Telesat secures $2.3 billion Arctic military satcom contract

 August 4, 2026

Telesat has signed a $2.3 billion Telesat Lightspeed services contract with Canada’s Defence Investment Agency (DIA) to deliver secure Military Ka-band (Mil-Ka) Arctic connectivity to the Canadian Armed Forces (CAF) under the Enhanced Satellite Communications Project – Polar (ESCP-P) program. The contract also includes two five-year option periods valued at approximately $200 million each, bringing the total contract value to $2.7 billion. All amounts are in Canadian dollars unless otherwise noted.

The contract is for a period of 15 years of service, including the option years, with service under the contract beginning in 2028. The expected start of Telesat Lightspeed global service delivery remains on track for Q1 2028.

This is the largest contract in Telesat’s history and will significantly expand the scale and capacity of the Telesat Lightspeed network, positioning the company for accelerated growth. This agreement allows Telesat to immediately expand its Telesat Lightspeed network by 69 fully funded satellites, bringing the initial constellation from 156 to 225 satellites, all to be built by MDA Space, with both commercial and Mil-Ka capacity. The expansion will be funded through milestone-based payments from the Government of Canada starting in Q3 2026.

“This contract ensures the Canadian Armed Forces will have access to secure, resilient and sovereign connectivity years earlier than originally planned, at a great value for money, and with a scalable architecture designed to meet future global operational requirements and support interoperability with Canada’s allies and partners,” said Dan Goldberg, Telesat’s President and CEO. “High speed and low latency connectivity is critical for modern military forces, and Telesat Lightspeed is expected to be foundational for future CAF and allied governments’ operations.”

Goldberg added, “This contract also represents a step change in the scale and commercial potential of Telesat Lightspeed. The significant expansion of our constellation, combined with burgeoning demand for secure satellite communications worldwide, positions us to accelerate the growth of our business while serving the evolving and mission critical requirements of defence and commercial customers.”

This initial contract represents the first phase of the ESCP-P deliverables to meet the Mil-Ka service capability with Telesat Lightspeed. Under the agreement announced today, Telesat will deliver Mil-Ka connectivity across Canada’s Arctic region to the CAF, spanning 65 to 90 degrees North latitude. The Mil-Ka portion of the ESCP-P program also includes end-to-end network integration services – including user terminals, ground and control infrastructure, training, and support services – which will be covered under a separate agreement between the DIA and Telesat.

With secure Mil-Ka capabilities integrated into the constellation, Telesat Lightspeed is positioned to meet not only Canada’s Arctic requirements but also the broader needs of NATO members and other allied partners, supporting interoperability and mission coordination across geographic regions and warfighting domains.

The 69 additional Telesat Lightspeed satellites announced today will be built by MDA Space at its state-of-the-art, high-volume satellite manufacturing facility in Montreal and launched by SpaceX on already-secured Falcon 9 rockets in addition to another Falcon 9 rocket that remains subject to the completion of a launch services agreement. This expansion brings Telesat’s total expected investment in its network of 225 satellites to approximately $7 billion, with $2.7 billion invested to date. The program is expected to create and sustain thousands of high-quality jobs in Canada, spur domestic exports, and ensure Canada is at the forefront of the New Space Economy.

The ESCP-P program also includes an Ultra-High Frequency (UHF) and X-band constellation and services, for which MDA Space will be the prime contractor responsible for end-to-end mission delivery. MDA Space continues to advance the definition and development of this portion of the ESCP-P program, for which Telesat will serve as a key subcontractor, including acting as the overall systems integrator for the implementation of the Mil-Ka, UHF, and X band networks.