Telesat secures $2.3 billion Arctic military satcom contract, expanding Telesat Lightspeed network and capacity by 44%

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Largest contract in company's six-decade history expands Telesat Lightspeed constellation to 225 satellites and delivers secure Mil-Ka Arctic connectivity for the Canadian Armed Forces OTTAWA, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Telesat LEO ULC, a subsidiary of Telesat Corporation (Nasdaq and TSX: TSAT), one of the world's largest and most innovative satellite operators, today announced that it has signed a $2.3 billion Telesat Lightspeed services contract with Canada's Defence Investment Agency (DIA) to deliver secure Military Ka-band (Mil-Ka) Arctic connectivity to the Canadian Armed Forces (CAF) under the Enhanced Satellite Communications Project – Polar (ESCP-P) program. The contract also includes two five-year option periods valued at approximately $200 million each, bringing the total contract value to $2.7 billion. All amounts are in Canadian dollars unless otherwise noted. The contract is for a period of 15 years of service, including the option years, with service under the contract beginning in 2028. The expected start of Telesat Lightspeed global service delivery remains on track for Q1 2028. This is the largest contract in Telesat's history and will significantly expand the scale and capacity of the Telesat Lightspeed network, positioning the company for accelerated growth. This agreement allows Telesat to immediately expand its Telesat Lightspeed network by 69 fully funded satellites, bringing the initial constellation from 156 to 225 satellites, all to be built by MDA Space, with both commercial and Mil-Ka capacity. The expansion will be funded through milestone-based payments from the Government of Canada starting in Q3 2026. "This contract ensures the Canadian Armed Forces will have access to secure, resilient and sovereign connectivity years earlier than originally planned, at a great value for money, and with a scalable architecture designed to meet future global operational requirements and support interoperability with Canada's allies and partners," said Dan Goldberg, Telesat's President and CEO. "High speed and low latency connectivity is critical for modern military forces, and Telesat Lightspeed is expected to be foundational for future CAF and allied governments' operations." Goldberg added, "This contract also represents a step change in the scale and commercial potential of Telesat Lightspeed. The significant expansion of our ...

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