New satellites and other C-band clearing expenses -- an estimated $1.2 billion worth through the end of 2021 and $1.6 billion in total -- helped prompt Intelsat to file for Chapter 11 bankruptcy Wednesday, said in its application with U.S. Bankruptcy Court in Richmond. Chief Financial Officer David Tolley said in a declaration (in Pacer, case 20-32299) the company intends to clear the lowest 120 MHz of the band by the Dec. 21, 2021, deadline to be eligible for $4.87 billion in accelerated clearing payments. Tolley said Intelsat has close to $15 billion in debt, but "business prospects remain healthy." He said it also has "materially lower revenues" due to COVID-19's effect on such key customers as airlines and cruise ships, and on its business carrying broadcast signals of sports and other live events. Tolley said the company has a commitment for financing that needs court approval but would give it enough working capital to clear the C band, fund the bankruptcy case and let Intelsat operate. An accompanying motion asked for permission to incur obligations for the clearing. It said its three-part clearance plan involves building and launching multiple satellites over the next 30 months to replace the capacity lost from the C-band compression upgrades and relocating teleport sites from urban to rural locations to mitigate 5G interference. The company asked the court to authorize it to implement the clearance on an accelerated schedule. The FCC emailed Thursday that it "appreciates Intelsat's statement that '[o]ne of the primary catalysts' for its voluntary filing for bankruptcy is a 'desire to participate in the accelerated clearing of C-band spectrum.' We will continue to move forward with the C-band auction process and look forward to working with satellite operators, wireless companies, and others toward that goal." Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., said Intelsat’s bankruptcy announcement “reveals what many suspected all along: Intelsat had no intention of accepting the FCC’s deal” on the C-band auction. The FCC “should withdraw its offer, take control of America’s spectrum and save taxpayers billions of dollars instead of shelling out that money to foreign companies,” Kennedy said. He has repeatedly raised concerns about the FCC’s C-band auction plan, including its proposal for $9.7 billion in incentive payments to Intelsat and other satellite incumbents (see 2003100022). SES also said it plans to make the accelerated C-band clearing deadlines (see 2005140055).
Some telecom companies taking part in the FCC Keep Americans Connected pledge are warning of mounting KAC costs -- hundreds of millions of dollars so far -- from not disconnecting subscribers for unpaid bills during the pandemic. Analysts said in interviews this month they don't expect expenses to be material -- for now. Chairman Ajit Pai asked telecom providers to extend their pledges through June (see 2004300044).
Broadband-only providers' statutory right to pole attachments isn't a significant issue because there are so few such providers and it's easy enough for them to expand their offerings beyond that to get pole attachment rights. That's according to a Federalist Society panel Monday about the U.S. Court of Appeals for the D.C. Circuit's Mozilla remand. There were no pro-Title II panelists, and such allies didn’t comment immediately. That title is part of the Telecom Act.
New language in the FCC's draft regulatory fees order on the agenda for when commissioners meet Wednesday (see 2004220048) might provide some rate relief for VHF satellites and foreign satellites that ping U.S. customers but don't have U.S. market access, but still would broadly levy U.S. regulatory fees on foreign-flagged satellites. That's according to satellite experts and an FCC official interviewed last week. Some consider 5-0 commissioner approval likely. Foreign satellite operators resisted the fee (see 2003240047), saying the issue needs more study.
Satellite operators reject concerns mobile network operators (MNOs) raised about terrestrial operations in the 27.5-28.35 GHz upper microwave flexible use service (UMFUS) band (see 2005050034). Verizon and U.S. Cellular red flags are "a last-minute sandbagging attempt" at getting the FCC to revisit settled out-of-band emission (OOBE) issues in the adjacent 28.35-28.6 GHz band, said SES/O3b, Inmarsat and Hughes/EchoStar in a docket 17-95 posting Thursday. They challenged the call for OOBE limits specific to earth stations in motion (ESIM) to protect UMFUS in the 27.5-28.35 GHz band, saying the millions of licensed fixed terminals communicating with geostationary orbit satellites haven't caused UMFUS problems, so extending those rules to non-geostationary satellites shouldn't, either. They said deployed ESIMs will be a fraction of the fixed blanket-licensed earth stations already authorized for the 28.35-28.6 GHz band, so aggregate interference also isn't a realistic worry. Viasat said the ability of ESIMs to operate on a co-frequency basis with UMFUS systems in the 27.5-28.35 GHz band is extraneous to the draft ESIM order on the May 13 commissioners' agenda (see 2004220048). It said internationally, there's an interference threshold to protect terrestrial fixed and mobile services from co-frequency ESIM operations on a cross-border basis, so terrestrial fixed and mobile operators need to plan co-frequency ESIM operations in the 27.5-28.35 GHz band. Verizon emailed it and other U.S. carriers "have made significant investments to deploy robust 5G services to Americans using the 28 GHz band. Given the stakes in the international race to 5G, it is important that the FCC consider the interference risk that the proposed new ESIM satellite operations would pose to incumbent 5G operations in the adjacent 28 GHz band." CTIA said it argued in conversations with aides to Chairman Ajit Pai and Commissioner Mike O'Rielly co-channel sharing between ESIMs and UMFUS isn't feasible and the spectrum frontiers proceeding was specific about allowing only limited siting of new earth stations in UMFUS bands.
Space experts anticipate many of the orbital debris regulatory proposals the FCC moved from April's order to an accompanying Further NPRM (see 2004230040) will be in a future second order. They spoke in interviews this week. Enforcement of the initial order likely wouldn't be until fall, so a draft order before next winter seems unlikely, said Satellite Industry Association Senior Director-Policy Therese Jones.
Cable interests didn't agree about possibly eliminating the rule that cable operators maintain records in online inspection files about attributable interests in video programming services, in docket 20-35 comments posted this week. An NPRM on axing or modifying the rule was approved at commissioners' March 31 meeting (see 2002280044). Verizon said Tuesday there's "simply no basis" for requiring cable operators to keep attributable interest records in their public inspection files because the agency or local franchise authorities can just request records from operators, and responding to those requests is less burdensome for operators. NCTA called the rule "regulatory underbrush [that] serves no meaningful purpose." ACA Connects said vertical integration information could be useful in bringing a program access complaint but urged the FCC to find "a less burdensome" means for making it available. It suggested such possibilities as eliminating the part of the rule requiring reporting carriage of a particular system, or revising rules to require cable operators post the information only once and then make updates when it changes.
The Disaster Distress Helpline had a big jump in traffic attributed to the COVID-19 pandemic, though other emergency helplines haven't had increases, administrators told us. The pandemic could intensify a push for implementation of 988 as the nationwide three-digit suicide prevention and mental health crisis hotline because of the need for an easy-to-remember accessible service, said Vibrant Emotional Health President Kim Williams. Lawmakers are pushing for Capitol Hill leaders to include the National Suicide Hotline Designation Act (HR-4194/S-2661) in the next COVID-19 stimulus legislative package.
A slowdown in video customers canceling service might be temporary, resulting from shelter-in-place orders, Charter Communications CEO Tom Rutledge said Friday, announcing Q1 results. He said the company expects residential broadband demand to stay strong, but unemployment and economic issues could be a headwind. Nonpolitical advertising in March was down 18% year over year in large part due to sports cancellations (see 2005010011), Chief Financial Officer Chris Winfrey said. Q2 for advertising “will be challenging,” he said, saying Charter expects ads to pick up when the economy picks up. He said 140,000 customers are in its disconnection protection program, with 65,000 of them carrying past-due balances beyond the point of normal disconnection. He said those numbers are likely to grow in Q2. Charter has 25.47 million residential broadband customers, up 1.45 million; 15.55 million residential video customers, down 400,000; and 9.36 million residential voice customers, down 655,000. In Q1, it lost 70,000 video customers compared with a loss of 152,000 in Q1 2019. Revenue was $11.7 billion, up 4.8%. Rutledge said the FCC's April 6 GHz order (see 2004240011) was "a transformational step for broadband," but it didn't affect what value Charter might see for citizens broadband radio service auction spectrum.
The public interest in the FCC disclosing the IP addresses, user-agent headers and related time stamps of net neutrality proceeding comments filed in its electronic comment filing system "is great because the importance of the comment process to agency rulemaking is great." That's according to Judge Lorna Schofield of U.S. District Court for the Southern District of New York in an order Thursday (in Pacer, docket 18-cv-08607) granting a summary judgment motion by New York Times Co. It sued after the agency denied its Freedom of Information Act request for the application programming interface proxy server log containing the requested information (see 1809200023). The order denied an FCC motion for summary judgment and a Times motion for Plaintiffs’ motion for reasonable attorneys’ fees. The commission didn't comment. Litigation "should not have been necessary to get this vital information," emailed Benton Institute Senior Counselor Andrew Schwartzman. "I hope the Commission will now comply promptly rather than drag things out with appeals that will not succeed." Tweeted Commissioner Jessica Rosenworcel: "It's time for the agency to come clean."