SES has informed the FCC that clearing 160MHz of upper C-band spectrum for 5G and 6G use will require approximately $3.6 billion in costs, primarily driven by the need to launch new hybrid satellites and retrofit ground infrastructure. This filing highlights the technical and financial hurdles involved in balancing spectrum repurposing with the continuity of existing video distribution services.
This massive cost estimate highlights the growing friction between 5G territorial expansion and the legacy satellite infrastructure used for linear video distribution. For programmers and MVPDs, the transition poses technical risks like signal degradation and the logistical complexity of retrofitting thousands of headends. If the FCC proceeds with auctioning the full 180MHz, satellite operators warn that the remaining 20MHz would be insufficient for standard transponder operations, potentially forcing a more aggressive shift toward fiber or LEO delivery. Watch for whether the FCC adopts the National Association of Broadcasters' proposal to cap the auction at 100MHz to limit these service disruptions.
The FCC has intensified its efforts to repurpose mid-band spectrum, supported by the restoration of its general auction authority under the One Big Beautiful Bill Act signed in July 2025. Per Communications Daily and Reuters, the agency successfully concluded the re-auction of 200 AWS-3 licenses in June 2026, generating $3.57 billion. FCC Chairman Brendan Carr stated that this success provides momentum for the upper C-band auction, which the commission is mandated to complete by July 2027. Most of the AWS-3 proceeds are earmarked to fund the ‘Rip and Replace’ program to remove Chinese telecom equipment from U.S. networks.
Industry pressure for additional spectrum remains high as wireless carriers look to expand 5G and fixed wireless capacity. New Street Research noted in June 2026 that the AWS-3 auction served as a lead-in for the far more valuable upper C-band licenses expected next year. Meanwhile, SES and Intelsat—whose $3.1 billion merger was finalized following a May 2024 announcement—have focused on consolidating their networks to facilitate this spectrum clearing. Per Fierce Network, the combined entity expected to free up to 100MHz of C-band as a direct result of their network integration, though clearing the additional 60MHz requested by the wireless industry significantly increases the capital requirement for new hybrid satellites.
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