TAMPA, Fla. — The Federal Communications Commission has formally kicked off a process to explore new uses for upper C-band satellite spectrum in the United States, potentially paving the way for another windfall for incumbent operators.
The regulator approved a public consultation Feb. 27 to identify ways to spur investments and incentivize the rapid and efficient deployment of new communications services in the 3.98-4.2 gigahertz (GHz) band, which is mainly used by satellite operators to distribute TV services.
In 2020, the FCC generated more than $80 billion from auctioning off 280 megahertz (MHz) of lower C-band spectrum (3.7-3.98 GHz) to Verizon, AT&T, T-Mobile and other terrestrial 5G players.
About $13.4 billion of those proceeds were allocated to incumbent spectrum holders — primarily SES and Intelsat — to encourage them to quickly relocate services into the remaining 200 MHz of C-band and cover relocation costs, including new satellites.
How closely the FCC follows that playbook this time remains to be seen. Brendan Carr, chairing an FCC open meeting for the first time Feb. 27, emphasized that all options are on the table.
SpaceX, which operates the Starlink broadband constellation, is advocating for a framework that would enable a mix of space and terrestrial communications operators to share C-band spectrum, as SES and Intelsat plan a merger that would consolidate their spectrum holdings — accounting for more than 90% of upper C-band.
The FCC’s authority to conduct most spectrum auctions also lapsed in 2023, and the regulator is calling on Congress to restore it.
FCC commissioners unanimously approved launching a Notice of Inquiry (NOI) on upper C-band, setting a 90-day deadline for comments, followed by another 90 days for replies and responses.
Up in the air
During a Feb. 26 earnings call, SES CEO Adel Al-Saleh said it is technically possible to clear at least 100 MHz of C-band while protecting existing services.
Achieving this would require detailed engineering work, he said, but “how much actually gets cleared is still unclear” because it depends on the FCC’s consultation process.
“But their objective is very clear,” he added, “to get as much as possible.”
According to Al-Saleh, the value of C-band has also increased over the past few years, not only for mobile operators looking to meet rising demand for connectivity but also for companies pursuing emerging direct-to-device (D2D) capabilities.
“It’s a very valuable piece of real estate,” he said. “But we need to let the process play out in order to understand what the potential future compensation could be.”
