Prime Minister Mark Carney’s government has awarded Telesat a $2.3-billion military satellite contract, putting his longtime friendship with the company’s CEO back under political scrutiny.
Announced by Ottawa’s Defence Investment Agency and Telesat LEO, the agreement will provide the Canadian Armed Forces with secure satellite communications across the Arctic beginning in 2028.
The $2.3-billion contract could reach roughly $2.7 billion if Ottawa exercises its extension options.
It follows another major federal commitment to Telesat.
Days after Carney became an economic adviser to Justin Trudeau’s Liberal Party in September 2024, Ottawa announced a $2.14-billion, 15-year loan to finance the company’s Lightspeed low-Earth orbit satellite constellation.
Together, the two commitments total more than $4.4 billion — a $2.14-billion repayable loan and a $2.3-billion procurement contract.
