Canada signs $2.3 billion Telesat Arctic satellite deal

The Canadian government has signed a record 2.3 billion dollar contract with Ottawa-based Telesat to provide secure, high-speed satellite communications for the Canadian Armed Forces across the Arctic. The deal, announced on August 4, 2026, by the Defence Investment Agency, is the largest in Telesat's nearly 60-year history and includes two five-year option periods that could extend the agreement to 15 years and increase its total value to 2.7 billion dollars.

The contract is part of Canada's Enhanced Satellite Communications Project Polar program, aimed at addressing a critical gap in military connectivity in the remote north. It will provide Military Ka-band services for the region between 65 and 90 degrees north latitude, an area stretching from just south of the Arctic Circle to the North Pole. Service is scheduled to begin in early 2028.

To fulfill the contract, Telesat will significantly expand its planned low-Earth orbit satellite constellation, known as Lightspeed. The company will add 69 fully funded satellites, increasing the total planned fleet from 156 to 225 and boosting global network capacity by more than 40 percent. Telesat's Chief Financial Officer, Donald...