A proposal worth around $250 million is being presented to Canada by a company predominantly owned by the French and U.K. governments to offer the military with secure satellite broadband coverage in the Arctic, as reported by CBC News. Eutelsat, a competitor to Elon Musk’s Starlink, currently provides some services to the Canadian military and seeks to enhance the partnership as Canada aims to broaden defense contracts beyond U.S. suppliers.
The idea for Canada’s Department of National Defence to participate in a French Ministry of Defence initiative with Eutelsat was reportedly discussed by French President Emmanuel Macron and Prime Minister Mark Carney during last year’s G7 summit in Alberta.
Telesat, a former Canadian Crown corporation privatized in the 1990s, is in the process of developing its Lightspeed system, a network of satellites in Low Earth Orbit (LEO) for high-speed broadband. The Liberal government announced in mid-December a strategic partnership with Telesat and MDA Space to enhance the Canadian Armed Forces’ military satellite communications (MILSATCOM) capabilities.
An official from Eutelsat mentioned that the company, in collaboration with Canadian partners, already operates its satellite network and has been supporting the Canadian military in Latvia. The company offers what they term as a “sovereign capacity capability,” where Canada would have full ownership of the satellite capacity in the Far North or any other required area.
Eutelsat aims to provide Canada with control over secure systems and data, emphasizing the importance of having a reliable defense partner. The company highlights its ability to support projects such as over the horizon radar sites, NORAD modernization initiatives, and defense expansion into the North.
Eutelsat has been involved in providing secure communications in aviation, linking manned aircraft, drones, and airborne intelligence, surveillance, and reconnaissance aircraft. The French government holds the largest share in the company, with Indian multinational Bharti Space Ltd. and the U.K. government also being major shareholders.
Starlink, a subsidiary of Musk’s SpaceX, has been a significant provider of broadband internet access in Canada’s Far North. However, Ontario officially terminated a $100-million contract with Starlink last summer due to displeasure over U.S. tariffs. Eutelsat, which has had substantial contracts with the U.S. government including the Pentagon, faced non-renewal of a large U.S. Department of Defense contract since the return of Trump to office.
The company’s CFO attributed the non-renewal to changes in the Defense Department’s geographic prioritization by the new administration and efforts to reduce government spending. Eutelsat stresses the importance of Canada partnering with trusted nations to ensure control over secure systems and data, offering the necessary support for defense projects.