In November 2024, Ontario, Canada, signed an agreement with SpaceX to provide satellite internet to approximately 15,000 homes in the northern and rural parts of the province through the Ontario Satellite Internet (ONSAT) program. The $100 million deal was initially seen as a way to establish a positive relationship with the incoming U.S. administration, given Elon Musk’s close ties to Donald Trump.
However, the relationship between Ontario and SpaceX soured as trade tensions escalated. Premier Doug Ford announced the cancellation of the contract in early 2025 after the U.S. government imposed tariffs on Canadian goods. Ford defended the decision by stating that he would not award contracts to entities that supported economic attacks on Canada. While initially suggesting that the province might not have to pay anything to terminate the deal, a settlement was eventually reached with SpaceX.
The exact amount of the payout from Ontario to SpaceX remains confidential, with the provincial government only disclosing that it was “significantly less than the contract value.” This secrecy has drawn criticism from opposition leaders, who argue that taxpayers deserve to know the cost of the Premier’s decision to end the infrastructure deal as a response to U.S. trade policies.
The cancellation of the Starlink contract has left many remote and Indigenous communities in a digital limbo. These households were expecting high-speed internet access by June 2025 but are now forced to wait while the province seeks a new partner for the project. Critics have suggested that the government should have initially partnered with a Canadian firm like Telesat to avoid the political volatility associated with foreign contracts.
In the aftermath of the cancelled agreement, Ontario faces the challenge of finding a new solution to provide internet connectivity to these underserved communities. The fallout serves as a reminder of the complexities and implications of international business relationships, particularly in the realm of technology and infrastructure development.