U.S., according to SpaceNews. The satellite companies say the agency validated their activities needed to clear their spectrum by December 5, under Phase I of the regulator’s accelerated schedule.
“Over the past two years we have worked tirelessly to quickly clear spectrum while also carefully transitioning our customers’ services, and we are incredibly proud of what we have accomplished,” SES CEO Steve Collar said in a statement. “This was a tremendous undertaking, and our success reinforces our confidence in our ability to meet the FCC’s Phase II deadline in 2023.”
C-band holders in the U.S. are in line to receive $9.7 billion in total for clearing 300 MHz of the band for terrestrial 5G wireless operators by December 5, 2023, by moving customers to the upper 200 MHz of the band.
Intelsat and SES are set to get $4.9 billion and $3.97 billion, respectively, under the FCC’s plan. But SES is disputing Intelsat’s share of the proceeds in legal action taken at Intelsat’s bankruptcy court, according to the account. SES is one of Intelsat’s largest creditors in its Chapter 11 process, complicating the operator’s restructuring plans.
In August, Inside Towers reported, Intelsat said it had widespread support for a reorganization plan to cut the company’s debt by more than half to $7 billion. The operator is seeking approval from the U.S. Bankruptcy Court for the Eastern District of Virginia for this plan. A hearing was set to begin yesterday. If approved, Intelsat would emerge from bankruptcy as a private company.
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