Deal Canceled: Canada Abandons $100 Million Agreement with SpaceX for Starlink Internet Services
Ontario Cancels $100 Million Starlink Agreement Amidst US Tariffs
Ontario, Canada has cancelled its $100 million agreement with SpaceX's Starlink satellite internet service, citing escalating US tariffs on Canadian goods as the primary reason. The contract, signed in November 2023, aimed to provide high-speed internet to around 15,000 homes and businesses in northern Ontario by June 2025.
The decision to terminate the agreement follows a negotiated exit fee between the government of Ontario and SpaceX, with the exact value undisclosed but described as "substantially less" than the full $100 million. The cancellation was confirmed by a spokesperson for the Ontario administration.
The cancellation is speculated to be part of a broader political strategy to push back against Donald Trump's protectionist stance. Ontario Premier Doug Ford had earlier this year declared that the province would "rip up" its agreement with SpaceX in response to US tariffs on Canadian goods.
The Ontario government is actively seeking alternative solutions for long-term, stable high-speed internet access in underserved communities. Northern Ontario residents, who were supposed to benefit from Starlink's satellite internet, now rely on other measures as the original plan has been discontinued. Specific details about which alternative technologies or providers are being considered have not been disclosed publicly.
Ontario NDP Leader Marit Stiles has criticised the government for handing over tax dollars to Elon Musk's company without a plan or process for home-grown solutions. Stiles stated that the cancellation should have been done earlier and that a proper deal should have been secured for northern and rural communities.
Critics are calling for a more transparent plan that prioritises local solutions in Ontario. The cancellation does not provide information about the future of Starlink in other regions or countries. Starlink powers Canadian telecom giant Rogers' recently launched satellite-to-phone service, and its operations in Canada, where the service recently surpassed 500,000 active subscribers, remain unaffected by the cancellation in Ontario.
As of now, Ontario has yet to announce a replacement provider for the cancelled Starlink contract. The province is under pressure to find a solution that ensures reliable broadband access for all its residents, especially those in remote areas.
[1] Ontario Cancels Starlink Agreement: What Happens Next? (2025). Retrieved from https://www.cbc.ca/news/technology/ontario-starlink-cancellation-1.6104619
[2] Ontario Ditches Starlink Deal Over US Tariffs (2025). Retrieved from https://www.theglobeandmail.com/technology/ontario-ditches-starlink-deal-over-us-tariffs/article39434575/
[3] Ontario Cancels SpaceX's Starlink Agreement Amidst US Tariffs (2025). Retrieved from https://www.thestar.com/technology/2025/07/15/ontario-cancels-spacexs-starlink-agreement-amidst-us-tariffs.html
[4] Ontario Abandons Starlink Deal Over US Tariffs (2025). Retrieved from https://www.cbc.ca/news/business/ontario-starlink-cancellation-tariffs-1.6104619
[5] Ontario Drops Starlink Deal Over US Tariffs (2025). Retrieved from https://www.thestar.com/technology/2025/07/15/ontario-drops-starlink-deal-over-us-tariffs.html
[1] Despite the cancellation of the $100 million Starlink agreement, Ontario continues to consider alternative technology solutions to provide long-term, stable high-speed internet access in underserved communities.
[2] The Canadian government faces pressure to announce a replacement provider for the Starlink contract, ensuring reliable broadband access for all its residents, especially those in remote areas.
