Elon Musk has suggested that SpaceX’s Starlink network could provide high-speed internet to every Canadian household without adequate broadband access for less than half the cost of the Canadian government’s $2.14 billion loan to Telesat, a Quebec-based satellite operator.
The government loan to Telesat, along with an additional $400 million loan from Quebec, will support the development of the Telesat Lightspeed low Earth orbit (LEO) broadband satellite constellation. This initiative is being hailed as the largest space program in Canada’s history by Prime Minister Justin Trudeau.
The results will take a while to materialize as the Telesat Lightspeed program is only expected to begin launching satellites in 2026, with the company aiming to launch a total of 198 satellites. The constellation aims to improve internet access in remote regions, including Indigenous communities, and provide more reliable connectivity for industries like mining and forestry.
However, Musk claims that Starlink can deliver the same service at a fraction of the cost.
Less than half that amount https://t.co/tCS9ktUNuO
— Elon Musk (@elonmusk) September 14, 2024
Musk’s comments highlight the potential cost efficiency of Starlink compared to the government’s investment in Telesat. With over 7,000 satellites already in orbit, Starlink offers an existing solution for internet connectivity in remote regions, which could be scaled further to reach more Canadians. For many remote Canadian communities, particularly in northern areas, Starlink has already proven to be a reliable and affordable option.
Critics of the government’s investment argue that the loan to Telesat is duplicating efforts that Starlink has already advanced, questioning whether Canadian taxpayers will see the best value for their money. Telesat Lightspeed, while promising in terms of job creation and technological development, is still years away from delivering service. In contrast, Starlink is available today and could theoretically expand its coverage to the remaining underserved Canadian households in a relatively short time.
Supporters of the government’s investment in Telesat, however, point to the economic benefits that will come from investing in Canadian companies and infrastructure. The Telesat Lightspeed program is expected to create over 2,000 jobs in Canada, including nearly 1,000 in Quebec alone.
