Canadian satellite firm Telesat has completed CA$2.54 billion (US$1.87bn) in funding agreements for its planned Lightspeed satellite constellation.
The company has announced the completion of funding agreements with the Government of Canada and the Government of Quebec for the Low Earth Orbit (LEO) broadband constellation.
Telesat now has all financing sources in place to fund the Lightspeed network, including the satellites, launch vehicles, landing stations, and points of presence.
The company plans to launch the first Telesat Lightspeed satellites in mid-2026.
“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 program 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 Government of Canada loan is for CA$2.14 billion (US$1.58bn) with a 15-year maturity. Interest is payable in-kind during the Telesat Lightspeed construction period, followed by a 10-year sculpted amortization. The Government of Quebec loan is for CA$400 million (US$294m) and has terms that largely mirror the Government of Canada loan.
“Our government is focused on Canadians and today’s announcement with Telesat and MDA is our commitment in action. Designed, manufactured, and operated in Canada – the Telesat Lightspeed satellite network will be the largest in Canadian history – creating thousands of jobs, growing our economy, and getting high-speed internet to Canadians. We’re putting Canada at the forefront of opportunity, with a fair chance for everyone to succeed," said Justin Trudeau, Prime Minister of Canada.
First announced in 2018, Thales Alenia Space was chosen to be the prime manufacturer for the Lightspeed Constellation back in February 2021.
However, supply chain issues mean the fleet was pushed back from its original 2023 launch date and dropped the number of satellites from 298 to 198, having already previously pushed back the original launch date of 2020 after delays in choosing a contractor. The company then switched suppliers to MDA to save costs.
Satellite launches are scheduled to commence in mid-2026 and polar and global services are scheduled to begin in late 2027. Each satellite weighs 700 kilos, and Telesat will offer up to 7.5 Gbps for a single terminal, with up to 20 Gbps for a single hub location such as a port.
DCD took a deeper look at Telesat's LEO ambitions in our last Edge supplement. Read it for free today.
