Canada’s federal and provincial governments have reaffirmed their commitment to the Telesat Lightspeed satellite network project. This ambitious initiative aims to provide high-speed internet access to all Canadians by 2030, but at a steep price tag that’s raising eyebrows across the tech industry.
Canada and Quebec are jointly investing $2.62 billion in the Telesat Lightspeed project, which is expected to create 967 jobs. This substantial investment translates to a public subsidy of nearly $3 million per job created. The total project cost exceeds $6 billion, highlighting the massive scale of this undertaking.
While Telesat Lightspeed sets its sights on 2030, Elon Musk’s Starlink constellation is already making waves in the Canadian market. With over 400,000 satisfied users in Canada and no government subsidies, Starlink has demonstrated its ability to provide reliable high-speed internet to rural and remote locations.
Elon responding to the news, pointed out the disparity in government support: “Competitors receive vastly more subsidies than SpaceX or Tesla. The success of SpaceX/Tesla is in spite of competitor subsidies!” He cited examples of failed subsidized projects competing against Tesla’s Supercharger network and Starlink’s rural broadband efforts in the United States.
As Canada progresses with its Telesat Lightspeed project, questions arise about the efficiency of such large-scale government investments in the face of existing market solutions. Will this massive investment in Telesat Lightspeed pay off, or will it struggle to compete with more agile, privately-funded alternatives?
As the satellite internet race heats up, it’s clear that Canada is betting big on Telesat Lightspeed. Whether this gamble will result in a winning hand for Canadian connectivity or leave taxpayers seeing stars remains to be seen.