Ontario’s contract with Starlink will be cancelled, even if US tariffs are lifted
Ford said in a press conference that due to US tariffs imposed against Canada, Ontario canceled a $100 million contract with Elon Musk’s Starlink satellite company it signed in November. Ford said in a press conference that due to US tariffs imposed against Canada, Ontario canceled a $100 million contract with Elon Musk’s Starlink satellite company it signed in November.
“We’re ripping up Ontario’s contract with Starlink. It’s done. It’s gone. Ford said that we won’t give contracts to those who encourage and enable economic attacks against our province and country. It’s not the only time the contract has been said to be cancelled. In early February, as tariffs were looming against Canada, Ford said that it would also be canceled. But that apparently was put on hold when tariffs against Canada and Mexico were delayed by president Donald Trump’s administration.
At the time, Musk, the CEO of SpaceX, the company that owns Starlink, responded via X, “Oh well. “
Neither SpaceX nor Starlink have publicly commented on the second news of cancellation. An email sent to SpaceX to seek a response did not receive a prompt reply. Starlink has an estimated 533,000 Canadian customers. It is unclear what will become of those residents in Ontario who rely on Starlink’s internet service. Telestat is one of the satellite companies that has a presence in Canada. It is developing a new service called Lightspeed but is not expected to be launched for several more years.
Unclear what will happen to customers
Micah Walter-Range, president of the space-consulting firm Caelus Partners and contributor to the S-Network Space Index fund, said the cancellation creates an opportunity for other internet providers and satellite companies based in Canada or regions including Europe.
But, Walter-Range added, it is unlikely Ontario’s move will put Starlink’s overall business in jeopardy. “The business will not be affected significantly for the time being,” Walter-Range said. “In many areas, Starlink simply is the best choice, even if the customers don’t like Musk or Trump. Recent events have created incentives for government and other customers to look for alternatives in the long-term. “
Walter-Range said that alternatives such as Telestat currently rely on satellites in higher orbits that provide lower-quality internet service. For Lightspeed, “It will take some time beyond that for enough satellites to be operational to provide a solid service,” he said.
Despite the Ontario ban, some customers still might be able to do business with Starlink.
“Unless the Canadian government bans Starlink at the national level and revokes its authorization to transmit signals over Canada, a customer who buys from Starlink directly should be unaffected,” Walter-Range said. Walter-Range said that unless the Canadian government bans Starlink at the national level and revokes its authorization to transmit signals over Canada, a customer who buys directly from Starlink should not be affected. “
