Ontario shells out an undisclosed amount to terminate a $100 million Starlink agreement
In a significant turn of events, the cancellation of the Starlink contract has left northern Ontario residents without a clear path forward for reliable internet access as early as June 2025. The decision, made due to escalating trade tensions between Canada and the United States, saw 25% U.S. tariffs on Canadian goods play a significant role [1].
The province is now seeking alternative ways to bring reliable broadband to underserved communities. Among the providers under consideration are Xplore and the Canadian-owned Telesat Lightspeed satellite network [1]. However, Telesat's satellite network will not be operational until mid-2026, posing a delay in immediate solutions.
Fiber-optic expansion remains another long-term solution, but its cost and construction timeline pose significant challenges [1].
Viasat and Hughes Network Systems, established satellite internet providers, serve underserved and rural areas and could potentially be alternative solutions [2]. Viasat uses geostationary satellites and emphasizes reliable connectivity in remote regions, while Hughes offers customized satellite broadband services suitable for rural and enterprise customers [2].
As of late July 2025, Ontario’s government has not officially announced which specific providers will replace Starlink for northern communities. Discussions and evaluations continue to identify feasible options to ensure residents gain access to reliable internet [1][3][4].
| Provider | Type | Availability/Status | Notes | |--------------------|------------------------|----------------------------------------|-----------------------------------| | Xplore | Satellite broadband | Under consideration | Possible interim solution [1] | | Telesat Lightspeed | Low Earth Orbit satellite | Operational mid-2026 | Canadian-owned, delayed launch [1] | | Viasat | Geostationary satellite| Available now | Reliable with extensive coverage [2]| | Hughes Network | Geostationary satellite| Available now | Established rural broadband [2] | | Fiber-optic | Terrestrial cable | Long-term solution; high cost/timeline | Infrastructure challenges [1] |
Premier Doug Ford described the tariffs as an "economic attack" on Canadian businesses and workers [1]. The exact cost of the cancellation fee for the Ontario contract has not been disclosed, but it was significantly less than the original $100 million price tag [1].
Interestingly, after Ontario, other provinces also decided to end their contracts with Starlink, with Premier Ford citing Elon Musk's close ties to the Trump administration as a reason for the cancellation [1].
[1] The Logic
[2] Satellite Internet Providers in Canada
[3] CBC News
[4] Global News
- The escalating trade tariffs between Canada and the United States have escalated not only in the realm of finance but also in the political sphere, as Premier Doug Ford, in reference to the tariffs, described them as an "economic attack" on Canadian businesses and workers.
- The cancellation of the Starlink contract has opened a new discussion in the field of science, with researchers and officials seeking alternative ways to bring reliable broadband to underserved communities in space-and-astronomy, including Xplore and Telesat Lightspeed satellite networks.
- The general news in Canada is filled with discussions on providers like Viasat and Hughes Network Systems, established satellite internet providers, who, due to their availabity now, could potentially serve as alternative solutions for underserved and rural areas previously contracted with Starlink.
