Banking on LEO technology to help bring high-speed Internet to all Canadians by 2030
OTTAWA – The government announced today it will invest $1.44 billion into Telesat Lightspeed, Telesat’s advanced low Earth orbit (LEO) satellite constellation.
The investment is to be made “through a $790-million repayable loan and a $650-million preferred share equity investment for which the government would receive a dividend,” according to a Government of Canada press release. “As part of this investment, the government would also receive warrants that can be converted into common shares in Telesat so that Canadians can share in the financial upside from Telesat Lightspeed.”
By 2024, Telesat Lightspeed is expected to “enable broadband Internet and LTE and 5G connectivity in Canada,” the press release says. The technology will connect around 40,000 households in rural and remote Canadian regions, and “will allow for significantly better service offerings in many regions of the country where current speeds struggle to meet the demands of an increasingly digital world.” This will help the government meet its target of connecting all Canadians to high-speed Internet by 2030.
Telesat, as part of the agreement, committed to invest $3.6 billion in capital expenditures in the country, spend over $1.6 billion in Canadian operating expenses over 15 years, maintain up to 700 jobs and support “post-secondary students through 100 co-op jobs and $800,000 in scholarships, with a focus on women in STEM programs,” the release says.
A Telesat press release states that through the company “and its Canadian supply chain, the Telesat Lightspeed program is expected to support over 1,500 Canadian jobs, largely in STEM.”
A Telesat spokesperson confirmed via email to Cartt.ca the $1.44 billion in funding for Telesat Lightspeed is separate from the Government of Canada’s previous $600 million agreement with the company.
