Intelsat Responds to Remarks of FCC Chairman Ajit Pai in C-Band Proceeding
February 06 2020 - 1:40PM
Business Wire
Incentive clearing payments to certain satellite operators to
total $9.7 billion, exclusive of clearing costs
Draft Order expected on 7 February 2020
Intelsat (NYSE: I) today responded to remarks delivered by
Federal Communications Commission (“FCC”) Chairman Ajit Pai at an
industry event hosted by the Information Technology and Innovation
Foundation in Washington, D.C. The Chairman’s commentary previewed
the key elements of a highly anticipated draft order in the C-band
proceeding in which Intelsat has been an active participant since
2017. Once issued, the draft order is expected to detail the FCC’s
approach to clearing C-band spectrum to enable rapid and nationwide
5G network deployment in the U.S.
Intelsat CEO Steve Spengler said, “The issuance of the draft
order represents a significant milestone in a process that we began
in 2017. We look forward to reviewing the draft order, once issued,
to place Chairman Pai’s comments in full context. We note with
appreciation the hard work of all stakeholders to get to this
juncture, and the work to come leading up to the Commission’s vote
on February 28, 2020.”
During his remarks, Chairman Pai indicated that satellite
operators need to be incentivized to undertake the complex task of
clearing their licensed spectrum while protecting the television
and radio content distribution ecosystem using C-band today.
Specifically. the Chairman indicated a total of $9.7 billion of
incentive payments for certain satellite operators to clear the
spectrum on an accelerated basis, plus the reimbursement of the
costs for clearing.
In November 2019, the FCC announced its intention to pursue a
public auction of C-Band spectrum, which was a significant
departure from the market-based construct advocated by the
satellite industry. Despite that departure, Intelsat has never
wavered in its attempts to bring this critical spectrum to
market.
Founded in 1962, Intelsat has invested $36 billion to build its
C-Band business over the last 40 years. In the course of that time,
it has ordered 138 U.S.-manufactured satellites and created tens of
thousands of U.S. jobs. Intelsat is the largest provider of
communications services to the U.S. military, and is proud to have
recently carried the Super Bowl to a TV audience of 100 million
people, including over one million members of the U.S. armed forces
and their families overseas.
Beginning in September 2017, Intelsat advocated for an
innovative structure to clear significant additional spectrum for
5G mobile services, while continuing to deliver on commitments to
customers, such as Discovery, Disney, Fox, ViacomCBS and
WarnerMedia, who use Intelsat’s C-band to reach nearly 120 million
U.S. households. Since that time, it has become increasingly clear
that this initiative has the potential both to significantly
improve our national security and to enable the accelerated
deployment of 5G to catalyze a further continuation of what has
become the longest U.S. economic expansion in history.
Intelsat firmly supports Chairman Pai, the FCC and the
Administration in our shared goals of improving U.S. national
security, stimulating hundreds of billions of dollars in additional
U.S. economic growth and creating millions of new jobs for U.S.
workers. Intelsat will review and analyze the draft order to
determine its potential impact on Intelsat’s business and
stakeholders.
About Intelsat:
As the foundational architects of satellite technology, Intelsat
operates the world’s largest and most advanced satellite fleet and
connectivity infrastructure. We apply our unparalleled expertise
and global scale to connect people, businesses and communities, no
matter how difficult the challenge. Intelsat is uniquely positioned
to help our customers turn possibilities into reality –
transformation happens when businesses, governments and communities
use Intelsat’s next-generation global network and managed services
to build their connected future. Imagine Here, with us, at
Intelsat.com.
Safe Harbor Statement
Some of the information and statements contained in this press
release and certain oral statements made from time to time by
representatives of Intelsat constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that do not directly or exclusively relate to historical
facts. When used in this press release, the words “may,” “will,”
“might,” “should,” “expect,” “plan,” “anticipate,” “project,”
“believe,” “estimate,” “predict,” “intend,” “potential,” “outlook,”
and “continue,” and the negative of these terms, and other similar
expressions are intended to identify forward-looking statements and
information. Forward-looking statements include statements
regarding: the contents of the FCC’s draft order and final order in
the C-Band Proceeding; and expectations as to the amount of
incentive payments for satellite operators to clear spectrum in the
C-Band Proceeding; among others.
The forward-looking statements reflect Intelsat's intentions,
plans, expectations, anticipations, projections, estimations,
predictions, outlook, assumptions and beliefs about future events
and are subject to risks, uncertainties and other factors, many of
which are outside of Intelsat's control. Because actual events
could differ materially from Intelsat's intentions, plans,
expectations, anticipations, projections, estimations, predictions,
outlook, assumptions and beliefs about the future, you are urged to
view all forward-looking statements with caution. Intelsat does not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200206005823/en/
Dianne VanBeber Vice President, Investor Relations
dianne.vanbeber@intelsat.com +1-703-559-7406
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