SES/Intelsat Gets FCC Approval
The FCC Space and Wireless bureaus and Office of Engineering and Technology signed off Friday on license transfers needed as part of SES' $3.1 billion purchase of Intelsat. It put no special conditions on the transaction. SES/Intelsat is likely to result in lower costs from synergies, better network quality, increased investment, national security benefits "and the creation of a more vigorous satellite competitor," the bureaus said in a 35-page order.
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The transaction, announced 15 months ago, was not expected to see big regulatory challenges (see 2404300048).
While there had been concerns raised about the grip that the new combined company would have on C-band delivery of media content (see 2410010018), the FCC said its analysis jibes with SES' and Intelsat's contention that fiber is widely available as an alternative delivery technology for media services. The two satellite companies also aren't direct competitors for in-flight connectivity, maritime connectivity or U.S. government services, so their merger won't hurt competition in those markets, the agency said.