The Ontario government has officially ended its $100 million contract with SpaceX’s Starlink, agreeing to pay a negotiated fee to exit the agreement. The deal, signed in November 2024, was intended to deliver high-speed satellite internet to approximately 15,000 homes and businesses in northern Ontario but was cancelled earlier this year due to escalating trade tensions between Canada and the United States.
A spokesperson for Premier Doug Ford confirmed the contract’s cancellation, noting that the province is now seeking alternative ways to bring reliable broadband to underserved communities. “Our government has cancelled the Starlink contract,” the spokesperson told Global News.
Although the exact cost of the cancellation fee has not been disclosed, government insiders have confirmed that Ontario paid “not zero” and that the sum was significantly less than the original $100 million price tag.
Trade Tariffs Cause Cancellation
The decision to cancel the contract was fueled by 25% U.S. tariffs on Canadian goods, introduced earlier this year under the Trump administration. Premier Ford, who has been outspoken about defending Ontario’s economic interests, described the tariffs as an “economic attack” on Canadian businesses and workers.
Ford also noted Elon Musk’s close ties to the Trump administration as a reason for the cancellation. After Ontario, other provinces followed suit, also vowing to end their contracts with Starlink.
Northern Communities Left in Limbo
The cancellation leaves northern Ontario residents, who were set to receive Starlink service as early as June 2025, without a clear path forward for reliable internet access. Starlink’s low-latency satellite service was seen as a transformative solution for rural households that struggle with outdated or unreliable infrastructure.
The provincial government has yet to announce which providers may step in to fill the gap. Options such as Xplore or the Canadian-owned Telesat Lightspeed network are being discussed, but Telesat’s satellite network will not be operational until mid-2026. Fiber-optic expansion remains another long-term solution, though its cost and construction timeline pose significant challenges.
Highlighting the lack of reliable alternatives to Starlink, Quebec signed a nearly $1 million contract with SpaceX to provide high-speed internet to rural courthouses, with government officials stating there were no viable options available.
