Unnecessary C-Band Reimbursements Not Considered Big Risk by FCC
The FCC is seemingly confident the C-band band transition plan cost estimates due Friday won't be inflated. Eutelsat warned about possible abuse of relocation funding (see 2005150028) and Director-Regulatory Affairs and Spectrum Wladimir Bocquet told us some cost estimate ranges in the FCC's draft cost catalog were considerably high, particularly for launches and replacement satellites. Cable interests are asking for more time to review the satellite transition plans.
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The FCC has done "a yeoman's work" with its preliminary C-band cost catalog, similar to what it did with its broadcast incentive auction cost catalog, Commissioner Mike O'Rielly said after June's agency meeting Tuesday. He said the FCC will be "mindful" of any attempts to abuse the process. He said he took Eutelsat arguments "with a grain of salt" but was open to hearing of specific instances or data about reimbursement abuses.
"We want to be wise fiscal stewards," Chairman Ajit Pai said, saying the agency's focus for development of the cost catalog was in making sure costs for which reimbursements are sought are reasonable. Commissioners Brendan Carr, Jessica Rosenworcel and Geoffrey Starks didn't comment. O'Rielly and Pai answered our queries during news briefings.
The lack of limits on unnecessary spare satellites or on new satellites able to enter other markets than the U.S. or operate in other bands like Ku or Ka is "disturbing," Bocquet told us. There also needs to be a restriction on the useful lifetime a replacement C-band satellite that covers the continental U.S., preventing it from being moved to cover some other market, he said. Bocquet said Eutelsat expects some other operators to seek compensation for expenses beyond the scope of the C-band moves.
End users of the C band are far more worried about not being made whole than satellite operators' possible gold plating, said a lawyer involved in the proceeding. He said the FCC, with its experience in the incentive auction and others, has a pretty well-developed system of ensuring only comparable facilities are paid for.
Bocquet repeated company arguments about what should be eligible costs, in a meeting with FCC Wireless Bureau and Office of General Counsel staff, and said its waiver petition isn't trying to delay the transition process. It said more time to get commission guidance would ensure the accelerated relocation process will ultimately move more quickly and efficiently, per a docket 18-122 ex parte posting Tuesday. It asked for a one-week extension of the switchover plan deadline, to June 19.
The FCC should reimburse only equipment needed for the C-band changeover, but not allowing purchase of hybrid satellites would go against commission policy and precedent, Maxar said in a partially redacted filing. It said there's no reason to bar incumbent C-band satellite operators from purchasing equipment with additional functionality at their own proportionate expense.
The switchover plans should be made available on the FCC website on an expedited basis, posted Friday night or Saturday morning, so there's enough opportunity to review them and provide meaningful feedback, NCTA and ACA Connects asked Wednesday. They also asked for a six-day extension of the comment deadline for preliminary lump sum categories and payment amounts to June 22, so the plans can be taken into account. The FCC didn't comment Wednesday on the C-band deadline changes requests. ACA, recapping a meeting with Wireless Bureau officials, said it needed access to those satellite operator transition plans to know what will be needed for earth station transitions and whether the lump sum proposals are appropriate or need adjustment.