Ontario’s Contract with Starlink is Canceled, Even if US Tariffs are Lifted
it’s over Starlink According to Canadian Prime Minister Doug Ford, in Ontario. Ford says At the press conference Ontario cancels due to U.S. tariffs on Canada $100 million contract with Elon Musk’s Starlink Satellite Company it Signed in November.
“We are signing a contract with Starlink for Ontario. It’s done. We are not going to award contracts to people who are enabling and encouraging economic attacks on our province and our country,” Ford said.
This is not the first time that the contract has been said to have been cancelled: in early February, when tariffs on Canada were approaching, he said it would be cancelled. But this was clearly put on hold when tariffs on Canada and Mexico were delayed by President Donald Trump’s administration.
At that time, Musk, CEO of SpaceX, a company that owns Starlink, responded through X, “Oh well. ”
Starlink and SpaceX have not published comments on the second cancellation of the news and have not immediately returned to SpaceX’s email seeking a response.
The contract is designed to provide high-speed Internet services to rural residents and citizens in northern Ontario. Starlink is It is estimated to have approximately 533,000 customers in Canadait is not clear what will happen to Ontario residents who already rely on Starlink Internet services. Satellite companies operating in Canada include Telestat, which is building a service called Lightspeed, but is not expected to be launched for a few years.
Not sure what happens to the customer
Micah Walter-Rangepresident of space consulting firm Caelus partners and for S-Network Space Index FundThe cancellation indicates that it creates opportunities for other Internet providers and satellite companies in Canada or regions including Europe.
But Walter-Van added that Ontario’s move could not put Starlink’s overall business at risk.
“At present, the business is unlikely to be hit hard,” he said. “In many places, Starlink is just the best option even if customers don’t like Musk or the Trump administration. Recent events have indeed provided incentives for the administration and other customers to long-term seeking alternatives.”
Alternatives such as Telestat currently rely on satellites in higher orbits that provide lower quality internet services, Walter-Range said. For Lightspeed, “It takes some time to get enough satellites to operate to provide solid service,” he said.
Despite the Ontario ban, some customers can still do business with Starlink.
“Unless the Canadian government bans star-striped links at the national level and revokes its authorization to spread signals to Canada, customers who purchase directly from the star-striped links will not be affected,” Walter-Range said. “However, if Canadian residents gain access through a subsidized government program using Starlink as a provider, they can switch them to alternative options, or have no choice at all.”
