After first applying to a request for information back in 2008, Canadian telecommunications firm Telesat has finally signed a $2.3 billion deal with the federal government to provide high-speed satellite communications to the Canadian Armed Forces in the Arctic: the largest contract in its history. The broadband coverage will support a range of military activities in remote northern locations, including Norad.
The announcement comes after a strategic partnership was signed with the federal government, Telesat, and Canadian satellite manufacturer MDA Space in December.
Telesat CEO Dan Goldberg said the contract will enable the firm to increase the size of its planned low-Earth orbit satellite network with the addition of another 69 satellites. “We’re massively expanding the size of the constellation, which just makes it more competitive, higher performing, more resilient—just a much more powerful network,” he said, which will enable the firm to compete with the likes of Starlink.
Telesat currently has one satellite prototype in orbit undergoing testing, but the plan is to launch its new low-Earth orbit network satellites next year, one year before the federal government contract is set to begin.
The deal comes with two five-year option periods that could see the contract value grow to $2.7 billion over 15 years. There are currently few options for satellite communications in the Arctic, which can be used to support the government’s network of fighter jets, drones, ships, icebreakers, and forward-operating bases in remote locations.
