CBA: FCC to decide this week

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Reports indicate that the Federal Communications Commission (FCC) will announce this week its decision and key proposals as to how it will manage an auction of C-band satellite frequencies over the US.

A Bloomberg News report adds that FCC Chairman Ajit Pai intends to circulate a C-band proposal (most likely on February 6th or 7th) and seek a vote at its scheduled February 28th meeting.

Bloomberg specifically states that the FCC is seeking to limit payments to satellite operators to “below” $10 billion, although the report does not specify whether this sum includes only the financial incentive or also includes the relocation and ground-based filtering costs.

Deutsche Bank in a note to investors says: “The topic of C-band payment remains fluid with different sources suggesting that FCC payment could range from “low single-digit-billion dollars” to $5 billion. We calculate the SES implied share would be €2-3 per share on the revised C-band net proceeds; adding to our core SES valuation of €11, would suggest a €13-14 valuation vs the €10.5 close on January 30th.

Meanwhile, US aerospace giant Boeing on January 31st came out firmly in favour of the CBA, and urged the FCC to “exercise caution” in how it was dealing with satellite operators. “[They] must be compensated adequately,” says Boeing and adds that the US satellite industry is looking forward to receiving orders for new satellites which will provide additional employment for US companies such as Boeing.


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