The federal government says it’s going to spend $13 million toward bringing high speed internet to 869 Indigenous households across nine communities in the Northwest Territories. The money is going to Northwestel, which is partnering with Telesat to make it happen through a combination of fibre and satellite internet.
Right now, about 85.7% of households in the territory have access to the federal government’s minimum standard speeds of 50 Mbps down and 10 Mbps up. This project is aimed at closing the gap for the communities that are still being left out, and it’s part of Ottawa’s bigger push to get the whole country connected by 2030.
“High-speed Internet isn’t just a luxury—it’s essential infrastructure for modern life. For Canada’s rural, remote and northern communities, having a reliable connection can often mean the difference between being able to access vital virtual health care, find work, grow a business or just keep in touch with loved ones. That’s exactly why our government made a historic commitment to connect 98% of Canadian households to high-speed Internet by the end of 2026 and 100% by 2030. Today’s investment brings us one step nearer to closing that last mile,” said Buckley Belanger, Secretary of State for Rural Development, in a statement on Friday.
The plan relies on the upcoming Lightspeed network from Ottawa-based Telesat, a low Earth orbit satellite constellation designed to bridge the digital divide. The federal government had already secured a $600 million deal with Telesat to reserve capacity for providers in the Arctic and rural Canada, making this latest expansion an extension of that partnership.
Telesat’s ambitious project is heavily fueled by public money, backed by $2.14 billion in federal loans and another $400 million from the Quebec government. This brings the total taxpayer-funded support to $2.54 billion. While Ottawa often touts Telesat as a “made-in-Canada” solution, the company has significant American ties; New York investment firm MHR Fund Management holds a 36% stake. MHR is led by Dr. Mark Rachesky, who also serves as the chair of Telesat’s board, adding a layer of U.S. influence to Canada’s primary satellite play.
That said, the technology itself isn’t ready yet. There are currently no production satellites in orbit. Telesat has run tests using early demonstrators, but the main fleet hasn’t launched. The first two production satellites are scheduled to go up in December 2026, with a rapid rollout planned through 2027. Telesat is targeting at least 96 satellites in orbit by early 2028, which is the minimum needed for full global coverage.
In comparison, SpaceX’s Starlink satellite internet constellation it has over 10,300 satellites in orbit right now.
The Telesat constellation was trimmed to 156 satellites to keep costs down, but once it’s live, it’s designed to deliver fibre-like speeds with lower latency than traditional high-altitude satellites.
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