The government provides a loan of $790 million and makes a $650 million preferred equity investment in Telesat Lightspeed, Telesat said. In return, Telesat commits to invest in Canada $1 billion of capital expenditures for its initial Lightspeed constellation and the lesser of $2.6 billion or 50% of certain capital expenditures for its subsequent constellation; it also commits to create hundreds of Canadian high-quality, full-time jobs and co-ops and provide academic scholarships”, the company said.
The Telesat Lightspeed network is initially comprised of 298 satellites with next-generation technologies to deliver multiple Gbps speeds and fibre-like connectivity.
With the new investment by the Canadian government of Quebec, Telesat now has arrangements for approximately $4 billion in funding for the program, the company says.
Telesat Lightspeed is “the largest space program ever conceived in Canada and will be the most innovative, cutting-edge broadband satellite network in the world”, Telesat says.
The European Thales Alenia Space is the prime contractor to build the Lightspeed satellites.