Intelsat Falls on Reports FCC May Pay $5 Billion to C-Band Group

Intelsat fell 8% in pre-market trading after Communications Daily reported late Tuesday that the FCC chairman’s office is telling the C-Band Alliance that it favors a set incentive payment structure with the set payment being floated at $5 billion, New Street analyst Blair Levin wrote in a note.

• New Street’s sources have confirmed accuracy of FCC’s preferred structure and the approximate amount
• Analyst said risk of litigation has increased as both Senate proposal and Pai idea are “significantly” below what CBA has implied it needs to prevent its members from going the litigation route
• NOTE: Jan. 28, Intelsat Bonds Drop ...