SES and Eutelsat Set for $6.1 Billion from US C-Band Clearing

SES and Eutelsat are set to be the main beneficiaries of FCC plans to free up 160MHz of upper C-band spectrum for next-generation terrestrial wireless services in the US - receiving a combined $6.1 billion in incentive payments.

SES’ gross incentive payments will be around $5.6 billion, while Eutelsat is set to receive approximately $504 million. Canada’s Telesat is also expected to receive a smaller share of the FCC’s wider $6.3 billion incentive payment pool.

The spectrum, in the 3.98–4.14GHz range, is currently used by satellite operators and will be repurposed for flexible-use terrestrial wireless services. The FCC plans to auction the band by July 2027, creating additional capacity for mobile operators as demand for spectrum continues to rise.

To qualify for the payments, satellite operators must clear the relevant spectrum in stages, with key deadlines in December 2030 and June 2031. They will also be reimbursed for eligible transition costs, which the FCC estimates could total between $4 billion and $5 billion.

The decision follows the earlier lower C-band auction in 2020, which raised more than $80 billion from US mobile operators including Verizon, AT&T and T-Mobile. The new upper C-band process is expected to create another major spectrum opportunity for wireless carriers, while giving satellite incumbents clearer financial visibility for the transition.

For SES, the payment is particularly significant following its acquisition of Intelsat, although a portion of proceeds may be affected by tax liabilities and obligations to Intelsat bondholders. Eutelsat, meanwhile, described the FCC framework as an important milestone that balances new wireless capacity with continuity of satellite operations.