C-Band Transition – News Update
The 3.7 – 4.2 GHz band is currently allocated in the U.S. exclusively for non-Federal use on a primary basis for Fixed Satellite Service (FSS) and Fixed Service. For FSS, the 3.7-4.2 GHz band (space-to-Earth or downlink) is paired with the 5.925-6.425 GHz band (Earth-to-space or uplink), and collectively these bands are known as the conventional C-Band.
The FCC is transitioning the 3.7 – 4.2 GHz C-Band to make room for 5G, mobile, and wireless broadband services. Specifically, the FCC is allocating the 3.7 – 4.0 GHz portion of the band for flexible use. A total of 280 megahertz (3.7 – 3.98) will be auctioned by the FCC for flexible use wireless services in the contiguous U.S. There will be a 20 megahertz guard band (3.98 – 4.0). Existing satellite operations will be repacked into the upper 200 megahertz of the band (4.0 – 4.2). The FCC’s C-Band auction is scheduled to begin on December 8, 2020.
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FCC Releases Bidding Procedures For C-Band Spectrum Auction
August 6, 2020 – The Federal Communications Commission has released a Public Notice establishing the procedures to be used for Auction 107, also known as the C-Band spectrum auction. Bidding is set to begin on December 8, 2020. The FCC’s Public Notice contains the following important details:
Auction 107 will offer 5,684 new flexible-use overlay licenses for spectrum in the 3.7–3.98 GHz band –referred to as 3.7 GHz Service licenses.
The 280 megahertz of spectrum available in Auction 107 will be licensed on an unpaired basis in three blocks divided into 20-megahertz sub-blocks by partial economic area (PEA).
3.7 GHz Service licenses will be issued for 15-year, renewable license terms.
A licensee in the 3.7–3.98 GHz band may provide any services permitted under terrestrial fixed or mobile allocations.
The FCC Form 175 short-form application filing window opens on September 9, 2020, at 12:00 p.m. eastern time.
The short-form filing window closes on September 22, 2020, at 6:00 p.m. ET.
Upfront Payments are due via wire transfer on November 2, 2020, at 6:00 p.m. ET.
Auction 107 will have upfront payments for a generic block in a PEA based on $0.015 per MHz-pop for PEAs 1–50, $0.0030 per MHz-pop for PEAs 51–100, and $0.0015 per MHz-pop for all other PEAs, subject to a minimum of $500.
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FCC Seeking Comment On Selection Of RSM US LLP To Serve As C-Band Relocation Coordinator
August 3, 2020 – The FCC’s Wireless Telecommunications Bureau is seeking comment on the selection of RSM US LLP to serve as the C-Band Relocation Coordinator to manage the overall 3.7 – 4.2 GHz transition and coordinate relocation actions among eligible Fixed Satellite Service (FSS) space station operators, incumbent FSS earth station operators, and new 3.7 GHz Service overlay licensees. Over two years ago, the FCC began the process of allocating the 3.7 – 4.0 GHz portion of the C-Band for mobile use. A total of 280 megahertz (3.7–3.98) will be auctioned by the FCC for flexible use. There will be a 20 megahertz guard band (3.98–4.0), and existing satellite operations will be repacked into the upper 200 megahertz of the band (4.0–4.2). The Relocation Coordinator will oversee this transition and coordinate all the moving parts. In the 3.7 GHz Report and Order, the FCC required that the Relocation Coordinator be able to demonstrate that it has the requisite expertise to perform the following duties: (1) coordinating the schedule for clearing the band; (2) performing engineering analysis, as necessary, to determine necessary earth station migration actions; (3) assigning obligations, as necessary, for earth station migrations and filtering; (4) coordinating with overlay licensees throughout the transition process; (5) assessing the completion of the transition in each PEA and determining overlay licensees’ ability to commence operations; and (6) mediating scheduling disputes. On July 31, 2020, eligible space station operators selected RSM US LLP (RSM) to serve as the Relocation Coordinator. Comment is sought on whether RSM satisfies the Relocation Coordinator criteria established by the FCC. Comments are due on or before August 18, 2020, and reply comments are due August 28, 2020.
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C-Band Transition: FCC International Bureau Releases List Of Incumbent FSS Earth Stations
August 3, 2020 – The FCC’s International Bureau has released the list of Fixed Satellite Service (FSS) earth stations in the contiguous United States that the Bureau has found satisfy the criteria to be classified as incumbent earth stations for purposes of the 3.7 – 4.2 GHz C-Band transition. The Bureau previously released a preliminary list of incumbent FSS earth stations, and sought comment on that list. Numerous parties requested minor corrections and provided notice of antennas that are no longer in use. Those changes have been made by the Bureau and are reflected in the list of incumbent earth stations. The Bureau also received more substantial requests and legal arguments, such as requests for new earth station registrations and renewal of expired registrations, which were rejected.
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C-Band Transition: FCC Seeking Comment On Clearinghouse Selected To Administer C-Band Relocation Payments
August 3, 2020 – The FCC’s Wireless Telecommunications Bureau is seeking comment on the sufficiency of the Relocation Payment Clearinghouse selected to handle all cost-related aspects of the 3.7 – 4.2 GHz C-Band transition. The FCC is reallocating 280 MHz of C-Band spectrum for flexible use, which will require transitioning existing services out of the lower portion and in to the upper portion of the band. In the 3.7 GHz Report and Order, the FCC directed a search committee to select a Clearinghouse that would oversee the transition and perform the following duties: (1) engage in strategic planning and adopting goals and metrics to evaluate its performance, (2) adopt internal controls for its operations, (3) use enterprise risk management practices, and (4) use best practices to protect against improper payments and to prevent fraud, waste, and abuse in its handling of funds. The search committee has selected CohnReznick and subcontractors Squire Patton Boggs (US) LLP, and Intellicom Technologies, Inc. (Intellicom), to serve as the Clearinghouse. Comment is sought on whether CohnReznick, Squire Patton Boggs, and Intellicom satisfy the criteria established by the FCC in the 3.7 GHz Report and Order. Comments are due on or before August 18, 2020, and reply comments are due August 28, 2020.
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FCC Releases Final Cost Category Schedule For C-Band Relocation Expenses & Announces Process For Electing Lump Sum Payments – Lump Sum Elections Due August 31st
July 30, 2020 – The FCC’s Wireless Telecommunications Bureau has released the 3.7 GHz Transition Final Cost Category Schedule of Potential Expenses and Estimated Costs. This Cost Catalog contains the categories and estimates of expenses that incumbent Fixed Satellite Service (FSS) earth station operators may incur as they clear FSS operations from the 3.7 – 4.0 GHz portion of the C-Band to make the lower 280 megahertz available for new flexible use licenses. In the 3.7 GHz Report and Order, the FCC required that new 3.7 GHz Service licensees will reimburse the reasonable relocation costs of eligible FSS space station operators, incumbent FSS earth station operators, and incumbent Fixed Service licensees to transition out of the band. Incumbent FSS earth station operators may accept either: (1) reimbursement for their actual reasonable relocation costs to maintain satellite reception; or (2) a lump sum reimbursement “based on the average, estimated costs of relocating all of their incumbent earth stations” to the upper 200 megahertz of the C-Band. Accordingly, the Cost Catalog also sets forth the amounts that will be available to incumbent FSS earth station operators electing to receive a lump sum payment in place of their actual reasonable relocation costs. It also contains details on the process for electing to receive lump sum payments. Lump sum elections are due August 31, 2020.
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FCC Releases Preliminary List Of C-Band Incumbent Earth Stations That May Be Eligible For Relocation Reimbursements
July 6, 2020 – The FCC’s International Bureau has released a preliminary list of Fixed Satellite Service (FSS) earth stations in the 3.7 – 4.2 GHz Band (C-Band) in the contiguous United States that may satisfy the criteria to be classified as incumbent earth stations for purposes of the C-Band transition. These incumbent earth stations may be reimbursed for relocating after the C-Band auction. In the March 2020 3.7 GHz Band Report and Order, the FCC “established that new 3.7 GHz Service licensees will reimburse the reasonable relocation costs of eligible incumbents, including incumbent FSS earth station operators, to transition to the upper 200 megahertz of the band.” To be eligible for a relocation reimbursement, an FSS incumbent earth station must meet the following qualifications:
1. Operational as of April 18, 2018 filing freeze and remain operational; and registered (receive-only) or licensed (transmit/receive) in the 3700 – 4200 MHz band.
2. If unregistered or unlicensed before April 18, 2018, registration or license applications must have been filed by November 7, 2018.
3. If registered or licensed before April 18, 2018, the registrant or licensee must have: (i) certified the accuracy of the registration/license information in the International Bureau Filing System (IBFS) by May 28, 2019; (ii) filed a modification/update to the registration or license in IBFS during the April 19, 2018 – November 7, 2018 filing window; or (iii) filed a timely renewal application for the existing registration or license by May 28, 2019.
The International Bureau has reviewed all earth stations with active or pending licenses or registration using the above criteria to initially determine those eligible for reimbursement. The Bureau has attached a detailed list to the Public Notice showing earth stations that may satisfy the incumbent earth station criteria. Interested parties may file comments in response to the list on or before July 16, 2020. Comments must reference IB Docket No. 20-205, and may be filed using the FCC’s Electronic Comment Filing System (ECFS).
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Satellite Operators Agree To Clear C-Band Spectrum On Accelerated Timeline
June 1, 2020 – The FCC’s Wireless Telecommunications Bureau has announced that satellite operators Eutelsat S.A., Intelsat US LLC, SES Americom Inc., Claro S.A. f/k/a Star One S.A., and Telesat Canada have committed to clear the 3.7-4.0 GHz band on the accelerated timeline described in the FCC’s 3.7 GHz Report and Order. Specifically, all five satellite operators have accepted, in aggregate, relocation payments that exceed the minimum threshold – 80% – established by the FCC, triggering an accelerated clearing of the C-Band. As a result, the satellite operators must clear 120 megahertz of spectrum in 46 Partial Economic Areas (PEAs) by December 5, 2021. Then, they must clear the lower 120 megahertz in the remaining PEAs, plus an additional 180 megahertz nationwide, by December 5, 2023. If the satellite operators fulfill the spectrum clearing commitments, they will be eligible for up to $9.7 billion in accelerated relocation payments plus reasonable relocation costs, paid for by the new flexible use licensees. The accelerated clearing is expected to result in faster 5G deployment in the C-Band. The FCC’s C-Band auction is scheduled to begin on December 8, 2020.
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FCC Releases Draft C-Band Auction Application And Bidding Procedures Public Notice
February 7, 2020 – The FCC has released a draft Public Notice which outlines proposed application and bidding procedures for Auction 107, an auction of new flexible-use overlay licenses in the 3.7–3.98 GHz band (C-Band). It will be voted on during the FCC’s next open meeting on February 28, 2020. The auction would offer fourteen 20-megahertz blocks of spectrum licensed by Partial Economic Area (PEA) service area, for a total of 5,684 new flexible-use overlay licenses. The Public Notice proposes to establish two categories of generic blocks in each PEA: Category A would consist of blocks in the lower 100 megahertz (3.7–3.8 GHz); and Category BC would consist of blocks in the remaining 180 megahertz (3.8–3.98 GHz). Auction 107 is tentatively set to commence on December 8, 2020.
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FCC Releases Draft C-Band Order
February 7, 2020 – The FCC has released a draft Report And Order And Order Of Proposed Modification which would repurpose the C-Band (3.7 to 4.2 GHz) for 5G and wireless broadband services. It will be voted on during the FCC’s next open meeting on February 28, 2020. According to the Fact Sheet, the draft order, if adopted, would require the following:
Clear the lower 280 megahertz of the C-band (3.7-3.98 GHz) in the contiguous U.S. and make it available for flexible use, including 5G, via a public auction. The 20 megahertz above that would serve as a guard band (3.98-4 GHz). Existing satellite operations would be repacked into the upper 200 megahertz of the band (4.0-4.2 GHz).
Set a deadline of September 2025 for clearing, and give satellite operators the opportunity to clear the lower portion of the C-band on an accelerated timeline, in exchange for accelerated relocation payments. The accelerated payments could total up to $9.7 billion and would be paid by winning bidders in the C-band auction. Eligible space station operators that choose to accelerate the clearing would have to meet the following accelerated timeline: (1) clearing 100 megahertz for terrestrial operations in 46 of the nation’s top 50 Partial Economic Areas by September 30, 2021; and (2) clearing the entire 280 megahertz for terrestrial operations in the contiguous United States by September 30, 2023.
Require incumbent fixed service licensees in the contiguous U.S. to relocate their point-to-point links to other bands by September 30, 2023.
Cover reasonable relocation costs of the C-band’s current users through reimbursement by the winning bidders in the C-band auction.
Establish a Relocation Payment Clearinghouse to manage the intake, payout, and auditing of relocation funds.
Establish a Relocation Coordinator to coordinate the transition between satellite operators and incumbent earth stations to ensure uninterrupted service during and following the transition.
Adopt service and technical rules for flexible-use licensees in the 280 megahertz of spectrum designated for transition to flexible-use.
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FCC Chairman Announces Details Of Plan To Auction C-Band Spectrum
February 6, 2020 – FCC Chairman Ajit Pai has announced the details of the FCC’s plan to repurpose the C-Band (3.7 to 4.2 GHz) for 5G and wireless broadband services, which will be voted on during the FCC’s next open meeting on February 28, 2020. Today, the C-Band is mostly used by fixed satellite companies to transmit content (space-to-earth) to video and audio broadcasters, cable systems, and other content distributors. Under the proposal, the FCC will clear the lower 280 megahertz of the C-band (3.7-3.98 GHz) and make it available for flexible use, including 5G services, through a public auction. Existing satellite operations will be repacked into the band’s upper 200 megahertz (4.0-4.2 GHz). Satellite operators and other incumbents will receive reimbursements for reasonable relocation costs. Satellite operators will have the opportunity to receive accelerated relocation payments if they are able to clear the lower portion of the C-Band on an accelerated timeline. A 20 megahertz guard band (3.98-4 GHz) will separate the lower and upper portions of the repurposed band. Commencement of the C-Band public auction will be scheduled for December 8, 2020.
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