Intelsat shares fall ahead of FCC spectrum shift funding proposal

WASHINGTON: Intelsat SA shares fell 6% on Wednesday on a report the company may file for Chapter 11 bankruptcy protection if U.S. regulators do not boost compensation for shifting to new spectrum, a move that could potentially delay freeing up spectrum for next generation 5G wireless use.

On Thursday, Federal Communications Commission Chairman Ajit Pai is set to announce how much money he will propose satellite companies receive for giving up existing spectrum licenses that would be assigned to 5G use as part of a spectrum auction.

Bloomberg reported on Wednesday that Intelsat is considering a possible Chapter 11 bankruptcy filing if the FCC does not boost its compensation for moving within the spectrum band.