Telesat secures funding for Lightspeed satellite constellation aiming for 2027 global service

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By Sky Industry News

Sep 16, 2024

Telesat now has all financing sources in place to fund its global Lightspeed Ka-band Low Earth Orbit (LEO) satellite constellation. Management tells Runway Girl Network that the Canadian satellite operator aims to begin satellite launches in “mid-2026” in support of a 2027 go-live date for global services, including inflight connectivity.

Funding agreements with the Government of Canada and the Government of Quebec have been completed to cover the Lightspeed network — including the LEO satellites and launch vehicles needed to deploy them; an integrated terrestrial network of landing stations and worldwide points of presence; and the business and operational support systems for the network.

“As previously disclosed, the Government of Canada loan is for C$2.14 billion and will carry a floating interest rate that is 4.75% above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity,” says Telesat in a statement.

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“The Government of Quebec loan is for C$400 million,” it adds, “and has terms that largely mirror the Government of Canada loan but with warrants for 1.87%, in proportion to the smaller loan amount.” The borrower under each loan, Telesat LEO Inc. (Telesat LEO), is a subsidiary of Telesat.

MDA is a prime contractor on the program and will build 198 advanced satellites for the Lightspeed LEO network. Supporting the network with essential software and services is Ottawa-based Calian, which will design, develop, deliver, and deploy the Element Management System (EMS) as well as provide lifecycle maintenance and support.

Stephen Hampton, who serves as senior director, government relations and strategic accounts at Telesat tells RGN that Calian has already started working on the EMS, with final deliverables due in 2026.

Satellite launches, he confirms, “will begin in mid-2026” and “MDA has contracted over 90% of their supply chain for the Telesat Lightspeed program.”

Asked by RGN if Telesat is putting a timeline on when Lightspeed aero service will reasonably be available, Hampton said: “Full global service with guaranteed SLAs will begin in late 2027; however customer beta testing will begin prior.”

Several inflight connectivity stakeholders remain very excited about the prospect of Lightspeed LEO-powered IFC, either as an augment to geostationary satellite-based IFC or offered in standalone form.

For example, operators carrying ThinKom Solutions’ popular multi-orbit capable VICTS hardware for Ka-band GEO connectivity service could augment their service with Lightspeed or potentially move wholesale to a Lightspeed-powered IFC solution in the future (providing the airline owner strikes a deal with the satellite operator for the service portion and executes on an overnight modem change). No changes will need to be made outside the aircraft.