Canadian satellite operator Telesat has entered into a massive C$2.3 billion ($1.6 billion) agreement with the Canadian government to enhance its Lightspeed network, providing dedicated Ka-band connectivity to the country’s armed forces.
Key Contract Details
- Duration and Value: The baseline contract spans years and could eventually grow to C$2.7 billion if two optional five-year extensions are activated, bringing the potential total commitment to 15 years.
- Timeline: Service delivery is scheduled to kick off in 2028, coinciding with the broader rollout of global Telesat Lightspeed services.
- Manufacturing Partner: MDA Space will supply 69 additional MDA Aurora-based satellites for roughly C$474 million, boosting the total Lightspeed constellation size to 225 spacecraft.
Arctic Coverage and Global Ambitions
The newly funded satellites are specifically engineered to provide robust coverage spanning 65 to 90 degrees north latitude, ensuring secure and sovereign communications for the Canadian Armed Forces in the strategic Arctic region.
Telesat CEO Dan Goldberg noted that the infrastructure upgrade opens up significant room for future growth. Beyond the Arctic, the low-Earth-orbit network could potentially extend military Ka-band capabilities globally and offer communication links to allied nations such as the United States, Germany, South Korea, and Italy.
To support the expansion, Telesat anticipates utilizing SpaceX Falcon 9 rockets for launches. Buoyed by this defense contract and growing commercial demand, Telesat has raised its long-term sales projections for 2032 to $4.9 billion, backed by an impressive $4 billion backlog for the Lightspeed network.
