Canada seeks to diversify away from Starlink amid strategic concerns

Prime Minister Mark Carney has stated that Canada intends to diversify its satellite internet services to reduce strategic and economic dependence on the United States and SpaceX’s Starlink. Carney cited the need for risk management regarding potential U.S. military actions and political shifts as reasons for seeking greater autonomy.

In Ontario, the provincial government under Premier Doug Ford previously cancelled a $100 million Starlink contract in March 2025 following trade tensions and tariffs involving the Trump administration. While the government reached a confidential settlement with SpaceX, Treasury Board President Kinga Surma has declined to disclose the specific cost of the “kill fee,” stating only that it was significantly less than the original contract value.

The cancellation has reportedly impacted the rollout of rural broadband in the province. This political move stands in contrast to the financial interests of the Ontario Teachers’ Pension Plan, which holds a significant stake in SpaceX valued at approximately US$8.7 billion as of June 2024.