TORONTO — The Ontario government killed its $100-million deal with Elon Musk’s Starlink, leaving rural and remote communities in northern Ontario in the dark about their future internet access.
The decision, part of a broader political strategy by Ontario Premier Doug Ford in response to American tariffs, alarms those who rely on Starlink for critical services like healthcare, business operations and emergency services.
The now-cancelled Ontario Satellite Internet program, launched in November, was supposed to bring high-speed internet to 15,000 eligible homes and businesses in northern Ontario using Starlink’s low-Earth orbit satellite technology starting in June 2025. The provincial government offered to cover equipment and installation costs for eligible customers, with residential plans for $140 per month and business plans for $185. It was part of Ontario’s broader plan to address connectivity issues in remote communities that have been struggling with slow, unreliable internet for years. The cancellation won’t affect anyone who already has the Starlink service.
Musk is the CEO of SpaceX which operates Starlink and has been a key figure in the trade disputes, due to his close relationship with the U.S. President Donald Trump. Ford has also said the Starlink contract is being cancelled permanently even if the tariffs are lifted.
Jesse Fiddler, a director at Kuhkenah (K-Net), an information and communication technology service provider owned and operated by Sandy Lake First Nation, says without internet services, communication gaps can have serious consequences. People can’t easily get help in times of need. "We don't have ambulatory services in the north either. So, a lot of times you're stuck on calling a local nursing station," he said.
Starlink's launch in Canada in 2020 sparked a lot of excitement; it gave remote communities access to services like telemedicine, online education and business opportunities, which many urban Ontarians take for granted.
"Whether it was in the house, at camp or in vehicles, it provided internet access where there was none before," said Ontario MPP Sol Mamakwa.
Pikangikum First Nation in northwestern Ontario was the first Indigenous community in Canada to get the service. By 2022, satellite internet was rolling out in the North, including Yellowknife, Rankin Inlet and Iqaluit.
Starlink currently operates over 7,000 satellites in low-Earth orbit, serving around five million subscribers. Canada is its largest market outside the U.S.
‘Cycle of dependency’
Fiddler said building infrastructure in remote areas is inherently difficult due to high costs and logistical challenges.
"There’s limited access to broadband through fibre optic cable. We need to upgrade systems and find alternative solutions to avoid complete reliance on companies like Starlink."
The provincial and federal governments have programs to build telecommunications infrastructure, including fiber optic lines, but it’s been a challenge to reach remote areas. Initiatives like the Ontario Accelerated High-Speed Internet Program had issues because bids for remote areas were too low to attract major companies.
This is why satellite solutions like Starlink initially seemed viable as a stopgap, but, according to Fiddler, not a long-term solution.
“If we keep relying on companies like Starlink we’ll trap ourselves in a cycle of dependency, constantly funding their satellite infrastructure without seeing any benefits for our economy,” he said.
The cancellation has also raised questions about Canadian alternatives to Starlink, especially for building reliable and sustainable infrastructure. Fiddler says fibre optic networks should be the long-term solution for rural internet access, because they are more reliable and scalable than satellite service. “What communities really need is fibre optic broadband, which is the gold standard for internet service, but building that infrastructure in remote areas is expensive.”
Experts note Starlink is not the only satellite provider. Canadian companies like Telesat, which is developing its Lightspeed satellite network, have alternative satellite solutions that should be rolling out by 2027. Telesat’s business is to provide wholesale services for internet providers, and doesn't follow the direct-to-consumer model like Starlink.
Xplore, another Canadian satellite provider, offers geosynchronous satellite internet which orbits the Earth at the same rate as the planet’s rotation — but its services are limited because of the distance the signal travels. “Geosynchronous satellites are far away, causing delays in signal transmission,” which can make it not ideal for real time applications like online education or telemedicine.
There is a push to build local infrastructure that is fast and reliable.
Fiddler said partnering with First Nations communities to establish locally-owned internet service providers (ISPs) could empower these communities and create a more sustainable model for internet access.
An example of this is the Dibaajimowin Project, a partnership between Bell Canada and Grand Council Treaty 3 to bring high-speed internet to communities in northwestern Ontario. The project is progressing and will connect 17 First Nations and 13 non-Indigenous communities by the end of 2025.
"First Nations can own their own infrastructure, so it becomes almost like public infrastructure,” he said.
“We should be investing in it locally and within our home borders and within Canadian companies and Canadian infrastructure owned and operated by businesses that provide jobs and contribute to our economy,”
Mamakwa said the defunct Starlink deal underlines the need to diversify infrastructure options.
"We can't rely solely on Starlink," he said, pointing out that other, faster options not owned by Elon Musk already exist.
"I think this is really telling the government that we need to take action now and invest in Canadian, locally owned and managed infrastructure," he said.
Canada’s National Observer / Local Journalism Initiative
