The Canadian province of Ontario has recently made headlines with its decision to cancel a $100 million USD agreement with SpaceX to bring Starlink satellite internet to 15,000 homes in northern regions. This move comes after the contract, signed in November 2023, was scrapped following negotiations between the government of Ontario and SpaceX. While the exact exit fee remains undisclosed, sources suggest it was significantly less than the full $100 million.
The cancellation of the Starlink contract was confirmed by a spokesperson for the Ontario administration, who stated that the government is now seeking an alternate solution to secure long-term, stable high-speed internet access across the province. This decision follows Premier Doug Ford’s earlier declaration that Ontario would terminate the agreement with SpaceX in response to U.S. tariffs on Canadian goods, seen as a strategic move to counter Donald Trump’s protectionist stance.
Despite leaving thousands of households without the promised high-speed internet, the cancellation also aimed to preserve Ontario’s relationship with Starlink. By negotiating a termination rather than legislating it through a proposed “Starlink Cancellation Act,” the government avoided the risk of losing access to Starlink services essential for infrastructure like healthcare facilities.
The amicable resolution of the contract ensures that Starlink’s broader operations in Canada, which recently surpassed 500,000 active subscribers, remain unaffected. Starlink also powers Rogers’ satellite-to-phone service, highlighting its critical role in the country’s connectivity landscape.
While Ontario has yet to announce a replacement provider, critics are urging for a more transparent plan that prioritizes local solutions. Ontario NDP Leader Marit Stiles expressed disappointment in the government’s handling of the situation, emphasizing the need for reliable internet access in Northern and rural communities and advocating for home-grown solutions instead of investing in Elon Musk’s company.
As the province navigates through this transition in internet service providers, Ontario residents await further updates on how the government plans to address the digital divide and ensure all communities have access to high-speed internet.