The 15-year deal expands Telesat Lightspeed by 69 satellites, lifts total potential value to C$2.7 billion and keeps global service targeted for Q1 2028.
Telesat said its subsidiary Telesat LEO ULC has signed a C$2.3 billion services contract with Canada’s Defence Investment Agency to provide secure Military Ka-band Arctic connectivity for the Canadian Armed Forces under the Enhanced Satellite Communications Project - Polar program. The agreement includes two five-year option periods worth about C$200 million each, taking total potential value to C$2.7 billion, and runs for 15 years of service including the option years. Telesat said the contract is the largest in its history and will allow an immediate expansion of the Telesat Lightspeed low Earth orbit constellation by 69 fully funded satellites, taking the initial network to 225 from 156, while global service remains targeted for the first quarter of 2028. The company said the expansion will be financed through milestone-based payments from the government starting in the third quarter of 2026, and that the satellites will be built by MDA Space in Montreal and launched by SpaceX on Falcon 9 rockets, with one additional launch still awaiting a final agreement. Telesat also said the initial contract is the first phase of the ESCP-P deliverables, while end-to-end integration services for user terminals, ground and control infrastructure, training and support will be handled under a separate agreement. The company said the secure Mil-Ka capability is intended to support Canada’s Arctic requirements and broader interoperability with NATO members and other allies, and that the broader program also includes an Ultra-High Frequency and X-band constellation for which MDA Space will be prime contractor.