The C-Band Alliance, comprising incumbent satellite users of that midband spectrum, is telling the FCC that the 280 MHz of satellite spectrum the FCC wants to auction for next-gen terrestrial wireless broadband (5G) is worth up to $77 billion. It also said the cost of clearing 300 MHz (the 280 MHz, plus 20 MHz for a guard band) would be about $3.3 billion. 

Related: CBA Wants FCC to Show It the Money 

That came in filings to the FCC meant to demonstrate the value of the spectrum its members have been "operating" for four decades. 

Networks use the C-band to deliver programming feeds via satellite to cable systems and TV and radio stations. 

CBA argues the FCC needs to compensate satellite users for that spectrum, most recently saying that the FCC should require bidders on the cleared spectrum to agree to pay satellite users for exiting early.   

"[I]f the U.S. government determines it to be in the public interest to push out incumbent users who for decades have built their businesses around this spectrum, then fairness and the law dictate these important rights-holders should receive fair value for their efforts in expediting the clearing of this spectrum and making it available far more quickly than would otherwise be possible," CBA told the FCC. 

The C-Band Alliance, representing foreign companies providing those satellite programming services, first wanted the spectrum to be repurposed in marketplace negotiations with wireless companies. When that looked like it might not happen, they offered to provide spectrum for an interoperable 5G network as part of that plan. When that didn’t fly and FCC chair Ajit Pai signaled there would be an auction, they suggested that would be an illegal taking of their spectrum and threatened to sue. 

Related: Senate Commerce Approves C-Band Auction Bill

Now, with the auction all but a done deal, the alliance is saying the FCC should make paying them for the spectrum above and beyond moving expenses a quid pro quo for participating in any auction.

WASHINGTON — The C-Band Alliance (CBA) told the Federal Communications Commission this week that it can't auction part of their spectrum to wireless carriers without the satellite licensee's permission, and to do so would "run headlong into statutory and constitutional limits on the FCC's authority." 

That came in a filing as the FCC decides how to free up C-band spectrum for 5G, spectrum currently used by broadcasters and cable operators for program delivery. 

CBA wants the FCC to authorize a private auction, arguing an FCC auction would take too long as the country tries to win the race to 5G. 

It says that its members, through their FCC licenses, have an enforceable right to transmit free of the kind of harmful interference terrestrial mobile (wireless broadband) operators might present. But CBA says they can voluntarily waive or negotiate away those rights as part of a private auction overseen by the FCC. 

As to the rights of earth-station operators like broadcasters and cable systems — which receive network programming via satellite — to participate in a government incentive auction, CBA says they don't have any. "The FCC lacks power to compensate receive-only earth stations through an auction or other means because these stations simply have no licensed rights to relinquish in the scenario of a C-band reorganization," the alliance said. 

The FCC sought input on what authority others thought it had to compensate C-band stakeholders. Meanwhile various proposals have been offered up to clear spectrum, including compensating earth station operators in an auction, something broadcasters and cable operators are fine with for obvious reasons. 

FCC chairman Ajit Pai has also acknowledged the repurposing is, well, complicated. But he did tell Congress recently that he hopes to have something ready by the fall.

Separately, legislation has been drafted by House Democrats that would require an FCC auction, plus a hefty contribution to the Treasury ($10 billion) to help close the rural digital divide.   

Cable operators and competitive carriers also have a proposal that would include an FCC auction, as well as possible payouts to cable and broadcasters as well as satellite companies.   

The C-band is the kind of midband spectrum — the sweet spot for 5G — that the FCC is under pressure to start clearing in greater abundance. President Donald Trump has directed his administration to come up with a new national spectrum policy plan with the goal of winning the race to 5G.  

CBA has dubbed its private auction FUEL (Flexible Use and Efficient Licensing) and says it would be a sealed-bid auction for "packages" of spectrum, private but overseen by the FCC, which could put conditions on the licenses if it chose. (The FCC has its own FAST (Facilitate America’s Superiority in 5G Technology) plan for getting spectrum into the hands of wireless broadband companies). 

The C-Band Alliance (CBA) has given the FCC its plan for a private auction of 200 MHz of C-band satellite spectrum to be freed up for terrestrial wireless use. Incumbent users would be repacked in the remaining 300 MHz of the 500 Mhz of available spectrum in the band.

Currently that satellite spectrum is used by broadcasters and cable operators to receive and deliver programming, including broadcast and cable networks from distributors to TV and radio stations and cable systems.

Related: Studios Caution FCC To Protect C-Band Incumbents

CBA has dubbed the auction FUEL (Flexible Use and Efficient Licensing) and says it would be a sealed-bid auction for "packages" of spectrum. (The FCC has its own FAST (Facilitate America’s Superiority in 5G Technology) plan for getting spectrum into the hands of wireless broadband companies).

The CBA auction was designed by Auctionomics., which has worked with the FCC on its spectrum auctions.

The FCC has not decided whether to use its own auction or allow for such a private auction, but FCC chair Ajit Pai is looking to get the spectrum freed up for 5G ASAP, so if a private market transaction can do that, it likely has a leg up.

CBA was certainly pitching the process as 'Fast," saying that winning bidders could be determined in 2-4 weeks after the start of the auction and would put the spectrum to use "at the earliest possible date." 

The Alliance said after auction closes, winners can begin building out 5G within 18 months of a final FCC order.

Related: FCC Seeks More Input on Compensating C-Band Incumbents

CBA comprises the four major (international) satellite companies providing satellite service in the C-band--Intelsat, SES, Eutelsat and Telesat. 

The FCC voted unanimously in July 2018 to find ways to open up the C-band spectrum (3.7-4.2 Ghz) -- either all of the proposed 500 Mhz or some portion of it -- for terrestrial wireless use, but has not yet decided just how to do it.

The FCC said its goal is to balance the need for speed (and efficiency) in freeing up the spectrum with the need to accommodate incumbent operations.

Those incumbents want the FCC to make sure that accommodation is top of mind, given the impact of interference with their primary means of getting programming from distributors. 

Chairman Ajit Pai told Senate Wednesday that the FCC was currently vetting that "complicated" auction proposal.