Canada’s telecommunications industry is currently embroiled in a heated dispute as Bell Canada attempts to prevent Elon Musk’s Starlink from accessing potential subsidies for providing internet services in remote areas.
According to a report by the Financial Times (FT), Bell Canada and its subsidiary Northwestel are actively lobbying against the potential subsidies that Starlink could receive. The subsidies are intended to support Starlink’s efforts to provide internet access to the country’s northern regions, including the Arctic. Bell argues that Starlink’s flat pricing model indicates that it does not require financial support to operate in these remote areas.
The final decision on whether Starlink will receive subsidies will be made by the Canadian Radio-television and Telecommunications Commission (CRTC). In January, the CRTC expressed that providing subsidies to Starlink would enhance the reliability and affordability of internet services for residents in the Far North.
Starlink’s Response
SpaceX, the parent company of Starlink, has responded to Bell’s opposition by highlighting the detrimental impact that blocking subsidies would have on competition and the availability of internet services in isolated communities, including First Nations groups.
Despite Bell and Rogers dominating Canada’s telecommunications market, Starlink has been making significant strides in expanding its presence in remote regions. Since receiving official approval to operate in October 2022, Starlink has amassed a customer base of 400,000 active users.
Challenges Faced by Musk’s Ventures in Canada
The clash over subsidies is just one example of the broader resistance faced by Elon Musk’s ventures in Canada. This resistance appears to be fueled by Musk’s association with the Trump administration. In addition to Bell’s efforts to block Starlink subsidies, Ontario recently canceled a $100 million contract with Starlink, and Quebec has indicated that it will not be renewing its subsidy program for the company.
Furthermore, Tesla, another company founded by Musk, has faced challenges in Canada. The government revoked EV subsidies for Tesla, with Transport Minister Chrystia Freeland leading the charge against providing public funds to what was described as an “unaccountable imperialist” like Elon Musk, according to Geoff White of the Public Interest Advocacy Center.