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Ontario Terminates Starlink Deal, Pays Break Fee to Pursue New Northern Broadband Solutions

Government officials have launched a procurement process to replace satellite service for thousands of northern households

Elon Musk reacts during a press conference with U.S. President Donald Trump (not pictured), at the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Nathan Howard/File Photo
Ontario Premier Doug Ford speaks at a press conference in Toronto on Thursday, April 17, 2025.
Stephen Lecce, Minister of Energy and Mines of Ontario  speaks at a press conference as Ontario Premier Doug Ford looks on, in Toronto on Thursday, April 17, 2025. THE CANADIAN PRESS/Arlyn McAdorey
Elon Musk speaks at a town hall Sunday, March 30, 2025, in Green Bay, Wisconsin. THE CANADIAN PRESS/AP-Jeffrey Phelps

Overview

  • A spokesperson for the Ministry of Energy and Mines confirmed that the $100 million contract with SpaceX has been formally terminated.
  • Negotiations settled on a break fee described by a senior source as substantially lower than the original $100 million valuation.
  • The termination leaves about 15,000 homes in northern Ontario without the previously promised high-speed satellite internet service.
  • Officials have opened a formal procurement process to secure alternative providers for reliable high-speed internet in rural and Indigenous communities.
  • The government considered introducing a Starlink Cancellation Act to shield Ontario against potential litigation before finalizing the negotiated settlement.