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Canada to invest in Telesat Satellite company for high-speed Internet

The Government of Canada invests over 85 million Canadian dollars or $64.7 million to the satellite company Telesat.

Telesat ( Tesat Canada) is a Canadian satellite communications company headquartered in Ottawa. It owns a fleet of satellites, with others under construction, and operates additional satellites for other entities. Founded on May 2, 1969, Telesat is now the 4th largest fixed satellite services provider in the world.

The said financing was dedicated to providing high-speed internet connectivity with an affordable budget across rural and remote areas in Canada through Telesat’s Low-Earth-Orbit (LEO) Satellite Constellation.
LEO is a prototype communications satellite operated by Telesat Canada. It provides seamless, fast and reliable broadband, available worldwide.

“Telesat LEO is the most ambitious global broadband infrastructure program ever conceived and will revolutionize how Canadians, and everyone else in the world for that matter, experience and leverage the Internet,” said Telesat’s President and CEO, Dan Goldberg.

“Today’s announcement will help achieve Canada’s goal of universal connectivity, ensuring that Canadians, regardless of where they work or live, have affordable, high quality, and high-speed Internet. Telesat LEO has garnered substantial interest from commercial enterprises and governments around the world. That interest, together with the funding received from the Strategic Innovation Fund and Canada’s plan to secure Telesat LEO capacity on a long-term basis for Canadians, underpin Telesat’s plan to fully bridge the digital divide with this advanced Telesat LEO Constellation,” Goldberg added.

The Canadian Government also agreed on spending over 600 million Canadian dollars ($456.6 million) to support Telesat’s mission of deploying the LEO Constellation across Canada and the rest of the world.

The partnership between the Canadian Government and Telesat is expected to generate a revenue of over 1.2 billion Canadian dollars ($913 million) in 10 years.

Honorable Navdeep Bains, Minister of Innovation, Science and Economic Development says, “Access to high-speed Internet is not a luxury; it is essential, and all Canadians should have access to it regardless of where they live. Rural and remote areas need this service to do business, upgrade their education and build stronger communities. Today’s announcements will provide us with a glimpse of what future connectivity of rural and remote communities will look like. It will also ensure that innovative Canadian companies, like Telesat and its partners, remain world leaders, creating highly skilled jobs in Canada.”

According to Goldberg, the support coming from the Canadian Government will help them make the multibillion-dollar constellation a reality. “We need the support of the government. Even with our strong history and our strong financial position, without government support on a project of this nature it would be very difficult to move forward,” Goldberg stated.

Honorable Bernadette Jordan, Minister of Rural Economic Development also commented saying, “Affordable high-speed Internet and mobile wireless coverage is critical to the continued vibrancy and success of rural Canada. Our government is leveraging various innovative and disruptive technologies to improve rural connectivity and to ensure that Canadians in all areas of the country have access to the latest technologies. LEO satellite technology will substantially increase capacity and offer better speed and signal strength for Canadians from Coast to Coast to Coast.”

The partnership outlines the objectives of the Canadian Government to address the problems of expensive yet slow internet connectivity around the world.