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Explainer · Updated 28 Oct 2026

Spectrum as collateral

Why spectrum is often a satellite operator's most valuable asset, why lenders cannot take a direct pledge over most licences, and how deals capture its value through licence-holding companies and sale proceeds.

Randeep Bubbra | Lawyer | Making space financeable

In short: for many satellite operators, the right to use radio spectrum is worth more than the satellites. Lenders want that value behind their loans, but most licences cannot be pledged directly: they are permissions from a government, not property. Deals therefore capture spectrum value indirectly, by owning the company that holds the licence, by controlling the proceeds if it is sold, and by restricting what the borrower can do with it.

Why spectrum carries value

Spectrum suitable for mobile or broadband use is scarce. When it can be repurposed, its value can dwarf the satellite business built on it. Two examples:

  • C-band. US satellite operators were paid billions of dollars in accelerated relocation payments to clear C-band spectrum for 5G after the FCC's 2021 auction.
  • EchoStar. In 2025 EchoStar agreed to sell spectrum licences to AT&T for about US$23bn and to SpaceX for about US$17bn, partly in SpaceX shares. The FCC has approved both sales.
Subscriber guide

The rest of this guide covers how lenders structure licence-holding subsidiaries, the FCC approach to proceeds, ITU filings as value and the checklist for a spectrum-backed deal. It is free with a work email, along with the register downloads and the in-house counsel tools.

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Questions

Can a lender take security over an FCC licence?

Not over the licence itself. The FCC treats a licence as a right granted by the government, not property, so lenders take security over the shares of the company holding it and over the proceeds of any sale of the licence. Any transfer of the licence or of control of the holder needs FCC approval.

How valuable is satellite spectrum?

Very, when it can be sold or repurposed. In 2025 EchoStar agreed to sell spectrum to AT&T for about US$23bn and to SpaceX for about US$17bn, and the FCC has approved both sales.

Are ITU filings collateral?

Not directly. ITU filings are made by national administrations, not operators. Their value reaches lenders through the operator's rights under national law and the business that uses them.

Sources

  1. DatacenterDynamics: FCC approves EchoStar's US$40bn spectrum sales to AT&T and SpaceX
  2. Light Reading: SpaceX snares some EchoStar spectrum for US$17bn
  3. ITU: Radio Regulations

General information on public law and market practice as at 28 Oct 2026, not legal advice on any transaction.