- Telesat LEO ULC received a $2.3 billion contract from Canada’s Defence Investment Agency to deliver the first phase of the Enhanced Satellite Communications Project–Polar.
- The award expands the Telesat Lightspeed low Earth orbit constellation by 69 satellites, increasing the planned fleet to 225 satellites built by MDA Space.
- The project is expected to enhance Canadian Armed Forces communications in the Arctic while supporting approximately 2,600 jobs annually and contributing $335 million annually to Canada’s GDP.
Telesat LEO ULC has secured an initial $2.3 billion contract from Canada’s Defence Investment Agency, or DIA, to deliver the first phase of the Enhanced Satellite Communications Project-Polar, or ESCP-P.
The award also includes two option periods valued at approximately $214 million and $218 million, bringing the program’s potential value to more than $2.7 billion.
What Will Telesat Deliver?
Under the contract, Telesat will provide the military Ka-band satellite communications component of ESCP-P using its Lightspeed low Earth orbit constellation. The capability would provide secure, resilient and reliable communications to support a range of Canadian Armed Forces missions, including NORAD operations, continental defense, Arctic domain awareness and search-and-rescue missions, the Government of Canada said Tuesday.
“Telesat is honored to support the Government of Canada in strengthening Northern and Arctic sovereignty,” said Dan Goldberg, president and CEO of Telesat. “This contract ensures the Canadian Armed Forces will have access to secure, resilient and sovereign connectivity years earlier than originally planned, at a great value for money, and with a scalable architecture designed to meet future global operational requirements and support interoperability with Canada’s allies and partners.”
The agreement also authorizes Telesat to expand its Lightspeed network by 69 additional satellites, increasing the planned constellation from 156 satellites currently in production to 225.
How Does MDA Space Support the Program?
MDA Space will serve as the prime contractor, overseeing the end-to-end mission delivery of a secure ultra-high-frequency and X-band constellation in medium Earth orbit, with Telesat participating as a subcontractor.
The contract is the first major procurement resulting from the strategic partnership established in December 2025 between the Government of Canada, Telesat and MDA Space.
Mike Greenley, CEO of MDA Space, said the contract reflects the Canadian government’s commitment to investing in sovereign satellite communications and leveraging the country’s domestic space industrial base to strengthen Arctic defense capabilities. He also noted that the procurement moved rapidly from the options analysis and program definition phase to development and contract award within a matter of months.
What Did Government Leaders Say?
National Defence Minister David McGuinty said the investment will provide Canadian Armed Forces personnel with next-generation secure satellite communications while accelerating delivery of capabilities that support Canada’s sovereignty and national security.
“The contract awarded today as part of the ESCP-P initiative will provide enhanced situational awareness and a strong presence in the North while empowering Canada to respond to evolving threats amid a shifting geopolitical environment,” said Stephen Fuhr, Canada’s secretary of state for defense procurement.
What Is the Broader Economic Impact?
Through Canada’s Industrial and Technological Benefits Policy, the project is expected to support or maintain approximately 2,600 jobs annually and contribute roughly $335 million each year to Canada’s gross domestic product over an estimated seven-year period. The initiative is also expected to generate business opportunities for Canadian small and medium-sized enterprises participating in the country’s space and defense supply chains.
Doug Guzman, CEO of the Defence Investment Agency, said the project exemplifies the “Build” pillar of Canada’s “Build-Partner-Buy” procurement strategy and is expected to strengthen the country’s sovereign industrial base.
“This investment will help drive innovation, support high-value jobs, and build the resilient industrial capacity needed to meet Canada’s defense and security priorities for years to come,” he added.
