Telesat gets loan for Lightspeed mega-constellation
September 16, 2024
By Chris Forrester
The Canadian government has announced a loan of C$2.14 billion (€1.42bn) to satellite operator Telesat to help the company build its broadband satellite constellation in what Prime Minister Justin Trudeau described as Canada’s largest ever space programme.
Trudeau said the Telesat Lightspeed constellation will enable people in the most remote parts of the country, including in Indigenous communities and mines and forestry companies, to connect with cheaper, more reliable internet.
Telesat has been planning Lightspeed for some years but putting the financing in place had proved to be a challenge. The financing is now complete, says Telesat.
The 198-strong fleet of low Earth orbiting satellites that make up the Lightspeed constellation will help generate some 2,000 jobs in Canada, including 967 in Quebec. Telesat has increased its Canadian workforce by approximately 33 per cent in the last 12 months and expects 2024 capital expenditures for the programme to be in the range of C$1 billion to C$1.4 billion.
The C$2.14 coming from central government is in addition to C$400 million that is being loaned by Quebec province. Canada’s government said it expected Telesat to invest C$4.4 billion into the Canadian economy. The two government entities will receive a total 11.87 per cent of Telesat’s equity in return for their loans.
Telesat president Daniel Goldberg said the development of satellites would improve broadband connectivity, national security and public services in Canada and beyond. “This constellation will be transformative for Canada, for Quebec, but it will be transformative for the whole world,” he said.
The Lightspeed constellation is being built by Canada-based MDA at a new 185,000 sq ft facility outside Montreal. An initial batch of satellites will start to launch in 2026.