FCC Hears Satellite Arguments for C-Band Clearing Compensation
Setting a flat amount the FCC will pay satellite operators for relinquished C-band rights might be legal, but making it reasonable would be tough and outside the agency's expertise, said ABS Global CEO James Frownfelter. A percentage-based clearing payment would…
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use market forces to reach a fair value of the rights, said Frownfelter, per a docket 18-122 posting Friday on meetings with staffers including an aide to Chairman Ajit Pai and International Bureau Chief Tom Sullivan. Frownfelter said neither approach would violate the Miscellaneous Receipts Act. Eutelsat CEO Rodolphe Belmer met with Pai, Commissioners Brendan Carr and Jessica Rosenworcel and an aide to Commissioner Geoffrey Starks. The executive said that before the C-band auction, the agency should adopt a maximum total fixed satellite service reallocation cost and premium for expedited band clearing, giving bidders certainty on costs. Eutelsat said relocation costs and acceleration premiums eligibility should be conditioned on FSS incumbents supporting the C-band transition. It said its $3.5 billion relocation costs estimate, which includes lost revenue opportunity, isn't far from the C-Band Alliance's $2.6 billion. The company said discussed its proposed maximum potential premium for expedited band clearing of 50 percent of allowable relocation costs for satellite and earth station operators.