Federal telecommunications company Bell advocates for the exclusion of Starlink from government-funded internet subsidies in Northern Canada.
In a bid to develop domestic alternatives to foreign satellite internet providers, Ottawa has invested over $2 billion in Canadian satellite operator Telesat. However, the entry of SpaceX's Starlink into the Canadian market is not without controversy.
SpaceX's Starlink, which offers high-speed internet via low-Earth orbit satellites, has become a popular option in rural and remote areas of Canada, particularly in communities without fibre-optic networks. As of June 2024, Starlink had over 400,000 active subscribers in Canada.
However, Bell Canada and its subsidiary Northwestel are lobbying against Starlink to prevent it from accessing a Canadian subsidy program aimed at expanding internet access in remote northern regions. Their opposition is motivated by concerns over competition from Starlink, which many northern communities view as a vital alternative for reliable broadband.
Bell argues that Starlink's flat-rate pricing structure demonstrates its ability to operate sustainably without additional financial assistance in the Yukon, Northwest Territories, and Nunavut. However, SpaceX disagrees with Bell's position, stating that excluding Starlink from eligibility would limit consumer choice and potentially increase costs for residents in remote regions.
The Canadian Radio-television and Telecommunications Commission (CRTC) opened a public consultation on the subsidy program earlier this year and will make a final decision based on the submissions received. The CRTC has acknowledged that subsidies could help make internet services "more reliable and affordable" in the Far North, where the digital divide remains a persistent issue.
Quebec initially signed a $130 million agreement with Starlink in 2022 but does not plan to renew its subsidy program when it expires in June. Quebec recently signed a new deal with Starlink to provide internet to remote courthouses in the province, stating there are no viable alternatives.
The federal government has entered into two contracts with SpaceX, one for $2.26 million with Shared Services Canada and another for $414,000 with the Innovation, Science and Economic Development agency. However, Ontario has cancelled a previously announced $100 million Starlink deal.
The resistance from Bell and Northwestel has contributed to delaying or blocking Starlink's participation in government funding initiatives intended to improve connectivity in underserved areas. This battle for market share in Canada's remote regions is a testament to the importance of reliable broadband and the competition it sparks in the telecommunications industry.
In this competitive landscape of the telecommunications industry, SpaceX's Starlink, known for offering high-speed internet via low-Earth orbit satellites, serves as a crucial alternative for reliable broadband in remote and rural Canadian communities lacking fibre-optic networks. The Canadian Radio-television and Telecommunications Commission (CRTC) is currently considering the subsidy program's eligibility for Starlink, acknowledging its potential to make internet services "more reliable and affordable" in remote regions where the digital divide persists.
