Ontario Scraps $100 Million Starlink Deal: A Response to Trump or Local Interest Protection?

Ontario Cancels Starlink Contract: Escalation in Canada-US Trade War


A series of Starlink satellites in the night sky.
A series of Starlink satellites in the night sky.
Starlink Satellites” — Source: Pixabay. License: Free to use.

The Canadian government of Ontario has canceled a CAD 100 million contract with Starlink for satellite internet services, a move that came as an escalation in response to trade tariffs imposed by US President Donald Trump. This cancellation has raised widespread concerns about the availability of high-speed internet for remote communities in Northern Ontario, which were relying on this contract to connect 15,000 homes and businesses.



Details of the Canceled Contract and Ontario Government's Stance


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An image showing a cardboard box containing office supplies, with the word 'Termination' written on it.
Termination” — Source: Pixabay. License: Free to use.

The contract was signed last November (2024) and was scheduled to begin in June 2025, covering equipment and installation costs. According to Premier Doug Ford's statements, Ontario will not deal with any entity "intent on destroying our economy," affirming that the government will ban American companies from participating in provincial government procurement contracts.



Searching for Local Alternatives and Opposition Statements


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An image of a large group of doors, symbolizing multiple options and opportunities.
Doors” — Source: Pixabay. License: Free to use.

Government sources revealed that terminating the contract required a cancellation fee, the exact value of which was not disclosed, but it is significantly less than the original contract value of CAD 100 million. Ontario is currently working on finding alternative solutions to ensure stable and long-term high-speed internet access throughout the province, prioritizing Canadian infrastructure. Opposition leaders, such as Sol Mamakwa (Ontario NDP MPP) and Marit Stiles (Official Opposition Leader), have called for homegrown solutions, emphasizing that internet has become an essential service.



Elon Musk's Response and Escalation of Canadian Measures


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An image of a wind farm, where wind turbines symbolize clean and powerful energy alternatives.
Wind Turbines” — Source: Pixabay. License: Free to use.

Elon Musk's response, founder of Starlink, to the contract cancellation was a concise statement on social media: "Ok." It is worth noting that Musk's support for the former US President and his controversial statements about Canada were among the factors that led to escalating tensions.




An image showing rows of servers inside a data center.
An image showing rows of servers inside a data center.
Data Center” — Source: Pixabay. License: Free to use.

The Canadian response was not limited to the Starlink contract cancellation; other retaliatory measures included withdrawing American alcoholic beverages from stores and banning American companies from government tenders totaling CAD 30 billion annually, in addition to CAD 200 billion in infrastructure plan contracts. These measures reflect Ontario's readiness to use all its tools in confronting what it considers economic attacks on the province and the country.



Future Outlook and Commitment to Broadband Internet


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An image showing a chessboard with pieces in a playing position.
Chess” — Source: Pixabay. License: Free to use.

A high-quality symbolic image of digital transformation.
A high-quality symbolic image of digital transformation.
Digital Transformation” — Source: Pixabay. License: Free to use.

Ontario is looking for strong alternatives, with a focus on fiber optic networks, which some consider faster and more sustainable than satellite internet in certain areas. The government reaffirms its commitment to providing broadband internet to all Ontario residents, regardless of their location.



Internet infrastructure in remote areas is vital for economic development and access to essential services. With ongoing trade tensions, the impact of government decisions remains clear on the economy and citizens. These developments highlight the importance of digital transformation and its impact on daily life.



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