Telesat announces funding deals with governments of Canada, Quebec

Telesat Corp. is another step closer to launching its satellite network as it announced the finalization of two funding agreements with the federal government and Quebec. The company said in a press release Friday that it has all the financing it needed in place to fund the global launch of its Lightspeed Low Earth Orbit (LEO) broadband satellite network. That includes the satellites themselves, launch vehicles to deploy them, and an integrated terrestrial network of landing stations, as well as business and operational support for the network. The company continues to work toward a mid-2026 launch, with Global service scheduled for late 2027. Telesat is getting a $2.14 billion loan from the federal government with a floating interest rate that is 4.75 per cent above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity. The feds will receive warrants for 10 per cent of the common shares of Telesat LEO based upon an equity valuation for Telesat LEO of US$3 billion, the company said. Telesat is also getting a $400 million loan from the government of Quebec, with terms that “largely mirror” the federal loan. The company expects capital expenditures for the program this year to be in the range of $1 billion to $1.4 billion. “We are pleased to conclude these funding arrangements with the governments of Canada and Quebec as we make strong progress on the build-out of the revolutionary Telesat Lightspeed constellation, the largest space program in Canada’s history,” said Dan Goldberg, Telesat’s CEO, in a press release. “Telesat Lightspeed will help bridge the digital divide in Canada and throughout the world, create and sustain thousands of high-quality jobs in Canada, deliver billions of dollars of investment in the Canadian economy, spur domestic innovation and exports, and ensure that Canada and Quebec are at the forefront of the rapidly growing New Space Economy,” Goldberg said. Telesat also noted in its press release that it intends to help governments, including the federal government, “modernize their satellite communications technology and make meaningful contributions to North Atlantic Treaty Organization (NATO) and North American Aerospace Defense Command (NORAD) modernization to bolster defence for Canada and its allies.” The company said its satellite manufacturer MDA Space, which it announced its deal with one year ago, has chosen and onboarded more than 90 per cent of the suppliers needed for Lightspeed. “We are cementing Canada’s position as a global leader in the new space economy,” said Minister of Innovation, Science and Industry François-Philippe Champagne in the press release. “This investment will create high-skilled jobs, support innovation, and secure Canada’s telecommunications systems.” Earlier this week, Telesat announced it will work with Ottawa-based Calian Group Ltd. for the deployment of Calian’s “Element Management System” for the Telesat Lightspeed Low Earth Orbit (LEO) satellite network.

Telesat announces funding deals with governments of Canada, Quebec

Telecom |
By Hannah Daley
| September 13, 2024

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Telesat announces funding deals with governments of Canada, Quebec

Telecom | By Hannah Daley | September 13, 2024

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

LEO market booming, Telesat says in Q3 reporting

Satellite is ‘here to stay’ as connectivity solution, industry players say

Telesat deal good for Canada, Champagne tells INDU committee

Champagne rebukes Tories for Musk connectivity query; Telesat hires retired brigadier-general

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Telecom |
By Hannah Daley
| September 13, 2024