A major company partly owned by the French and U.K. governments is proposing a plan worth around $250 million to offer the Canadian military with secure satellite broadband coverage in the Arctic, as reported by CBC News. Eutelsat, a competitor to Elon Musk’s Starlink, currently delivers certain services to the Canadian military. They aim to strengthen this partnership as Canada seeks to broaden defense contracts beyond U.S. suppliers.
During last year’s G7 summit in Alberta, French President Emmanuel Macron reportedly raised the idea of Canada’s Department of National Defence joining a French Ministry of Defence initiative with Eutelsat to Canadian Prime Minister Mark Carney. The primary concern raised by the prime minister regarding the proposal was its impact on Telesat Corporation, a former Canadian Crown corporation privatized in the 1990s.
Telesat is in the process of developing its Lightspeed system, a constellation of Low Earth Orbit (LEO) satellites for high-speed broadband. In December, the Canadian government announced 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 stationed in Latvia. They offer a “sovereign capacity capability” to Canada, ensuring ownership of all capacity in the Far North or any required location, thereby granting control over the service without dependence on a single individual who may disconnect it for political reasons.
The reference made by the Eutelsat official pertains to reports of Starlink being deactivated in Ukraine by Musk during a critical period when the country was striving to reclaim territory from Russia in late September 2022. This move disrupted operations, with at least 100 terminals losing connectivity in regions like Kherson, a vital area north of the Black Sea.
Despite Starlink’s substantial customer base in Canada and its key role in providing broadband internet access in remote northern regions, Musk’s association with the U.S. government has led to a decline in enthusiasm. This decline was evident when Ontario, displeased with U.S. tariffs, officially terminated a $100-million contract with Starlink to offer services in northern communities last summer.
Eutelsat has secured significant contracts with the U.S. government, including the Pentagon. However, under the current U.S. administration, the company witnessed the non-renewal of a substantial U.S. Department of Defence contract worth $55 million. The company’s CFO attributed this decision to the change in geographical priorities and cost-cutting efforts by the new administration.
Eutelsat’s offerings include secure communication services in the aviation sector, connecting to manned aircraft, drones, and airborne intelligence, surveillance, and reconnaissance aircraft. The French government holds the largest stake in the company, with major shares owned by Indian multinational Bharti Space Ltd. and the U.K. government.
Eutelsat emphasizes the importance of being a reliable defense partner and having control over secure systems and data in its proposal to Canada. They aim to enable Canada to partner with trusted nations and provide essential support for defense projects, such as over-the-horizon radar sites, NORAD modernization initiatives, and defense expansion into the North.
“We are offering them the opportunity to have control and collaborate with trusted nations, providing all necessary support for defense projects like over-the-horizon radar sites, NORAD modernization, and expansion into the North,” stated van Dyke. “We have the capability today; it only requires the Canadian government to accept the satellite capacity from us and allocate it accordingly.”