The Canadian province of Ontario has officially cancelled its $100 million USD agreement with SpaceX to bring Starlink satellite internet to 15,000 homes in northern parts of the region, according to a report from Global News.
Originally signed in November 2023, the deal was intended to bridge the digital divide in remote communities by leveraging Elon Musk’s Starlink satellite constellation. However, the contract has now been scrapped following a negotiated exit fee between the government of Ontario and SpaceX. The exact value of the fee remains undisclosed, but sources say it was “substantially less” than the full $100 million.
“Our government has cancelled the Starlink contract,” a spokesperson for the Ontario administration confirmed in an email. “We are seeking an alternate solution as we continue our efforts to secure long term, stable high-speed internet access across the province.”
The decision follows Premier Doug Ford’s public declaration earlier this year that Ontario would “rip up” its agreement with SpaceX in response to U.S. tariffs on Canadian goods — a move speculated to be part of a broader political strategy to push back against Donald Trump’s protectionist stance.
While the cancellation leaves thousands of northern households without the high-speed internet they were promised, it also preserves Ontario’s relationship with Starlink. By negotiating a termination instead of legislating it through a proposed “Starlink Cancellation Act,” the government avoided the risk of losing access to Starlink services currently used by essential inrastructure like healthcare facilities.
The amicable end to the contract ensures that Starlink’s broader operations in Canada — where the service recently surpassed 500,000 active subscribers — remain unaffected. Starlink also powers Canadian telecom giant Rogers’ recently launched satellite-to-phone service, underscoring its critical role in the country’s connectivity landscape.
Ontario has yet to announce a replacement provider, and critics are calling for a more transparent plan that prioritizes local solutions.
“This should have been done a long time ago and the premier should have secured a proper deal for those in Northern and rural communities who still don’t have the reliable internet that they were promised by this government,” Ontario NDP Leader Marit Stiles said in a statement.
“Handing over hard-earned tax dollars to Elon Musk’s company was never the right approach. Months have passed and we still don’t have a plan or even a process that’s calling for home-grown solutions.”
