SES breaks down the estimated costs to clear the C-band. SES estimates the full cost of its C-band relocation program at $1.67 billion, and the operator provided a breakdown of the costs. SES’s transition plan to the FCC details the operators plans for manufacturing contracts to build four satellites and two ground spares, along with changes to its TT&C operations. The operator has also developed individual migration plans for each of its roughly 80 broadcast, cable, radio, religious and government customers to the upper 200 MHz of the C-band, including the corresponding changes required at 3,500 cable head-ends and 13,500 affiliate earth stations. Intelsat reports it has a team of more than 50 employees focused on the clearing initiative. As for the East Coast teleport, Intelsat is pursuing two options and expects to contract for this consolidated teleport site by the Fourth Quarter (Q4) of 2020. The majority will be transitioned to Intelsat’s new West Coast consolidated TT&C/Gateway teleport in Brewster, Washington.
A few of these services/carriers can be transitioned to its Paumalu teleport on the island of Oahu, Hawaii.
Intelsat currently operates teleports in three California cities - Riverside, Filmore, and Napa. Intelsat also plans to consolidate its Telemetry, Tracking, and Control (TT&C)/Gateway antennas into two remote locations on the East and West Coast of the United States. The operator is also currently in negotiations with manufacturers for a seventh satellite. Last week, Intelsat announced that Maxar Technologies will build and deliver four satellites, and Northrop Grumman will build and deliver two satellites. The operator is planning for the construction and launch of seven new satellites to create sufficient capacity to repack services and effectuate spectrum clearing. Intelsat’s plan estimates the total cost of its C-band replacement satellite portion of the transition plan, including launch, insurance, and program management, to be $1.18 billion. Intelsat is eligible to receive $4.87 billion, and SES is eligible to receive $3.97 billion. The operators will be eligible to receive incentive payments, in addition to relocation costs, if they clear the spectrum on the FCC’s timeline. The operators are working to meet the FCC’s accelerated clearing timeline to clear 100 megahertz of mid-band spectrum for commercial 5G deployment by the end of 2021, and another 180 megahertz two years later. Intelsat and SES both filed their C-band spectrum transition plans with the FCC last week on June 19.
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