The Canadian government has announced a major investment of $1.44 billion in Telesat, one of the world’s largest and most innovative satellite operators based in Ottawa, Canada. This funding is aimed at supporting the development of Telesat’s ambitious Lightspeed program, which seeks to revolutionize global broadband connectivity through a constellation of advanced Low Earth Orbit (LEO) satellites.
The investment, announced by the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, and the Minister of Innovation, Science and Industry, François-Philippe Champagne, consists of a $790 million repayable loan and a $650 million preferred equity investment in Telesat. The government will also receive warrants that can be converted into common shares in Telesat, allowing Canadians to share in the company’s successs.
Telesat Lightspeed is set to position Canada as a global leader in the highly competitive satellite services market and the fast-growing new space economy. The constellation will enable high-speed broadband Internet and advanced cellular connectivity across Canada starting in 2024, ultimately connecting approximately 40,000 households in rural and remote regions, including many Indigenous communities in the north and near north that currently lack adequate connectivity.
The government’s investment is expected to bring significant benefits to Canada. Telesat has committed to investing $3.6 billion in capital expenditures, spending over $1.6 billion in Canadian operating expenses over the next 15 years, supporting up to 700 jobs, and creating opportunities for post-secondary students through co-op positions and scholarships with a focus on women in STEM programs.
With this investment and other financing sources already secured, including $400 million from the Government of Quebec, Telesat now has arrangements for approximately $4 billion in funding for the Lightspeed program. The company expects to secure the remaining financial commitments required to fully finance the project in the near term.
Telesat’s Lightspeed is the largest space program ever conceived in Canada and will be among the most innovative and advanced broadband satellite networks in the world. By investing in this transformative project, the Canadian government is taking a significant step towards its goal of connecting all Canadians to high-speed Internet by 2030, bridging the digital divide, and unlocking economic and social opportunities in the country’s most rural and remote communities.
