CBA comments help satellite players
July 29, 2019
By Chris Forrester
A few positive words on July 26th from SES CEO Steve Collar on the prospects for a favourable agreement from the FCC helped send share prices for the key member of the C-Band Alliance on a firm upward trajectory.
For example, Intelsat – which would be a major beneficiary of an FCC agreement – rose 4 per cent in trading.
SES rose a thumping 9.54 per cent although helped by its own set of improving financial results.
Eutelsat, a minor beneficiary of a positive FCC decision, still managed a 2.1 per cent improvement.
Canada-based Telesat, measured against Loral Space which owns 63 per cent of the company, and another minor beneficiary of any sort of favourable FCC decision also saw a 2.2 per cent improvement on July 26th.
Collar told analysts that the economic cost annually of a delayed C-band decision would be about $50 billion to the US economy. “The FCC obviously drives the timing, but with the focus that we’re seeing in the ensuring that the [information] is complete and with comments of the [FCC] Chairman that he expects to have results to show this fall, I’m more and more optimistic than we’ll have clarity on the process over the course of the next several months. C-band is starting to crystallise a lot of work with stakeholders across the board. And I’m optimistic about our role in creating a real win-win in the US with our solution.”
Collar’s best guess at when the FCC will deliver its decision is (possibly) around the end of Q3, or during Q4.