Canadian Space Tech Firm MDA Gets Deal to Build 198 Satellites for Telesat

Satellite operator Telesat has awarded space technology company MDA a C$2.1 billion (nearly Rs 1,295 crore) contract to build 198 satellites for its low-Earth orbit program.

The deal, announced Friday, sparked a more than 45 percent rally in Telesat Canada and U.S. shares, putting them on track for their best day ever. Meanwhile, MDA is up about 29%.

Telesat said it had earmarked $3.5 billion (nearly Rs. 290.2 crore) as capital expenditure for the Lightspeed project, and the MDA deal helped it save $2 billion (nearly Rs. 165.8 crore).

Launches are scheduled to begin in mid-2026, with polar and global service planned for late 2027.

By using MDA’s beamforming array antennas and integrated regenerative processors, the redesigned Telesat Lightspeed network will increase network efficiency and enhance the flexibility to concentrate and deliver capacity to subscribers, the company said in a statement.

The technology will also allow each satellite to be slightly smaller than what Telesat had previously considered.

Telesat’s Lightspeed network is designed to meet the connectivity needs of business and government users, providing highly secure, resilient, low-latency broadband connections anywhere in the world.

The company launched its first LEO 3 demonstration satellite on Rocket Lab’s Electron rocket in July.

Telesat also reported its second-quarter results earlier Friday. The company posted a profit of C$519.9 million (nearly Rs. 32.1 crore), compared with a loss of C$4.38 million (nearly Rs. 270 crore) a year earlier. Revenue fell 4%.

© Thomson Reuters 2023