Telesat has secured almost all of the funding it needs to start launching its satellite network in 2024.
The federal government has invested the remaining $1.44 billion that the company required to “position Telesat, and Canada, as global leaders in the highly competitive market for satellite services and the fast-growing new space economy,” reads a government press release.
Telesat aims to launch a low-earth orbit satellite array over Canada to offer high-speed internet to more Canadians. This is the same method that StarLink uses to offer internet. Telesat’s advantage is that it plans to lease its network to the carriers in Canada and won’t sell internet plans directly.
This new federal funding is split into two parts, including a $730 million loan and a $650 million preferred share equity investment. The government will also receive warrants that can be converted into common shares.
This also includes a $600 million service provider agreement with the government that allows Canadian carriers to use Telesat satellites at a reduced rate.
In the past, Telesat has stated that it required roughly $5 billion in funding to launch its satellite network. According to BetaKit, the company has secured roughly $4 billion so far, with the remainder expected to be raised soon.