In a significant boost to the Canadian space industry, billions were invested in Telesat’s (TSAT) Lightspeed project, a cutting-edge low Earth orbit (LEO) broadband constellation.
The federal government will provide a CAD 2.14 billion loan. A substantial increase from the initially planned CAD 1.44 billion. This funding is pivotal for deploying the 198-satellite network aimed at enhancing global broadband connectivity.
Telesat’s Lightspeed project, which aims to deliver high-speed internet worldwide, received this renewed support after switching to Canadian manufacturer MDA, which will produce smaller, cost-effective satellites. This strategic move not only slashes $2 billion off the project’s budget but also underscores Canada’s commitment to strengthening its space sector.
The billions invested in Telesat’s Lightspeed project replace the need for additional financing from Canada’s export credit agency. It will also support the project’s broader financing strategy. The deal includes an option for the government to acquire a 10% stake in Lightspeed for $300 million, valuing the constellation at $3 billion.
This investment is expected to solidify Canada’s position in the rapidly evolving space industry and ensure that Telesat can compete effectively with other global players like SpaceX’s Starlink.
Leave a Reply