Telesat taps SpaceX to launch its broadband satellites in orbit

OTTAWA (Reuters) – Canada’s Telesat announced on Monday that it has reached an agreement with SpaceX to launch its low-Earth-orbit (LEO) satellite constellation, named Lightspeed, starting in 2026. The goal is to provide global broadband service from space by late 2027. LEO satellites, which operate 36 times closer to Earth than traditional satellites, offer faster communication and better broadband service, even in remote areas.

Telesat CEO Dan Goldberg expressed his excitement about the agreement, stating, “It is another big step forward on our path to get Lightspeed up there.” Goldberg highlighted the selection of SpaceX, owned by Elon Musk, as the launch partner due to its competitive price, performance, reliability, and schedule tempo.

The contract value was not disclosed but includes 14 launches. Each Falcon 9 rocket will carry up to 18 satellites into orbit, enabling the constellation’s deployment by the end of 2027, three years later than initially planned. Telesat expects to provide global broadband service once the constellation is fully deployed.

Telesat recently awarded Canada’s MDA Ltd the contract to build its 198 satellites, a move that is expected to save the company $2 billion. However, Thales Alenia Space had originally been awarded the contract in 2021. Goldberg explained that supply chain issues, inflation, and the impact of the COVID-19 pandemic led Thales to inform Telesat two years ago that it could no longer meet the agreed price and schedule.

Goldberg also highlighted the significance of the SpaceX contract, stating, “The SpaceX contract for the 14 launches gives us scope to expand the constellation above and beyond the 198 satellites that we’ve committed to with MDA.” This expansion will enable Telesat to target enterprise customers, including mobile operators, governments, aircraft, and shipping companies.

While most of the competition in the LEO satellite market, such as SpaceX’s Starlink constellation and Blue Origin’s Project Kuiper, is focused on the consumer market, Telesat is aiming to serve enterprise customers. Satellite constellations have created a high demand for launch services in the United States, with large bulk orders like Telesat’s SpaceX contract.

Last year, Amazon secured the largest commercial launch deal in history, with 83 missions across multiple launch companies, to deploy its Kuiper network. SpaceX also plans to significantly increase its annual launch rate in 2023, thanks to the growth of its Starlink constellation.

Reporting by Steve Scherer; Additional reporting by Joey Roulette in Washington; Editing by Will Dunham