Key Takeaways
- Eutelsat, a company owned by the French and U.K. governments, is proposing a $250-million plan to provide secure satellite broadband coverage to the Canadian military in the Arctic.
- The proposal aims to deepen the partnership between Eutelsat and the Canadian military, as Canada seeks to diversify its defence contracts away from U.S. suppliers.
- Eutelsat’s pitch emphasizes the importance of having a reliable defence partner and control over secure systems and data.
- The company’s proposal is seen as an alternative to Elon Musk’s Starlink, which has faced criticism and controversy in recent years.
- The Canadian government is considering the proposal, with Prime Minister Mark Carney having discussed it with French President Emmanuel Macron at the G7 summit last year.
Introduction to Eutelsat’s Proposal
A company largely owned by the French and U.K. governments, Eutelsat, is pitching a roughly $250-million plan to provide the Canadian military with secure satellite broadband coverage in the Arctic. This proposal is part of Eutelsat’s efforts to deepen its partnership with the Canadian military, as Canada seeks to diversify its defence contracts away from suppliers in the United States. Eutelsat already provides some services to the Canadian military, but this new proposal aims to expand its role in supporting the country’s defence needs.
Background on the Proposal
The proposal was apparently raised by French President Emmanuel Macron with Prime Minister Mark Carney on the sidelines of last year’s G7 summit in Alberta. According to Eutelsat and French defence officials, the prime minister’s first question was how the proposal would affect Telesat Corporation, a former Canadian Crown corporation that was privatized in the 1990s. Telesat is currently developing its Lightspeed system, a Low Earth Orbit (LEO) constellation of satellites for high-speed broadband. The Liberal government has also established a strategic partnership with Telesat and MDA Space to develop the Canadian Armed Forces’ military satellite communications (MILSATCOM) capabilities.
Eutelsat’s Pitch
A Eutelsat official emphasized that the company already has its own satellite network in place and running, along with Canadian partners, and has been providing support to the Canadian military deployed in Latvia. David van Dyke, the general manager for Canada at Eutelsat, explained that the company can provide Canada with a "sovereign capacity capability" where Canada would own all of Eutelsat’s capacity in the Far North or wherever it is required. This would give Canada control over the secure systems and data, and ensure that it is not under the control of a single individual who could decide to disconnect the service for political or other reasons.
Concerns about Starlink
Eutelsat’s pitch is also seen as an alternative to Elon Musk’s Starlink, which has faced criticism and controversy in recent years. Starlink has hundreds of thousands of customers in Canada and has been a major source of broadband internet access in the Far North. However, Musk’s decision to switch off Starlink in Ukraine during a pivotal push by the Eastern European country to retake territory from Russia in late September 2022 has raised concerns about the reliability of the service. At least 100 terminals went dark, according to sources who spoke to the Reuters News Agency. This incident has led to a souring of enthusiasm for Starlink, with Ontario officially cancelling a $100-million contract with the company last summer.
Eutelsat’s Experience and Capabilities
Eutelsat has significant experience in providing secure communications, including in the aviation field, connecting to both manned aircraft and drones, as well as airborne intelligence, surveillance and reconnaissance aircraft. The company’s chief financial officer, Christophe Caudrelier, has noted that Eutelsat has had significant contracts with the U.S. government, including the Pentagon. However, since the change in the U.S. presidential administration, the company has seen at least one large U.S. Department of Defence contract not renewed. The French government is the largest shareholder in Eutelsat, with Indian multinational Bharti Space Ltd. and the U.K. government also being major shareholders.
Conclusion and Next Steps
Eutelsat’s proposal to provide secure satellite broadband coverage to the Canadian military in the Arctic is seen as a significant opportunity for the company to deepen its partnership with Canada and support the country’s defence needs. The proposal emphasizes the importance of having a reliable defence partner and control over secure systems and data. As the Canadian government considers the proposal, it will need to weigh the benefits of partnering with Eutelsat against the potential risks and challenges associated with relying on a foreign-owned company for its defence needs. Ultimately, the decision will depend on the government’s assessment of Eutelsat’s capabilities and the company’s ability to meet Canada’s defence requirements.
