Ontario Cancels $100M Starlink Contract, Refuses to Disclose Exit Fee

Ontario has officially cancelled its $100-million contract with Starlink, but the province won't reveal how much it will cost taxpayers to exit the deal. Energy and Mines Minister Stephen Lecce confirmed the cancellation, while Infrastructure Minister Kinga Surma announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario. Ontario Premier Doug Ford threatened to kill the deal in February and ultimately pulled it in March when US tariffs were imposed.

Ontario has officially terminated its $100 million contract with Starlink, but the province has refused to disclose the cost to taxpayers for ending the deal. The cancellation comes amidst escalating trade tensions between Canada and the United States.

Energy and Mines Minister Stephen Lecce confirmed the cancellation, but declined to answer questions about the termination fee to be paid to Elon Musk's SpaceX. Infrastructure Minister Kinga Surma had initially announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario.

The deal was intended to provide Starlink internet service to remote First Nations communities. However, the cancellation leaves these communities without a clear path forward for reliable internet access. The provincial government is now exploring alternative solutions, but options such as Xplore and Telesat Lightspeed network are still under discussion.

The decision to cancel the contract was driven by 25% U.S. tariffs on Canadian goods, introduced earlier this year under the Trump administration. Ontario Premier Doug Ford, who has been vocal about defending the province's economic interests, described the tariffs as an "economic attack" on Canadian businesses and workers.

While the exact cost of the cancellation fee has not been disclosed, government insiders have confirmed that Ontario paid "not zero" and that the sum was significantly less than the original $100 million price tag [2].

The cancellation of the Starlink deal highlights the ongoing challenges faced by northern Ontario communities in accessing reliable broadband services. The province is now actively seeking alternative solutions to bridge the digital divide in these underserved areas.

References:
[1] https://www.cbc.ca/news/canada/toronto/starlink-deal-void-ontario-taxpayer-cost-unclear-1.7597350
[2] https://driveteslacanada.ca/news/ontario-pays-undisclosed-fee-to-cancel-100-million-starlink-deal/