Intelsat Raises, SES and Eutelsat Lower C-Band Clearing Prices

Intelsat is upping the estimated price tag for its part in the C-band clearing by more than $100 million, while SES and Eutelsat are dropping theirs, per updated transition plans posted Thursday in docket 18-122 (see 2106230038). The FCC didn't comment.

The transition cost is now $1.75 billion, up from the $1.64 billion estimate in its June 2020 transition plan (see 2006220006), Intelsat reported. The cost of C-band payloads on the seven replacement satellites Intelsat plans to put up is rising by $60 million, according to our side-by-side comparison of the plans. Intelsat said the total cost of the C-band payloads now is estimated at $850 million, or $121 million per satellite, instead of its earlier $790 million. Its launch cost pegs are now lower: $376 million for four launch vehicles and insurance, vs. $390 million. Total cost of the satellite replacement portion for the C-band transition will be $1.23 billion, it said. New is a $354 million customer mitigation and repacking plan estimate that includes integrated receiver/decoder hardware, testing and shipping costs, and filter hardware and installation. Also new is a footnote saying some Alaskan and Canadian customers, such as GCI, are receiving C-band services from satellites to be replaced and will be repacked in the lower 300 MHz to free the upper 200 MHz for continental U.S. customers. Intelsat said that grooming “would not have been necessary but for” the FCC requiring clearing of 300 MHz and is key to the transition plan and qualifies for reimbursement. Intelsat's updated plan goes up from 56 transponders to 31; the original plan said it would reduce from 49.4 transponders to 25.

Eutelsat's estimate is now $7.4 million, it said. Its year-ago estimate was $170.9 million, most of that coming from one C-band replacement satellite. While its 113 West A satellite was expected to reach the end of its life during the C-band switch, Eutelsat said now that 113 West A is expected to operate in a geostationary orbit until at least 2024, after the end of the accelerated C-band transition, and then in an inclined orbit for several years afterward.

SES lowered its overall estimate for related costs from $1.67 billion to $1.62 billion, per our side-by-side comparison of its plan update. Satellite replacement costs rose $79 million to $1.33 billion. Filter and antenna estimates were lower and the company cut by $84 million its estimate of unspecified other costs that include legal, relocation coordinator and clearinghouse expenses. It expects to complete Phase 1 and Phase 2 migration of existing services by Aug. 31, 2023.

Embratel's Star One C1 satellite, with which it provides C-band service to parts of Florida, is in an inclined orbit and will deorbit in late August or early September, it said. It said its replacement, Star One C2, has launched, with U.S. market access to operate in the Ku band but not the C band. It said it incurred some expenses in the C-band move and isn't seeking reimbursement.