The Ontario government has officially terminated its $100 million contract with Elon Musk’s Starlink, even if the U.S. tariffs that triggered the decision are eventually lifted. Premier Doug Ford confirmed the cancellation in a press conference, stating that Ontario would not do business with companies that support economic actions harming the province and the country.
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Ontario Cancels $100M Starlink Contract Amid U.S. Tariffs: What It Means for Rural Internet Users
“We’re ripping up Ontario’s contract with Starlink. It’s done. It’s gone. We won’t award contracts to people who enable and encourage economic attacks on our province and our country,” Ford announced.
This move marks a significant shift in Ontario’s strategy for expanding internet access to underserved rural areas, many of which have relied on Starlink for high-speed satellite connectivity.
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The Timeline of Ontario’s Starlink Contract Cancellation
November 2024: Ontario Signs Starlink Deal
In an effort to expand high-speed internet to rural and northern communities, Ontario signed a $100 million contract with Starlink in November 2024. The deal aimed to provide thousands of residents with fast and reliable satellite-based internet services.
February 2025: Cancellation Threats Amid Tariff Talks
Earlier in February, Ford hinted at canceling the contract due to looming tariffs imposed by the U.S. against Canada. However, the decision was temporarily paused when then-President Donald Trump delayed the tariffs against Canada and Mexico.
March 2025: Contract Officially Terminated
Despite the delay in tariff implementation, Ontario officially ended its agreement with Starlink, citing concerns over economic attacks and the need to support Canadian-based alternatives.
How Will This Affect Ontario Residents Who Rely on Starlink?
Disruptions for Existing Starlink Users
Ontario’s decision raises questions about how existing Starlink users in the province will be affected. Currently, Starlink has an estimated 533,000 customers across Canada, many of whom reside in remote areas where traditional broadband services are unavailable.
According to space industry expert Micah Walter-Range, president of Caelus Partners, Starlink customers in Ontario may face limited options in the short term.
“Unless the Canadian government bans Starlink at the national level and revokes its authorization to transmit signals over Canada, a customer who buys from Starlink directly should be unaffected,” Walter-Range explained. “However, if a Canadian resident gets access through a subsidized government program that uses Starlink as the provider, they could be switched over to a different option or possibly nothing at all.”
Are There Alternative Providers Available?
Currently, Canada has limited alternatives to Starlink for satellite internet services. One notable competitor is Telestat, which is developing its own high-speed satellite internet service, Lightspeed. However, Telestat’s service is still years away from full deployment.
For now, many rural and northern residents in Ontario may have to rely on older satellite technology with lower speeds and higher latency, as fiber-optic broadband expansion remains slow in remote regions.
What This Means for Starlink’s Business in Canada
Despite the Ontario government’s move, industry experts suggest that Starlink’s overall business won’t be significantly impacted.
“The business is unlikely to take a significant hit for now,” Walter-Range noted. “In many places, Starlink is simply the best option available, even if customers dislike Musk or the Trump administration. Recent events do create incentives for governments and other customers to seek alternatives for the long term.”
This shift could push Canada to develop more homegrown satellite internet solutions, reducing reliance on U.S.-based providers.
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Final Thoughts: A Blow to Rural Internet, But an Opportunity for Canadian Tech?
While Ontario’s cancellation of the Starlink contract represents a setback for rural internet expansion, it also opens doors for Canadian companies to step in and fill the gap. The decision reflects growing tensions between Canada and the U.S. over trade policies, but its long-term effects remain uncertain.
For now, residents in Ontario’s remote areas may face uncertainty regarding their internet options. As the province moves forward with new plans, the success of alternative solutions will determine whether this decision helps or hinders Ontario’s goal of universal internet access.
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