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Canada awards a C$2.3 billion Arctic satellite communications contract; MDA Space builds the satellites
The Defence Investment Agency gave Telesat an initial contract of about C$2.3 billion for military Ka-band capacity on Lightspeed, with 69 more satellites to be built by MDA in Montréal; MDA's own release values its follow-on Telesat order at C$474 million.
On August 4, 2026 the Government of Canada's Defence Investment Agency awarded Telesat LEO ULC an initial contract "valued at approximately $2.3 billion", with two option periods of about C$214 million and C$218 million, for the military Ka-band component of the Enhanced Satellite Communications Project – Polar. Under the agreement Telesat will "expand its LEO constellation by 69 satellites, bringing the total number of satellites from 156 already in production to 225," and the release says the satellites will be built by MDA Space at its high-volume manufacturing facility in Montréal. The same project includes a secure UHF and X-band constellation in medium Earth orbit with MDA as prime contractor. The government cites the BUILD component of its Defence Industrial Strategy and a Strategic Partner model that began with a C$2.92 million engineering contract in December 2025 [1].
MDA's release the same day is narrower: a C$474 million increase to its existing Telesat contract for 27 more satellites, taking its Lightspeed build from 198 to 225 [2]. The two counts start from different baselines and should not be added together.
For a U.S. reader this is the kind of document our July brief said to wait for: a named program, a named purchasing authority, a dollar figure and a named Canadian supplier. What it is not yet is MDA backlog in MDA's own accounts; the second-quarter report, scheduled for August 7, will show how much of it has been booked [3].
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1
The Government of Canada awards a military communications contract to support Arctic sovereignty and national security
Ottawa; 'initial contract valued at approximately $2.3 billion to Telesat LEO ULC' with 'two option periods of approximately $214 million and $218 million'; Enhanced Satellite Communications Project – Polar (ESCP-P); 'military Ka-band satellite communications component'; Telesat to 'expand its LEO constellation by 69 satellites, bringing the total number of satellites from 156 already in production to 225'; satellites 'built by MDA Space at its state-of-the-art, high-volume satellite manufacturing facility in Montréal'; 'secure Ultra-High Frequency (UHF) and X-band constellation in Medium Earth Orbit (MEO)' with MDA Space as prime contractor; ITB Policy; 'create or maintain 2,600 jobs annually' and 'contribute $335 million annually' to GDP over about seven years; December 9, 2025 strategic partnership and $2.92-million engineering contract; Strategic Partner model; BUILD component of the Defence Industrial Strategy; quotes from government officials.
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2
MDA Space awarded $474 million to expand the Telesat Lightspeed LEO constellation
Toronto; C$474M increase to the previously announced contract; 27 additional MDA AURORA satellites, from 198 to 225; the chief executive on Arctic military communications; delivery timeline not stated.
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3
News releases
Lists the July 16, 2026 notice 'MDA Space to hold its second quarter 2026 earnings conference call on August 7, 2026' and the releases of July 8 (CLS offer; bought deal), July 14 (closing), July 23 and August 5 (notes), August 4 (Telesat), August 6 (Canadarm3), August 16 (Globalstar) and September 21 (NCIB).
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