Ontario has terminated its $100 million agreement with Starlink, without disclosing the financial implications of exiting the contract. Energy and Mines Minister Stephen Lecce evaded questions regarding the termination fee owed to Elon Musk’s SpaceX during a recent press briefing. Minister Lecce confirmed the contract cancellation and expressed the province’s commitment to exploring alternative solutions to connect Ontario residents.
Last year, Infrastructure Minister Kinga Surma unveiled the deal aimed at providing high-speed internet to 15,000 individuals in rural and northern Ontario. The agreement, scheduled to launch in June, would have covered hardware and installation expenses but not ongoing monthly charges. Additionally, it proposed offering Starlink access to remote First Nations communities following a successful trial in Pikangikum First Nation in 2020.
SpaceX secured the contract following a rigorous evaluation process involving various qualified entities, as stated by Michael Lindsay, the former CEO of Infrastructure Ontario. Ontario Premier Doug Ford had threatened to annul the deal if U.S. tariffs on Canadian products were imposed. The contract was officially terminated in March after President Donald Trump proceeded with the tariffs, with Ford emphasizing that contracts would not be awarded to entities supporting economic attacks on the province and the country.
The dissolution of the Starlink deal was part of Ontario’s retaliatory actions against the U.S. tariffs. Ford implemented several measures, including removing American alcohol from LCBO stores and enforcing a ban on U.S. companies bidding on provincial procurement contracts. Moreover, U.S. firms were prohibited from participating in projects under the province’s substantial infrastructure initiative.
“We are asserting Canada’s interests,” Minister Lecce affirmed. Opposition Leader Marit Stiles criticized the delay in securing an internet solution for northern and rural Ontario, emphasizing the need for a local approach rather than relying on Elon Musk’s company. Stiles urged the premier to outline a strategy for fulfilling the connectivity promise to Ontarians.
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