The Financial Post reports in its Thursday, Aug. 6, edition that MDA Space has added $474-million to its contract with Telesat to build more cutting-edge broadband satellites that will in part support the Canadian Armed Forces operating in the Arctic.
The Post's Yvonne Lau writes that Telesat is expanding its Telesat Lightspeed low-earth orbit (LEO) network by adding 67 satellites, raising its total to 225. MDA will manufacture 27 of the new satellites.
In 2023, MDA and Telesat signed a $2.1-billion contract for the delivery of 198 satellites, which was the largest-ever contract in MDA's history, said Beacon Securities analyst Russell Stanley in a Tuesday note.
"Today"s news expands on that," he said.
The federal government also announced on Tuesday that it has tapped MDA to serve as the primary contractor for a new satellite constellation for military and government communications -- namely, an ultra-high frequency and X-band network in medium earth orbit (MEO) -- with Telesat acting as MDA's subcontractor. The contract terms will be disclosed once finalized.
Ottawa previously mentioned the project could cost at least $5-billion, presenting "considerable upside" for MDA's participation, said Mr. Stanley.
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