Canadian government’s satellite deal has Tories calling for Elon Musk involvement

A $2.14-billion federal loan for an Ottawa-based satellite operator has Canadian politicians arguing about whether American billionaire Elon Musk poses a national security risk.

The fight involves internet connectivity in remote regions as Canada tries to live up to its promise to connect every Canadian household to high-speed internet by 2030.

Telesat CEO Dan Goldberg said “there appear to be some misunderstandings” about the nature of his company’s deal with the government.

A week ago, the Liberal government announced the loan to Telesat, which is launching a constellation of low Earth orbit satellites that will be able to connect the most remote areas of the country to broadband internet.

Conservative MP Michael Barrett objected to the price tag, asking Musk in a social media post how much it would cost to provide his Starlink to every Canadian household that does not have high-speed access.

“Less than half that amount,” Musk responded, prompting Barrett to conclude: “That sounds like a common-sense solution for Canada to me.”

In an interview, Goldberg rejected the comparison because his company received a loan, not a grant.

Telesat will pay the government nine per cent interest. The Quebec government is also loaning $400 million. In exchange, Telesat will give up around a 12 per cent equity stake in the company to the two governments.

“No one asked Elon, ‘Do you want a $2-billion loan from the government of Canada at a nine per cent interest rate and give up 10 per cent of Starlink?'” he said. “I think there would have been a very different response.”

He noted that a portion of the loan will actually end up going to Musk’s SpaceX because Telesat uses the company to launch satellites.

A spokesperson for Innovation Canada said