Starlink’s internet satellites are orbiting controversy in the Great White North.
Driving the news: Bell and its subsidiary Northwestel are pressing Canada’s telecoms regulator to drop Starlink from a new subsidy scheme for internet providers in Northern Canada, per documents viewed by the Financial Times.
- This year, the CRTC introduced a program to reduce Far North internet costs by giving subsidies to service providers in exchange for them lowering consumer prices.
- Bell feels that Starlink shouldn’t be eligible for the program as it charges the same fee for users anywhere in the country, arguing it doesn’t need the additional support.
Big picture: There’s been broader pushback against Starlink getting government subsidies due to its owner Elon Musk’s deep ties to the Trump administration. The Ontario government dropped a Starlink deal in March, and other provinces could follow suit.
Why it matters: Starlink is currently the top option for satellite internet service, which has become critical to connecting northern and rural communities to the internet and providing vital emergency comms. Some experts feel this reliance represents a threat to sovereignty.
- “We don’t outsource this service to China’s Huawei for national security reasons, this is now of similar significance,” one public advocacy expert told the Financial Times.
Bottom line: Starlink had over 400,000 Canadian customers last year, and, per an international research group, the majority of homes it serviced were in remote areas with poor broadband access. If Canada wants to shed it as a provider, it’ll need a viable homegrown replacement.—QH