According to a new posting by journalist Chris Forrester at Advanced Television, Eutelsat has held a series of ‘road show’ presentations to U.S.-based analysts and an investment bank report says that, while no new financial information emerged, Eutelsat’s management stated they expect the Federal Communications Commission (FCC) to make a “favorable” decision regarding the reallocation of some C-band frequencies over the U.S.
Eutelsat itself would only be a modest beneficiary of any such decision as the company only supplies around 5 percent of C-band spectrum over the U.S. The two main beneficiaries are Intelsat and SES which, between them, provide around 90 percent of C-band spectrum.
The report, from Exane/BNPP, said that Eutelsat’s management remain prudent on the net economic benefits that could flow to satellite operators. “The level of FCC oversight, tax, leakage to cable operators and the telco appetite for C-band spectrum appear as the main drivers of net benefit,” stated the bank’s report.
Additionally said by the bank is that they remain ‘Outperform’ on Eutelsat’s share prospects. “The expected return to top-line growth in H219 and FY20, tax savings, and C-band are all attractive catalysts in the near term in our view.”