The Government of Canada is awarding an initial contract valued at approximately $2.3 billion (before tax) to Telesat LEO ULC (Telesat) as part of the Enhanced Satellite Communications Project - Polar (ESCP-P) to defend the country, protect Canadians, and support jobs and innovation by strengthening secure and reliable military communications for the Canadian Armed Forces (CAF), particularly in the Arctic and high-latitude regions. The contract also includes two option periods of approximately $214 million and $218 million (before tax).
This initiative supports Canada's broader commitments to Arctic sovereignty, continental defence, and collective security with allies, including through the North Atlantic Treaty Organization (NATO) and the North American Aerospace Defense Command (NORAD) by improving interoperability and burden sharing.
ESCP-P will deliver next-generation military satellite communications (MILSATCOM) through a hybrid approach combining Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellite systems. These capabilities will provide the CAF with secure, resilient and high-speed connectivity in regions where traditional satellite coverage is limited or unavailable.
The project will support a wide range of CAF operations, including:
- Defending Canada and North America, including NORAD missions
- Supporting international operations with allies
- Enabling search and rescue operations
- Enhancing situational awareness in the Arctic
Updates on the project
On August 4, 2026, the Defence Investment Agency announced a contract award to Telesat for the expansion of their Lightspeed constellation to provide Low Earth Orbit Military Ka-band communications of the ESCP-P requirement. This work will contribute to the development of an advanced satellite constellation and associated ground infrastructure to support secure and reliable communications for CAF operations at home and abroad.
Strategic partnership
On December 9, 2025, Public Services and Procurement Canada (PSPC), on behalf of the Department of National Defence (DND), established a strategic partnership with Telesat Corporation (Ottawa, Ontario) and MDA Space (Sainte-Anne-de-Bellevue, Quebec).
As part of this initial phase, a $2.92 million (including taxes) contract was awarded to Telesat, in conjunction with MDA Space, to conduct engineering and options analysis for ESCP-P. This work has helped inform ongoing negotiations for the next phase of the project.
Next Steps
A future procurement will focus on the Medium Earth Orbit (MEO) component that will provide a purpose-built Canadian military satellite constellation delivering secure X-band and UHF communications across the Arctic, particularly north of 65° latitude. This capability is expected to address persistent gaps in reliable long-distance communications, enabling the CAF to operate effectively, assert sovereignty, and support continental defence and NORAD commitments. MDA Space will serve as the prime contractor responsible for end-to-end mission delivery of the MEO component, and Telesat will serve as a subcontractor to MDA Space.
Supporting Canada's space industry
ESCP-P will contribute to the growth and resilience of Canada's space and defence sectors by:
- Supporting high-skilled jobs across Canada
- Advancing innovation in satellite technologies
- Strengthening domestic industrial capabilities
- Engaging small and medium-sized enterprises through supply chains
The project will be subject to Canada's Industrial and Technological Benefits (ITB) Policy, ensuring that the project will generate high-value jobs in Canada, foster innovation and strengthen Canada's domestic space and defence sectors, and ensure the involvement of the Canadian space ecosystem, including small and medium-sized businesses.
Strengthening Arctic and allied capabilities
Enhanced satellite communications are critical to enabling Canada to:
- Operate effectively in the Arctic's challenging environment
- Maintain situational awareness and presence in the North
- Interoperate seamlessly with NATO allies and partners
- Respond to evolving threats in an increasingly complex space and security environment
Through ESCP-P, Canada is reinforcing its commitment to modern defence capabilities, Arctic security, and international cooperation.
Canada is making generational investments to strengthen national defence, reinforce sovereignty, modernize military capabilities, and build a stronger Canadian defence industrial base. The Government of Canada is currently advancing negotiations on additional key project contracts, with potential agreements in 2026.
