Canada’s Telesat to reached a deal with SpaceX to begin launching its low-Earth orbit satellites in 2026

Canada’s Telesat has announced a partnership with SpaceX on Monday to commence launching its low-Earth orbit (LEO) satellites in 2026, with the goal of providing global internet access from space by the end of 2027.

 

LEO satellites, which orbit much closer to Earth than traditional satellites, enable faster transmission of information, improving broadband coverage, even in remote areas. Telesat’s LEO constellation is named Lightspeed.

 

Telesat CEO Dan Goldberg stated, “It is another big step forward on our path to get Lightspeed up there.”

 

The exact value of the deal, covering 14 launches, was not disclosed. Telesat plans to deploy the constellation by the end of 2027, offering a global service. Each Falcon 9 rocket from SpaceX will have the capacity to launch up to 18 satellites into orbit, marking a three-year delay from the original deadline.

 

Following an initial trading gain of about 3.2 percent, Telesat’s stock declined by 5.3 percent to Canadian $21.99 ($16.20).

 

Last month, Telesat revealed that by contracting Canada’s MDA Ltd to build 198 satellites, it would save $2 billion. Thales Alenia Space was awarded the contract in 2021. According to Goldberg, Thales informed Telesat approximately two years ago that it could no longer adhere to the agreed-upon price and timeline due to various factors, including the impact of COVID, supply chain issues, and inflation.

 

Telesat’s 14 launches will be executed by SpaceX, providing flexibility to expand the constellation beyond the 198 satellites committed with MDA, Goldberg explained.

 

Telesat is entering the competitive realm of LEO networks with the aim of serving corporate customers like mobile operators, governments, aircraft, and shipping companies. Most LEO competition, including Jeff Bezos’ Blue Origin and its Project Kuiper, as well as SpaceX’s Starlink network, is primarily focused on the consumer market.

 

Significant bulk launch contracts like Telesat’s agreement with SpaceX have significantly impacted the U.S. launch supply in recent years, driven by satellite constellations. Amazon secured the largest commercial launch contract in history in 2022, involving 83 missions across various launch providers for its Kuiper network. SpaceX also aims to roughly double its current annual launch rate by 2023 with its expanding Starlink constellation.