Ontario has terminated its CA$100 million agreement with Elon Musk’s Starlink, a deal signed in November 2024 to deliver satellite internet to about 15 000 households in the province’s Far North. Energy Minister Stephen Lecce confirmed the move on 29 July 2025, telling Reuters the province paid a “fraction” of the original sum in cancellation fees.
Why Ontario pulled the plug
Premier Doug Ford signalled the reversal in February when he promised to bar new United States contracts if Washington proceeded with 25 per cent import tariffs on Canadian goods. Once the tariff escalation resumed, the province followed through and scrapped the Starlink build-out. Ontario says the decision supports “digital procurement sovereignty” and urges Ottawa to advance domestic broadband alternatives.
What the cancellation means for rural connectivity
Ending the contract leaves many First Nations and remote communities searching for other last-mile options. The fallout affects:
- Digital inclusion plans – northern households face a longer wait for reliable high-speed access.
- Start-ups and telecoms – firms developing satellite or fixed-wireless services may see new provincial demand if they source equipment locally.
- Supply-chain strategy – Ontario’s stance strengthens the case for Canadian-built infrastructure over foreign-owned platforms.
Quebec recently let similar Starlink subsidies lapse, underscoring a wider provincial push to align connectivity spending with trade policy. The three provinces now look to federal programmes and domestic vendors to fill the rural broadband gap while negotiations over cross-border tariffs continue.
