Upper C-band auction offers another lift for GEO industry
The Federal Communications Commission has authorized a new auction for upper C-band spectrum set to occur by July 2027. This move provides a significant financial incentive for major satellite operators who are tasked with clearing frequencies to support terrestrial 5G wireless networks. The projected auction revenue ranges between 40.8 billion and 69.6 billion dollars, reflecting the high value placed on this mid-band spectrum for mobile connectivity.
SES leads the list of incumbents, with the potential to receive 5.6 billion dollars in incentive payments. To qualify for these funds, the company must meet strict clearing deadlines in 2030 and 2031. SES has already signaled its intent to procure five new hybrid Ku-band satellites with C-band uplink capabilities, projecting roughly 2.62 billion dollars in costs related to procurement, launch, insurance, and ground equipment. These capital expenditures provide a notable boost to the geostationary satellite sector.
Eutelsat and Telesat are also part of the plan, with 504 million dollars and 189 million dollars respectively earmarked for their contributions. Unlike SES, both companies are currently evaluating their fleet requirements. They have not yet committed to purchasing new spacecraft, noting that they may be able to manage the transition by shifting services to existing, idle capacity or alternative frequency bands like the Ku-band.
The transition process involves moving current services out of the specified range to the remaining 40 megahertz of the upper C-band. The FCC requires auction winners to cover the relocation costs, including any expenses that exceed the current estimate of 4 to 5 billion dollars. Each operator must submit their detailed clearing plans by November 5. This regulatory framework mirrors the 2020 auction that generated over 80 billion dollars, which served as a crucial revenue stream for the geostationary industry as it competes with emerging low Earth orbit broadband constellations.