Sun Sep 15 17:34:10 UTC 2024: ## Canada Funds Telesat Satellite Network, Sparks Debate with Starlink

**OTTAWA** – The Canadian government has announced a $2.14 billion loan to Telesat, a Canadian communications company, to develop a low Earth orbit satellite network aimed at improving internet access, particularly in remote areas. The project, touted as the “largest space program ever conceived and built in Canada,” is expected to create 2,000 jobs.

The decision has ignited controversy, with Tesla CEO Elon Musk suggesting that his Starlink satellite internet service could provide the same service for less than half the cost. Conservative MP Michael Barrett echoed this sentiment, questioning the government’s investment in Telesat and calling for more competition.

Industry Minister François-Philippe Champagne dismissed Musk’s claims as “nonsense,” arguing that the government’s loan will help build a “world-class Canadian made satellite network” and support Canadian jobs. He also criticized the Conservative Party’s position, stating they “prefer giving money to foreign billionaires instead of supporting our industry and our workers.”

Starlink currently serves over 400,000 Canadian customers, representing roughly 3% of households. The company offers internet speeds ranging from 25 to 220 MBps, with monthly fees starting at over $100.

This latest development comes after a similar $215 million investment by the federal and Ontario governments to expand Rogers Communications’ fibre-optic network in rural areas.

The debate over the best way to expand internet access to underserved communities in Canada is likely to continue as the government’s investment in Telesat faces scrutiny and challenges from potential competitors.

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