The satellite operator Telesat announced an agreement to receive C $ 1.44 billion (approximately US $ 1.15 billion) from the Government of Canada for investments in the low-orbit constellation (LEO) Speed of light.
Final terms have yet to be reached, but the deal provides for C $ 790 million ($ 631 million) in a 20-year loan and $ 650 million ($ 519 million) in equity investments. The government will receive subscription bonuses that can be exchanged for the ordinary shares of the satellite.
In return, Telesat is expected to invest at least $ 1 billion (US $ 800 million) of capital in Canada as part of the initial LEO constellation, in addition to a certain amount of investment in new fleets and creation. 700 direct jobs.
The government’s effort is part of Canada’s strategy to ensure affordable broadband Internet access over LTE or 5G for all residents. The country had already made a preliminary commitment with Telesat as early as 2019.
The Telesat Lightspeed constellation will initially consist of 298 satellites capable of delivering Gbps speeds globally, according to a company statement. The fleet is expected to enter commercial operation in 2024.
In February, an investment of the province of Quebec of 400 million Canadian dollars (319 million US dollars) had already been announced by Telesat.
“Now we have contracts for about 4 billion Canadian dollars [ou US$ 3,2 bilhões] in funding the program, ”said Company President and CEO Dan Goldberg. “We look forward to securing the remaining short-term financial commitments necessary to fully fund Telesat Lightspeed.
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