The Ottawa-based firm will use the funding to develop its constellation of low Earth orbit satellites, called Telesat Lightspeed. Internet service providers (ISPs) and telecom operators will connect to the network to deliver broadband and wireless services, including in rural and remote areas. (The Logic)

Talking point: Telesat has now raised nearly a third of the US$5 billion it expects to spend on Lightspeed’s capital expenses from governments in Canada. Quebec pledged $400 million to the company split equally between equity and a loan in February. Ottawa has already awarded Telesat $85 million for R&D, in July 2019. It also bought cheaper capacity for ISPs for $600 million. Earlier this month, Ontario did the same for $109 million. As part of Thursday’s deal, the federal government gets warrants for Telesat’s stock when it re-lists on the Nasdaq later this year, and will charge a two per cent interest rate on the 20-year loan portion, John Power, spokesperson for Innovation Minister François-Philippe Champagne, told The Logic. Under the deal, Telesat has committed to spend $3.6 billion on capital expenditures in Canada, and maintain 700 jobs. French aerospace firm Thales Alenia is building the bulk of the constellation, starting in Toulouse, but with plans for a Quebec plant. 

This briefing has been updated to clarify the terms of the federal government’s investment in Telesat.