Telesat, MDA Soar on Billions in Canada Military Contracts

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessTelesat, MDA Soar on Billions in Canada Military ContractsTelesat Corp. and MDA Space Ltd. shares soared after a record deal to build an Arctic satellite system for Canada’s military.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Telesat Corp. and MDA Space Ltd. shares soared after a record deal to build an Arctic satellite system for Canada’s military.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOttawa-based Telesat, Canada’s largest domestic satellite operator, said it signed a 15-year contract for its forthcoming constellation of low-Earth orbit satellites to provide secure connectivity to the country’s armed forces. With two five-year option periods, its total value is C$2.7 billion ($1.9 billion).Telesat shares jumped 32% to C$52.91 as of 12:39 p.m. in New York, the most intraday since August 2023. MDA shares in Toronto jumped 16% to C$49.04, their biggest intraday rise in a year. Telesat is pivoting from decades of broadcasting television and data signals from geosynchronous orbit 22,300 miles away from Earth. Instead, it’s building a brand-new fleet, dubbed Lightspeed, to whiz around in low-Earth orbit, which is much closer and offers faster transmissions. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe audacious financial maneuvers required to finance the new satellites have put pressure on the company’s balance sheet.Telesat is positioning Lightspeed as an alternative to the technology currently dominated by Starlink, run by Elon Musk’s Space Exploration Technologies Corp. The Canadian service is not due to begin until the first quarter of 2028.Telesat said in a statement Tuesday that the deal increases the “fully-funded” size of its planned Lightspeed fleet by 69 satellites to a total of 225, and milestone-based payments start in the third quarter of this year. It’s the largest contract in the company’s 57-year history.The extra satellites mean a contract extension worth C$474 million for Ontario-based MDA Space, which is helping build the fleet. The project fits with Prime Minister Mark Carney’s ambition to reduce his country’s reliance on the US. However, Canada can’t completely escape a dependence on Musk’s SpaceX: It will use the US company’s rockets to launch the satellites. This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.