Last week it was reported that SES Americom was arguing with Intelsat’s bankruptcy court that Intelsat should pay $1.8 billion in compensation and damages to SES because of an alleged “contract violation” over the pair’s C-band Alliance (CBA) agreement and the clearance of spectrum for 5G.
SES Americom is alleging that it and Intelsat had reached an agreement within the CBA to divide the proceeds with a percentage going to the other smaller members of the CBA (at the time Telesat and Eutelsat) but that Intelsat “repudiated its obligations” once the FCC issued its draft order in February.
Eutelsat exited the CBA in September last year.
At the time SES was furious and described Intelsat’s move as an “egregious attempt to capture a greater share of the proposed accelerated relocation payments.”
For the avoidance of doubt Intelsat was a fully paid-up member of the CBA right up to the date in February this year when Intelsat – in the words of SES – wrongfully repudiated the agreement it had with the CBA and abandoned SES as the other key member of the Alliance.
Intelsat evidently fully contributed to all the CBA activities in coordination with SES up to the point of exit. This is evident from the joint filings that the CBA made to the FCC up to that date.