A joint venture involving the French and U.K. governments has proposed a $250 million initiative to supply the Canadian military with secure satellite broadband coverage in the Arctic, as per information obtained by CBC News. Eutelsat, a competitor to Elon Musk’s Starlink, is already serving the Canadian military to some extent and is seeking to enhance the collaboration as Canada aims to expand defense contracts from U.S. suppliers.
The proposal for Canada’s Department of National Defence to participate in a French Ministry of Defence project with Eutelsat was reportedly discussed by French President Emmanuel Macron with Prime Minister Mark Carney during the previous year’s G7 summit in Alberta. A key concern raised by the prime minister pertained to the impact on Telesat Corporation, a former Canadian Crown corporation privatized in the 1990s.
Telesat is currently developing its Lightspeed system, a constellation of Low Earth Orbit (LEO) satellites for high-speed broadband. Moreover, the Liberal government recently announced a strategic partnership with Telesat and MDA Space to enhance the military satellite communications (MILSATCOM) capabilities of the Canadian Armed Forces.
Eutelsat disclosed that they possess their own operational satellite network, in collaboration with Canadian partners, and have been supporting the Canadian military stationed in Latvia. According to David van Dyke, Eutelsat’s Canada General Manager, the company can offer Canada a “sovereign capacity capability,” ensuring Canada’s ownership of all necessary capacity in remote regions. This arrangement would prevent a single entity from disconnecting the service for political reasons, as exemplified by Musk’s decision to deactivate Starlink in Ukraine during a critical military operation in late September 2022.
Starlink, a major provider of broadband internet in northern Canada, has encountered diminished favor due to Musk’s association with the U.S. government and related controversies. This led Ontario to terminate a substantial contract with Starlink amid trade disputes with the U.S. Eutelsat, although having significant U.S. government contracts, experienced non-renewal of a large Defense Department contract under the new U.S. administration, citing changes in geographic priorities and budget constraints.
Eutelsat’s pitch to Canada emphasizes the importance of having a reliable defense partner and maintaining control over secure systems and data. By partnering with trusted nations, Eutelsat aims to support defense initiatives such as over-the-horizon radar sites, NORAD modernization projects, and defense expansion into northern regions.
The company’s offerings include secure communications for aviation, connecting manned aircraft, drones, and airborne intelligence platforms. With the French government as its predominant shareholder, along with significant ownership by Indian multinational Bharti Space Ltd. and the U.K. government, Eutelsat is positioned to provide Canada with the required satellite capacity for defense purposes.