Market Chatter: Ontario Signs $100 Million Deal With Elon Musk's Starlink System
03:56 PM EST, 11/14/2024 (MT Newswires) -- Premier Doug Ford's government has signed a $100-million deal with Elon Musk's SpaceX to deliver high-speed internet to remote residents in rural and northern Ontario, The Canadian Press is reporting Thursday.
The new program called ONSAT -- which stands for Ontario Satellite -- will bring SpaceX's Starlink satellite internet system to 15,000 premises, said Infrastructure Minister Kinga Surma.
"These communities will gain access to high-speed satellite internet capable of supporting streaming video calls, online gaming and more activities that have become second nature to so many of us," Surma said. The service will be used to connect people in the hardest-to-reach areas of the province to the internet, she added.
According to Thursday's report, the system will go live next June with eligibility and registration starting in the spring. The province will cover equipment and installation costs, but not monthly fees. "It is an investment of close to $100 million," Surma said.
SpaceX won after a "robust and transparent and competitive and fair technical and financial evaluation of multiple qualified parties," said Michael Lindsay, CEO of Infrastructure Ontario.
Indigenous "engagement and participation" is part of the contract Infrastructure Ontario signed with SpaceX, he said.
"SpaceX is going to engage directly with Indigenous communities to ensure equal access to the program and to create socio-economic opportunities through employment contracting and training opportunities," Lindsay said.
Installation is relatively straightforward and fast, said Joel Cherkis, who runs the business operations for Starlink.