Ottawa awards Telesat $2.3B contract
The Canadian government has awarded a $2.3 billion contract to Ottawa-based Telesat to provide high-speed satellite broadband to the Canadian Armed Forces in the Arctic. This deal will significantly expand Telesat's low-Earth orbit satellite network and aims to enhance military communications while positioning the firm to compete with SpaceX's Starlink.
Why it matters
This contract represents a major investment in Arctic sovereignty and military infrastructure, while also signaling a shift toward increased competition in the global satellite internet market.
OTTAWA — A Canadian telecommunications firm has signed a deal with the federal government worth $2.3 billion to provide high-speed satellite communications to the Canadian Armed Forces in the Arctic. The federal Defence Investment Agency and Telesat LEO announced the deal on Monday. The contract is meant to secure broadband coverage in remote northern locations for a range of Canadian military activities, including Norad. This is the largest contract ever for the Ottawa-based Telesat, which has been in operation for about 60 years. It’s expected to give the company’s network growth plans a major boost. Telesat CEO Dan Goldberg said the contract will allow his firm to increase the size of its planned low-Earth orbit satellite network by about 44 per cent by adding another 69 satellites.
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