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Canada Awards C$2.3 Billion Contract to Expand Telesat Lightspeed for Arctic MILSATCOM

Locked-in Canadian-built satellites plus milestone funding aim to deliver military Ka-band coverage to the High North by 2028.

Overview

  • The Defence Investment Agency awarded Telesat a C$2.3 billion ESCP‑P contract to fund an expansion of the Lightspeed low Earth orbit network from 156 to 225 fully financed satellites.
  • The deal, announced Tuesday, will modify Lightspeed to carry military Ka‑band capacity for coverage between 65° and 90° north and schedules MILSATCOM service to begin in 2028.
  • MDA Space will build the additional satellites in Montreal and launches are planned on SpaceX Falcon 9 vehicles, with government milestone payments starting in the third quarter of 2026.
  • Two five‑year options could extend the service to a 15‑year term and raise the program value if exercised, while a separate procurement will still be negotiated for user terminals, ground control, training and support.
  • Officials say the award secures a sovereign, dual‑use Arctic capability, boosts Canadian space manufacturing and jobs, and sets the stage for later UHF/X‑band MEO elements that would broaden military and allied interoperability.