NAB Concerned About SES-Intelsat Spectrum Stranglehold

WASHINGTON, Oct. 17, 2024 - A major association of television and radio broadcasters is concerned about a proposed merger between two large satellite service providers.

The National Association of Broadcasters, based in Washington D.C., stated in comments filed with the Federal Communications Commission on Tuesday that the proposed $3.1 billion merger could impact the quality and cost of C-band satellite services.

The association noted in its comments that the proposed merger would result in a single entity controlling more than 96 percent of the C-band spectrum in the United States, an issue which it said could impact the availability, reliability and price of C-band satellite services.

“While we have no view on how the parties might behave post-merger, we urge the Commission to consider the implications of one entity controlling virtually all C-band spectrum,” said NAB’s Chief Legal Officer and Executive Vice President Rick Kaplan.

NAB noted that the C-band is a critical service used to deliver programming to more than 1,000 broadcast stations affiliated with national networks, as well as for radio programming listened to by tens of millions of Americans.

In response to NAB’s comments, SES and Intelsat, headquartered in Luxembourg and Washington D.C. respectively, submitted consolidated comments to the FCC that noted the public interest benefits of the transaction.

The companies asserted that the C-band is not the only method of content distribution, and that the proposed merger would allow them to better compete with alternative methods. SES cited internet-based streaming as an alternative that has rapidly proliferated.

SES also noted that the proposed transaction would allow the company to remain competitive and provide quality service to consumers, despite pressures exerted by the rise of broadcast alternatives.

According to the company, the transaction would facilitate ongoing investments that would maintain its ability to provide high-quality services to consumers.

The Federal Communications Commission has suspended action on the SES-Intelsat transaction while it is under review by the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Service Sector.