The $460 million agreement enables Internet and mobility service providers to acquire Telesat LEO capacity at substantially reduced rates and bring universal broadband connectivity to rural, Northern and Indigenous communities, the announcement said. Telesat will be eligible to receive amounts over ten years, once the Telesat LEO constellation enters service. The agreement was first outlined in a memorandum in July 2019.
“With just 41% of rural households and only approximately one quarter of Indigenous communities in Canada having access to fast, reliable broadband Internet service today, delivering affordable, high quality connectivity to all of Canada is essential,” Telesat said.
“Telesat LEO will provide the reliable, secure, fibre-like broadband connections needed to bridge the digital divide in Canada, ensuring that Canadians living in rural and remote communities have access to affordable high-quality broadband that meets the Canadian Radio-television and Telecommunications Commission’s (CRTC) goal of at least 50 Mbps download, 10 Mbps upload speeds with unlimited data.”