Update: C-Band Lump Sum Election Deadline is Now September 14, 2020

Update: The FCC has now extended the lump sum election deadline to September 14, 2020.

Our original memo:

The FCC has released the final Cost Catalog for reimbursable relocation expenses of C-Band (3700-4200 MHz) licensees (available here), and has set August 31, 2020 as the deadline for current C-Band earth station licensees to choose if they want to receive lump sum relocation payments instead of reimbursement expenses. Two organizations have requested that the August 31 deadline be extended. If your station or business is a current earth station licensee or registrant and you have met the interference protection criteria and appear on this eligibility list, you are entitled to be compensated for all reasonable relocation costs, or otherwise to receive a lump sum payment. Current C-Band licensees are being required to relocate to a different swath of radio spectrum because the FCC is transitioning current C-Band spectrum for use by 5G mobile services.

Current earth station operators may elect to receive payments for either:

(1) individualized, fully documented expenses for each antenna’s transition to the upper band spectrum; OR

(2) a lump sum based on the average, estimated cost of earth station relocation, which would give them the option to shift to other distribution means such as fiber.

Licensees must elect the same method for all their earth stations.

Once made, the lump sum election cannot be changed. Earth station operators that do not elect to receive a lump sum payment can seek reimbursement at a later time. Covered costs for moving to the 4000-4200 MHz band include retuning, repointing and filtering plus any associated FCC application fees, as well as “soft costs” for engineering, consulting and attorney fees. The FCC will apply a rebuttable presumption that soft costs should not exceed 2% of hard costs.

The Cost Catalog includes detailed estimates of individual component costs for receive-only antennas, bi-directional antennas, temporary fixed antennas, and gateway and large aperture point to point systems. The Cost Catalog also sets forth the following base lump sum payments (per registered antenna) that incumbent earth stations will receive if they elect to receive lump sum payments. These amounts are based on average estimated costs of relocation. Licensees electing to receive a lump sum payment can use the funds to either relocate to the 4000-4200 MHz band or acquire different technology to serve their program delivery needs.

Examples of Lump Sum Payments:

Receive-Only Earth Station (ES) Single-Feed Antenna………………$8,948
Receive-Only ES Multi-Feed Antenna…………………………….… $16,997
Small Multi-Beam (2-4 beams) ES Antenna…………………………$42,062
Large Multi-Beam (5+ beams) ES Antenna……………………………..$51,840
Gateway ES Antenna (bi-directional)……………………………………$20,854
Temporary Fixed ES Antenna (e.g. mobile news trucks)………………….$3,060
MVPD Per Site Technology Upgrade Installation Lump Sum……………$47,598

If you wish to elect to receive the lump sum payment, you will need to submit information via the FCC’s ECFS system in International Bureau Docket No. 20-205 by August 31, 2020.

If you need assistance making the lump sum payment election prior to August 31, 2020, or have questions about any aspect of the C-Band transition, please contact any attorney in our office.

Categories: Media, Satellite