Satellite operator Telesat has announced that it has agreed deals with the government of Canada and the government of Quebec that will deliver approx. US$1.9 billion (CAD$2.54 billion) in funding for the development of its Telesat Lightspeed Low Earth Orbit (LEO) satellite constellation.
The Canadian government had confirmed earlier this year that it was agreeable to providing funding for the project, setting the process in motion.
Telesat says that it now has all financing sources in place to fund the new network, including the satellites, launch vehicles to deploy them, an integrated terrestrial network of landing stations and points of presence throughout the world, and the business and operational support systems for the network.
The government funding is in the form of loans subject to interest, with CAD$2.14 billion coming from Canada and CAD$400 million from Quebec. The government of Canada will receive warrants for 10% of the common shares of the Telesat LEO subsidiary based upon an equity valuation of US$3 billion, while Quebec will get warrants for 1.87%.
“We are pleased to conclude these funding arrangements with the governments of Canada and Quebec as we make strong progress on the build-out of the revolutionary Telesat Lightspeed constellation, the largest space programme in Canada’s history,” said Dan Goldberg, President and CEO of Telesat.
“Telesat Lightspeed will help bridge the digital divide in Canada and throughout the world, create and sustain thousands of high-quality jobs in Canada, deliver billions of dollars of investment in the Canadian economy, spur domestic innovation and exports, and ensure that Canada and Quebec are at the forefront of the rapidly growing New Space Economy.”
The company says that it plans to launch the first Telesat Lightspeed satellites in mid-2026.
