OTTAWA — Telesat’s Lightspeed satellite constellation has fallen so far behind schedule that it’s in danger of losing its permission to operate in Canada and the United States, the Ottawa-based company disclosed in its annual report Wednesday.
OTTAWA — Telesat’s Lightspeed satellite constellation has fallen so far behind schedule that it’s in danger of losing its permission to operate in Canada and the United States, the Ottawa-based company disclosed in its annual report Wednesday.
OTTAWA — Telesat’s Lightspeed satellite constellation has fallen so far behind schedule that it’s in danger of losing its permission to operate in Canada and the United States, the Ottawa-based company disclosed in its annual report Wednesday.
Why: The firm still has not secured the financing it needs for the network of satellites it wants to launch to low orbit over Earth, providing internet connections for commercial customers.
Talking Points
Last fall, it had expected to have nailed that funding down by the end of 2022, for a scaled-back version of a constellation it had planned before the COVID-19 pandemic scrambled its agreement with prime contractor Thales Alenia.
“We continue to make progress with the various parties we’re engaged with and we remain optimistic that they’re going to secure the financing we need to move forward with the program,” CEO Dan Goldberg said in a call with analysts after announcing his company’s fourth-quarter and full-year results. “We know well that investors and others want clarity as to where we stand on Lightspeed financing, and we hope to be in a position to provide that clarity.”
The new problem: Lightspeed is missing key regulatory milestones that require Telesat to launch certain percentages of its satellites by specific deadlines. It has a single prototype in the sky.
In Canada, “Telesat Corporation will not meet the current, required milestones as set out in the authorization,” its annual report said. The company intends to seek an amendment.
In the U.S., Telesat has approval for 117 satellites in the original plan—which it no longer intends to launch. It’s now applied for permission to eventually launch 1,671 satellites, but expects approval for those to depend on how they’ll work with the first batch.
Telesat needs Federal Communications Commission approval of its amended plan for its first Lightspeed satellites, a waiver of FCC rules to allow an extension on getting those satellites up, and approval of its plan for the enlarged constellation.
“If Telesat were to lose its first processing round grant and if Telesat is not granted access to the U.S. market under a second processing round application, Telesat could be prevented from offering its services in the United States,” the annual report said.
How Telesat finished 2022: The company booked operating income of more than $296 million. But after interest, taxes and a foreign-exchange hit, it had a net loss of more than $80 million, after net income of $155 million in 2021 and nearly $245 million in 2020.
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