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canada-awards-telesat-$2.3-billion-contract-for-arctic-military-satellite-communications
Canada Awards Telesat $2.3 Billion Contract for Arctic Military Satellite Communications

Canada Awards Telesat $2.3 Billion Contract for Arctic Military Satellite Communications

Last updated: August 5, 2026 7:48 pm
By
Matthew Horwood
3 Min Read
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Canada Awards Telesat $2.3 Billion Contract for Arctic Military Satellite Communications

President and CEO of Telesat Dan Goldberg takes part in a press conference in Ottawa on July 24, 2019. The Canadian Press/Sean Kilpatrick

The Canadian telecommunications firm

Telesat has

been awarded a $2.3 billion contract to provide satellite communications for the Canadian Armed Forces in the Arctic.

Through the contract, the Ottawa-based company will provide “next-generation” military satellite communications capabilities for the Canadian military, according to an Aug. 4 statement from the Defence Investment Agency. The capabilities will support operations including the defence of Canada and the United States through the North American Aerospace Defense Command (NORAD).

Telesat will provide satellite connectivity on the Ka-band from 65 to 90 degrees north latitude, which will start just south of the Arctic Circle and reach up to the North Pole.

The new agreement will allow the company to expand its Lightspeed Low Earth Orbit (LEO) constellation by 69 satellites, bringing the total number from 156 to 225. The satellites will be built at a factory in Montreal.

MDA Space also announced on Aug. 4 that it won a $474 million contract to supply the additional satellites to Telesat.

Telesat CEO Dan Goldberg said in a statement that he was “honoured” to support the Canadian government in strengthening sovereignty over the Arctic. “This contract ensures the Canadian Armed Forces will have access to secure, resilient and sovereign connectivity years earlier than originally planned,” he said.

The federal government said the new deal “has the potential” to create or maintain 2,600 jobs annually across Canada and contribute $335 million annually to Canada’s GDP over seven years.

Prime Minister Mark Carney

said in a

statement that the contract with Telesat would help Canada’s military “communicate more effectively and securely” across Canada’s north.

Back

in September 2024,

the federal government announced a $2.14 billion loan to Telesat to help it build its LEO constellation, while the Quebec government announced a $400 million loan to the company. Former Prime Minister Justin Trudeau said the network would improve internet access for remote communities, including indigenous communities and resource-sector operations.

The Canadian Press contributed to this report.

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