Ontario ditches Trudeau satellite deal for Starlink
The move comes after Prime Minister Justin Trudeau provided $2.14 billion in funding to build a Canadian-owned, low-Earth orbit satellite network called Lightspeed, even though Elon Musk has said Starlink could provide internet access at ‘less than half that amount.’
Ontario Premier Doug Ford chose Starlink over taxpayer-funded “Lightspeed” Thursday to deliver high-speed internet access to residents in rural locales after much rigmarole.
The $100 million deal is part of the province’s $4 billion aim to provide high-speed internet access, of which $2.5 billion has been allocated already across 270 projects.
Ontario’s agreement with Starlink follows the federal and Québec governments announcing a joint $2.54 billion loan to build and operate a Canadian-owned, low-Earth orbit satellite network called Lightspeed.
Musk has previously said that his already operating satellite, Starlink, could provide similar service at “less than half that amount.”
According to a government news release, Ford and company have connected more than 100,000 homes and businesses to date, with plans to hook up 450,000 more by the end of next year. Of that, Starlink will provide access to 15,000 “unserved and underserved” homes and businesses.
Starlink will service the Ontario Satellite Internet (ONSAT) program through low-Earth orbit satellite technology next June, operating 35 times closer to Earth than traditional satellites, reported the Epoch Times.
The federal loan to build satellites, under the guise of high-speed internet, does not mandate Telesat to connect households.
In an inquiry to cabinet, Conservative MP Dan Mazier asked, “How many households has Telesat committed to connecting with high-speed internet service specifically as a result of the $2.14 billion?”
“Telesat does not supply internet services directly to households,” it said. “Instead Telesat will sell wholesale capacity to local internet service providers.”
Further details of the Starlink deal will be provided next Spring, including how eligible residents can apply for internet access.
In contrast, it remains unclear what sureties Telesat will provide taxpayers, as its loan agreement is confidential.
“Over a million households in rural Canada and over half of First Nations still don’t have access to high-speed internet,” Mazier told the Commons public accounts committee last year.
“I think it’s quite startling,” he added.
Prime Minister Trudeau previously announced Telesat would build a broadband satellite constellation to connect Canadians to cheaper, more reliable internet.
“That’s what this investment is about,” he told reporters at the time.
The Telesat “Lightspeed” program is already underway, with an initial 198 satellites scheduled to launch in 2026. The Québec firm subcontracted MDA, an aerospace tech company, to build the satellites.
They will “create the most advanced assembly line for satellites in the world,” claimed the prime minister.
However, his cabinet refused to clarify how Telesat secured the loan whereas Starlink won the Ontario contract through a competitive bidding process.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
COMMENTS
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Bernhard Jatzeck commented 2024-11-17 02:30:11 -0500Milton Friedman once said, “If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.”
I remember when PET banned the ownership of personal satellite TV antennas that could receive American signals directly (something about us being overwhelmed by culture from south of the border). Back then, the Crown corporation Telesat Canada had a monopoly on satellite ground stations. I guess the direct-to-home systems would have circumvented that and we all know how PET loved government control.
Shortly after Mulroney was elected, he allowed Canadians to own satellite dishes with that capability. -
Steven Jensen commented 2024-11-15 20:57:15 -0500Starlink costs less than $1000.00 per unit… which would cost $15,000.00… where / who’s pockets gets the rest of the money???
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Bruce Atchison commented 2024-11-15 19:23:52 -0500I’m glad Ford has more sense than that fop Trudeau. Why reinvent the wheel? And we know that private companies do work much cheaper and better than governments can. Let’s hope Lightspeed never gets off the ground.
