Ontario's contract with Starlink has been canceled, even if US tariffs are abolished


Finish for Stardlink In Ontario, according to Canadian Prime Minister Doug Ford. Said Ford At a press conference That due to US tariffs imposed against Canada, Ontario has canceled A $ 100 million deal with Elon Musk's Satellite company Starlink that Signed in November.

“We are looking at Ontario's contract with Starlink. It's done. That's gone. We will not award agreements to people who enable and encourage economic attacks on our province and our country, “Ford said.

It is not the first time the agreement has been said to have been canceled: in early February, when tariffs against Canada were inevitable, he said it would be canceled. But that was apparently put on hold when tariffs against Canada and Mexico were postponed by President Donald Trump's administration.

At that time, Musk, CEO of SpaceX, the company that owns Starklink, responded via X, “”Oh well.

Starlink and SpaceX did not comment publicly on the second news of cancellation and is -SpaceX's request was not returned immediately.

The agreement was supposed to deliver high -speed internet services to rural residents and citizens in northern Ontario. He's Starlink estimates that there are about 533,000 customers in CanadaAnd it is not clear what will happen to the residents of Ontario who are already relying on the Starklink Internet service. Satellite companies with business in Canada include Telesta, which is building a service called Lightspeed, but is not expected to begin for several years.

Unclear what will happen to customers

Micahi Walter-OsgingPresident of the company that reconciles the universe, Kaelus partners and associate of Space Index Fund S-networkHe said the cancellation creates the opportunity for other internet providers and satellite companies based in Canada or regions, including Europe.

But, Walter-Rang added, it is unlikely that Ontario's move will put the entire Business at Starklink in danger.

“Business is unlikely to take a significant hit for now,” he said. “In many places, Starklink is simply the best available option, even if customers do not like Musk or Trump's administration. Recent events create incentives for governments and other clients to look for long -term alternatives. “

Walter Tranja said alternatives such as Telesta are currently relying on satellites in higher orbits that provide a lower quality internet service. For Lightspeed, “it will take some time away from enough satellites to be operational to provide solid service,” he said.

Despite the Ontario ban, some clients can still do business with Starklink.

“Unless the Canadian government has banned Starlink at national level and does not take away its authority to transmit signals over Canada, a client who buys directly from Starklink should be influenced,” Walter Rang said. “However, if the Canadian resident gains access through a subsidized government program used by Starklink as a service provider, they could be transferred to a different option or maybe nothing at all.”





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