Ontario Cancels Starlink Deal—What’s Next for Rural Internet?

After initially cancelling, and then un-cancelling their $100 million contract with SpaceX’s Starlink, the Ontario government says it is not changing its mind again, and the deal is officially dead. This decision leaves thousands of remote Ontario households and businesses uncertain about their internet future as the province now has no clear plan to bring high-speed connectivity to underserved areas.

The now-defunct deal was supposed to provide high-speed internet access to 15,000 homes and businesses in Northern Ontario, starting as soon as June 2025. With Starlink out of the picture just months before the program was set to begin, Premier Doug Ford’s government has yet to outline a clear alternative, sparking concerns that many rural communities will remain stuck with slow, unreliable service for the foreseeable future.

When announcing the cancellation, Ford justified the decision as a stand against what he described as an “economic attack” from the U.S., referring to the Trump administration’s new tariffs on Canadian goods. “We will not fund companies that enable or encourage policies that hurt Ontario workers and businesses,” Ford said in a statement.

But, the province now faces a major dilemma – replacing a satellite network that could deliver fast, low-latency internet to remote areas, with something equally effective, and at low cost.

Ontario had considered other providers before awarding the contract to Starlink in November 2024. One of the finalists, Xplore, offers satellite and fixed wireless broadband, but its satellite service relies on a single geostationary satellite, Jupiter 3, operated by the U.S.-based Hughes Network Systems. The province has yet to confirm whether Xplore is being reconsidered, but questions about its American ownership could complicate the decision.

ALSO READ: B.C. Ferries Weighs Canadian Satellite Alternatives to Starlink Amid U.S. Tariffs

Another potential option, the Canadian-based Telesat, is working on its Lightspeed satellite network, which aims to provide global broadband coverage. However, the first Lightspeed satellites aren’t expected to launch until mid-2026, meaning they won’t be available in time to replace Starlink’s planned rollout. The company will also first be focused on enterprise and government customers, rather than individual households.

For many rural Ontarians, the loss of the Starlink contract directly impacts their ability to access essential services. In communities where reliable internet is scarce, Starlink was viewed as a game-changer, enabling everything from telemedicine and online education to business operations.

Some argue that the long-term solution lies in expanding fiber-optic networks rather than relying on satellite internet. But deploying fiber in remote areas takes years to complete, and is extremely expensive, both in terms of installation, and also servicing once the infrastructure is built.

With no immediate alternative in place, Ontario’s cancellation of the Starlink contract leaves thousands of residents in limbo. While the government insists it is engaging with other telecom providers, no firm commitments have been made.

For now, many rural Ontarians are left asking: If not Starlink, then what? And when?

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