Intelsat completed its transition to C-band frequency spectrum as part of the Federal Communications Commission’s 2020 report and order to make 300 Megahertz of the band available for flexible use in 5G networks and other satellite services.
The C-band spectrum clearing entitles Intelsat to $3.67 billion in FCC incentives, which are set aside for satellite operators that can finish the reallocation before December 2023, the company said Monday.
The FCC had set a December 2025 deadline for operators to relocate a portion of the frequency. Since Intelsat was certified early, it will receive nearly $3.7 billion in accelerated relocation payments by the fourth quarter of this year.
“Intelsat’s C-band transition facilitates broader 5G services in the United States, while strengthening our financial position,” remarked Intelsat CEO Dave Wajsgras.
“Half of these proceeds will be used to deleverage our balance sheet, consistent with our debt covenants, while the remainder provides Intelsat with various options to create value and opportunities for all of our stakeholders,” explained Wajsgras, a seven-time Wash100 awardee.