Satellite operators poised for $9 billion payday after clearing C-band spectrum

A SpaceX Falcon 9 rocket launched early with the last of a dozen new C-band video relay satellites purchased by Intelsat and SES to help clear spectrum for the rollout of 5G wireless services in the US. Intelsat and SES, two of the world's largest geostationary communications satellites operators, are on track to receive nearly $9 billion in incentive payments from 5G cell network operators by the end of 2024. The payments are due after Intelsat and SES clear the lower 300 MHz of C-band spectrum, which is being transitioned from satellite services to terrestrial 5G under the supervision of the Federal Communications Commission. The FCC auctioned the C-band spectrum for the rollout of 5G services in 2020. Verizon and AT&T took the lion's share of the $80 billion auction. In order to enable the 5G transition, Intelsat and SES purchased new satellites in 2020 designed to operate in a different portion of the C-band spectrum. Although the communications satellite industry is shifting to focus on Internet connectivity—a trend highlighted by new mega-constellations like SpaceX's Starlink—there's still a substantial market for traditional C-band services, primarily for cable television and video distribution that reach more than 100 million homes and businesses across North America.