With the space economy projected to be worth more than $1 trillion by 2040, it’s better late than never for Ottawa-based satellite operator Telesat.
What happened: After seemingly negotiating since 2021, the federal government will loan Telesat more than half of the $3.5 billion cost to complete and operate a low Earth orbit (LEO) network to expand internet service into rural and remote areas across the country.
- Companies like SpaceX, OneWeb, and Amazon are leading the shift to LEO satellites, which zip around only a few hundred kilometres above the Earth.
- They promise faster, more reliable, and more accessible internet than traditional geostationary orbit (GEO) satellites, which hover thousands of kilometres higher.
Why it matters: Telesat may have only started building new satellites after its competitors had deployed thousands, but more satellites can bring the internet to places where it’s costly or unavailable. SpaceX’s Starlink, and its roughly 6,000 satellites, have so far filled the gap.
Bottom line: Over the weekend, Space X CEO Elon Musk tweeted that it would cost less than $1 billion to buy Starlink ($140 a month) for Canadians without high-speed internet. If Telesat can get off the ground, it could offer some healthy competition in the space.—SB