Telesat Lightspeed has received a $2.14 billion loan from the federal government to expand internet and 5G network access using space-based technology.
Lightspeed is being billed as Canada’s largest ever space program, supporting 2,000 jobs across the country through Telesat and its supply chain, including satellite contractor MDA Space, which is best known for developing the Canadarm technology, the series of robotic arms used by the Canadian Space Agency.
Low-Earth-orbit (LEO) satellite networks operate 35 times closer to the Earth than traditional telecommunications satellites, taking less time to send and receive information, leading to faster internet service, even in rural and remote areas, according to a release from the Prime Minister’s Office.
The program is already underway, with the first of an initial 198 low-Earth-orbit satellites scheduled to launch in 2026, accelerating the federal government’s pledge to connect all Canadians to high-speed internet by 2030. The federal commitment confirmed on Friday, builds on a previous funding arrangement that included a $790 million loan and $650 million in preferred equity.
“Today, we are cementing Canada’s position as a global leader in the new space economy. This investment will create high-skilled jobs, support innovation, and secure Canada’s telecommunications systems,” said the Hon. François-Philippe Champagne, Minister of Innovation, Science and Industry, in the announcement. “As the largest space program ever conceived and built in Canada, this agreement with Telesat Lightspeed will have a significant impact on the growing network of Canadian suppliers and talent, offering critical support to the sector as it continues to flourish.”
The PMO says the network will also bolster federal satellite communications technology and support the North Atlantic Treaty Organization (NATO) and North American Aerospace Defense Command (NORAD).
Construction is underway on a 185,000 sq. ft. expansion at MDA’s satellite manufacturing facility in Sainte-Anne-de-Bellevue, Que., where it plans to add 600 new high-skill technology jobs. Telesat has already increased its Canadian workforce by 33% over the past year.
“The global satellite market is at an inflection point as satellite operators and customers shift to digital solutions like MDA AURORA that offer greater performance and flexibility at a significantly lower cost,” said Mike Greenley, Chief Executive Officer, MDA Space. “Our strategic investments in expanding our satellite production facility and team are ideally timed to expand the export and growth opportunities for the Canadian space industry in Quebec and across the country.”
Federal financing for the project is being provided as a repayable loan, with the federal government to receive interest and stock warrants.
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