Telesat, Based in Ottawa, Wins $2.3B Arctic Military Satellite Contract for Canadian Armed Forces

On August 4, 2026, Telesat, based in Ottawa, announced a landmark $2.3 billion contract with Canada’s Defence Investment Agency (DIA) aimed at enhancing secure connectivity for the Canadian Armed Forces as part of the Enhanced Satellite Communications Project – Polar (ESCP-P). This agreement represents the largest contract in Telesat's history and marks the initiation of the strategic partnership formed in December 2025 among the Government of Canada, Telesat, and MDA Space, under Canada's Defence Industrial Strategy.

The contract spans 15 years, with provisions for two five-year extensions valued at approximately $200 million each, pushing the potential contract amount to $2.7 billion. The Canadian government will start milestone-based payments in the third quarter of 2026, with service rollout planned for the first quarter of 2028.

A key objective of the contract is to address the Arctic connectivity gap, enabling the provision of Military Ka-band (Mil-Ka) satellite communications that facilitate high-frequency communications essential for military operations in high-latitude regions. This contract also necessitates a significant expansion of the Telesat Lightspeed satellite constellation, increasing it from 156 to 225 satellites, with 69 new satellite builds being managed by MDA Space, the primary contractor for the project.

The Canadian government anticipates that the procurement will generate or sustain 2,600 jobs annually across the nation and contribute $335 million annually to GDP over the anticipated seven-year period. The contract represents a practical application of the Defence Investment Agency's Strategic Partner model, designed to streamline procurement processes and fast-track delivery while involving Canadian industry in complex defence initiatives. This model exemplifies the "Build-Partner-Buy" framework embedded in the Defence Industrial Strategy, ensuring Telesat and MDA Space provide robust Arctic connectivity aligned with Canadian military requirements.

Dan Goldberg, President and CEO of Telesat, emphasized the contract's critical role in providing the Canadian Armed Forces with early access to secure and sustainable connectivity, improving overall value and creating a scalable architecture suitable for future operational demands. In a statement, The Honourable David J. McGuinty, Minister of National Defence, articulated the project's significance in furnishing the military with next-generation satellite communications, underscoring its importance for operational reliability, sovereignty, and national security.

Telesat's long-standing presence in Ottawa, rooted since its formation in 1969, situates the company within a vibrant aerospace, defence, and security cluster that comprises over 330 companies and 10,000 professionals in the Canadian capital. The region also hosts Canada’s only NATO DIANA Test Centres, including the Area X.O complex operated by Invest Ottawa, where defence technologies are rapidly tested and validated.

As Canada strives to increase its defence spending to five percent of GDP by 2035, the ESCP-P contract serves as a tangible indicator of what such investments can achieve: developing sovereign capabilities, creating Canadian employment opportunities, and enhancing Arctic security—stemming from an Ottawa institution with decades of experience. Additionally, Invest Ottawa’s Defence Innovation Hub aims to support more companies in transitioning from early-stage innovations to large-scale contractual agreements like Telesat's recent accomplishment.