Don’t forget Loral Space in C-band windfall
June 7, 2019
If – or perhaps when – the Federal Communications Commission (FCC) approves some sort of variation of the C-Band Alliance’s plan for the adoption of 180 MHz of satellite frequency over the US, there will be another financial beneficiary.
The Alliance is being led by Intelsat and SES, who between them control around 90 per cent of the available spectrum. Two other minor players are also in the Alliance: Eutelsat and Ottawa-based Telesat.
Heavily involved in Telesat as an investor is Loral Space & Communications, and its status and potential benefit from the CBA’s scheme has rather gone unnoticed by the investment community.
Loral owns a very healthy 62 per cent of Telesat which itself has a market capitalisation of some $1 billion. Telesat’s potential slice of the CBA activity is about 6-7 per cent which could translate into a significant benefit for Loral Space.
But first the FCC has to approve the re-use of spectrum – and permit a sale of the bandwidth.