The Ontario government has finalized a $100 million deal with Elon Musk’s Starlink to deliver internet access to rural homes and businesses.
On Nov. 14, the province announced that Starlink had won a competitive bid to become the satellite internet service provider of the Ontario Satellite Internet (ONSAT) program. The service is expected to be available in June 2025, with information on eligibility and registration to be announced in the spring of 2025.
“The ONSAT program will utilize Starlink low-Earth orbit satellite technology to deliver high speed Satellite Internet access to 15,000 eligible, unserved, and underserved homes and businesses,” Infrastructure Minister Kinga Surma said during a press conference in Greater Sudbury, Ontario, on Nov. 14.
The program is part of the Ontario government’s plan to spend $4 billion on high-speed internet projects. Surma noted that by November, Ontario had finalized agreements worth $2.5 billion for over 270 projects, connecting more than 100,000 homes and businesses, with plans to connect an additional 450,000 by the end of next year.
Ontario’s agreement with Starlink follows the federal and Quebec governments’ announcement of a combined $2.54 billion loan to Canadian telecom company Telesat to build and operate its low-Earth orbit satellite network, Lightspeed. The Prime Minister’s Office (PMO) has described the project as “Canada’s largest-ever space program.”
Low-Earth orbit satellites operate 35 times closer to Earth than traditional satellites, allowing for faster data transmission, even in rural, remote, and northern areas, according to the PMO. The $2.54 billion loan to Telesat consists of $2.14 billion from Ottawa and $400 million from Quebec.
Musk, who was tapped by U.S. President-elect Donald Trump on Nov. 12 to lead a proposed new department aimed at improving government efficiency, has said that Starlink could provide similar service at “less than half that amount.”
He made the comments in response to Conservative MP Michael Barrett, who had challenged the government’s $2.54 billion loan to Telesat in a Sept. 14 post on the social media platform X.
In response to Barrett, Innovation Minister François-Philippe Champagne said the loan to Telesat is intended to support the development of a made-in-Canada satellite network, which will create jobs and strengthen the domestic industry.
The PMO also highlighted the job creation aspect in its press release, noting that the federal investment will generate 2,000 jobs across Canada through Telesat and its supply chain, including MDA Space, the prime contractor for satellite development and manufacturing.
“Our government is focused on Canadians, and today’s announcement with Telesat and MDA is our commitment in action,” Prime Minister Justin Trudeau said in a press release announcing the funding to Telesat, noting that the company will invest over $4.4 billion in the Canadian economy over the next 15 years.
