Particle.news

Download on the App Store

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

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.