Gatineau conference spotlights Ottawa’s move away from Starlink and ties to Telesat

Diplomatic critique at Gatineau event highlights Canada’s satellite strategy

At a space industry gathering in Gatineau on Tuesday, U.S. Ambassador to Canada Pete Hoekstra publicly questioned Ottawa’s decision to back Telesat’s Lightspeed network rather than SpaceX’s Starlink, saying Canada has made “a conscious decision” to move away from the U.S.-based company. The remarks drew attention to a policy shift that has significant implications for Canada’s connectivity strategy and its defence procurement plans.

The debate comes after a series of large government investments and loans in Telesat’s project. Federal support for Lightspeed began with an $85 million investment in 2019 and grew to a commitment of up to $600 million for capacity a year later. In September 2024, the federal government agreed to a $2.14 billion repayable loan to Telesat, and the province of Quebec added a $400 million loan.

Most recently, on Aug. 4, 2026, the Defence Investment Agency awarded Telesat an Arctic military satellite contract valued at about $2.3 billion. That deal places the company at the centre of Canada’s efforts to boost northern communications and surveillance capabilities — priorities Ottawa has framed around sovereignty and national security.

“If it’s not Canada, we’re moving forward; the space will be filled,” Hoekstra said, according to published reports.

Irony and ground realities

Observers noted an element of irony: although Ottawa is directing public funds toward a domestic satellite system, Telesat previously secured launches with SpaceX, booking 14 Falcon 9 missions as of 2023. Telesat’s release connected to the Arctic contract also states the new satellites will be launched by SpaceX on already-secured Falcon 9 rockets.

At the same time, SpaceX’s commercial results show a rapidly expanding business. In third-quarter figures released this week, the company reported 13.6 million Starlink consumer subscribers as of Sept. 30, up by 1.6 million since June and nearly double compared with the previous year. The company also reported a net income of US$4.4 billion on revenue of US$14.6 billion for the quarter, marking a milestone in profitability.

• What Ottawa has said: Prime Minister Mark Carney has indicated a desire to move away from Starlink, and Defence Minister David McGuinty framed the Arctic contract as a matter of defending sovereignty and security.
• What the U.S. says: Ambassador Hoekstra signalled the United States will adapt to Canada’s choice and expects other partnerships to form if SpaceX is excluded.
• Commercial reality: SpaceX continues to grow rapidly while also providing launch services that have been contracted by Telesat.

Local and national implications

The exchange in Gatineau highlights tensions at the intersection of industrial policy, national security and international diplomacy. For residents of the National Capital Region, the dispute is not merely rhetorical: the procurement choices affect which companies supply services across remote communities and the Arctic — regions where connectivity is often limited and strategically important.

Federal financial backing for Telesat aims to stimulate a Canadian-led satellite industry and to ensure that domestic providers can supply capacity to rural internet operators. Critics argue, however, that excluding a major global operator risks redundancy or even higher costs, while supporters say building Canadian capacity strengthens sovereignty and domestic capability.

The debate in Gatineau is likely to continue as federal officials, defence planners and industry stakeholders weigh the trade-offs between national capability and integration with global commercial providers. For now, Ottawa’s financial commitments and the Arctic contract make Telesat a central actor in Canada’s satellite strategy, even as launch partnerships and the broader market keep SpaceX firmly in play.