Canada withdraws from a $100 million agreement with SpaceX for Starlink internet services.
Ontario Cancels $100 Million Starlink Contract Amidst U.S. Tariffs
In a move to counter U.S. tariffs on Canadian goods, Ontario has officially cancelled its $100 million contract with SpaceX's Starlink satellite internet service[1][2][3][4]. The agreement, signed in November 2024, aimed to provide high-speed internet to approximately 15,000 rural and remote homes and businesses in the province.
The cancellation was confirmed by Ontario’s Minister of Energy and Mines, Stephen Lecce, who cited standing up for Canada amidst the trade dispute as a primary reason[1][3]. However, the exact value of the exit fee remains undisclosed, with sources suggesting it was "substantially less" than the full $100 million[2][3][4].
As the province seeks an alternate solution for long-term, stable high-speed internet access, Ontario has not yet announced a replacement provider for the cancelled Starlink contract[2][3]. The Ontario government is working on identifying a Canadian-based solution to fill connectivity gaps left by the Starlink cancellation, but no specific providers or technologies have been confirmed yet[2][3].
The Starlink satellite internet service in Canada recently surpassed 500,000 active subscribers[5]. Interestingly, Starlink powers Canadian telecom giant Rogers' recently launched satellite-to-phone service[6].
The decision to cancel the agreement with SpaceX follows Premier Doug Ford's public declaration earlier this year that Ontario would "rip up" its agreement in response to U.S. tariffs on Canadian goods[1][3]. Ontario NDP Leader Marit Stiles criticized the cancellation, stating that a proper deal for northern and rural communities was not secured[7].
| Aspect | Details | |----------------------------|------------------------------------------------------| | Contract Value | C$100 million (approx. $68.4 million USD) | | Service Scope | Satellite internet for 15,000 rural/residential homes| | Reason for Cancellation | U.S. tariffs on Canadian goods, political/principle stance | | Cost of Cancellation | Undisclosed; believed to be less than contract value | | Alternatives Considered | Working on Canadian alternatives; no specific providers announced |
With the Starlink agreement terminated, Ontario is now focused on finding a viable alternative for reliable high-speed internet in remote communities. The province's efforts to identify a Canadian provider and fill the connectivity gaps left by the cancellation are ongoing.
[1] CBC News [2] Global News [3] Toronto Star [4] CTV News [5] CBC News [6] The Globe and Mail [7] Ottawa Citizen
- In light of the cancellation, Ontario is now actively seeking a Canadian-based provider to replace SpaceX's Starlink satellite internet service as they work towards finding a viable alternative for reliable high-speed internet in remote communities.
- Technology, specifically satellite internet services like Starlink, has become increasingly important for rural and remote communities in Ontario, as the region searches for a solution that can provide long-term, stable high-speed internet access, given the recent cancellation of the Starlink contract.
