The Government of Canada awards a military communications contract to support Arctic sovereignty and national security

OTTAWA, ON, Aug. 4, 2026 /CNW/ -- The Government of Canada is acting to defend the country, protect Canadians, and support jobs and innovation by awarding a contract to deliver the military Enhanced Satellite Communications Project – Polar (ESCP-P). The Defence Investment Agency (DIA) awarded an initial contract valued at approximately $2.3 billion to Telesat LEO ULC (Telesat). The contract also includes two option periods of approximately $214 million and $218 million.

The contract will defend Canadian sovereignty in the Arctic by delivering the first phase of next-generation military satellite communications capabilities for the Canadian Armed Forces (CAF) through the Telesat Lightspeed Low Earth Orbit (LEO) constellation. Once complete, the military Ka-band satellite communications component of the ESCP-P will enable secure, resilient and reliable military communications in the Arctic and other high-latitude regions. This critical capability will support a broad range of CAF operations, including defending Canada and North America through NORAD, supporting operations with allies, enhancing Arctic situational awareness, and supporting search and rescue missions.

This is the first contract awarded following the strategic partnership established in December 2025 between the Government of Canada, Telesat and MDA Space. It follows engineering and options analysis work that was undertaken by both strategic partners. It supports the delivery of key elements of ESCP-P, including satellite communications infrastructure and services required to provide wideband military communications capabilities. The DIA will continue to build on this partnership with additional procurement agreements to meet the CAF's operational requirements.  

This agreement also allows Telesat to immediately expand its LEO constellation by 69 satellites, bringing the total number of satellites from 156 already in production to 225. The satellites will be built by MDA Space at its state-of-the-art, high-volume satellite manufacturing facility in Montréal. This represents a significant defence procurement milestone and demonstrates the Government of Canada's commitment to accelerating the delivery of critical military capabilities while strengthening Canada's sovereign defence industrial base.

ESCP-P will also include a secure Ultra-High Frequency (UHF) and X-band constellation in Medium Earth Orbit (MEO). MDA Space will serve as the prime contractor responsible for end-to-end mission delivery. Negotiations to advance the definition and development of the UHF and X-band services are underway. Telesat will serve as a subcontractor to MDA Space on this component.

ESCP-P is making the most of Canada's domestic industrial expertise to strengthen sovereign capabilities while creating economic opportunities and supporting highly skilled jobs across the country.

Through Canada's Industrial and Technological Benefits (ITB) Policy, this procurement has the potential to create or maintain 2,600 jobs annually across Canada and contribute $335 million annually to Canada's gross domestic product (GDP) over approximately seven years. This will create opportunities for Canadian businesses, including small and medium-sized enterprises participating in Canada's space and defence supply chains.

Quotes

"Strengthening Northern and Arctic sovereignty is essential to our national security and is a priority for the Government of Canada. Through the Defence Industrial Strategy, the Defence Investment Agency is leveraging our strategic partnerships to invest in our security and our economy. The contract awarded today as part of the ESCP-P initiative will provide enhanced situational awareness and a strong presence in the North while empowering Canada to respond to evolving threats amid a shifting geopolitical environment."

The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)

"By investing in the Enhanced Satellite Communications Project – Polar, we are giving the Canadian Armed Forces next generation military satellite communications, so our personnel have secure, resilient, and reliable connectivity in the Arctic and other high-latitude regions where they need it most. Through this project, we are accelerating the delivery of critical capabilities, defending Canada's sovereignty and security, and strengthening our domestic defence industrial base to deliver for Canadians for years to come."

The Honourable David J. McGuinty
Minister of National Defence

"This project is Canada's Defence Industrial Strategy and the Defence Investment Agency in action, a clear example of delivering the 'Build' pillar of the 'Build-Partner-Buy' approach at speed. By partnering with Canada's space industry, we are delivering critical capabilities to the Canadian Armed Forces while strengthening Canada's sovereign industrial base. This investment will help drive innovation, support high-value jobs, and build the resilient industrial capacity needed to meet Canada's defence and security priorities for years to come."

Doug Guzman 
Chief Executive Officer, Defence Investment Agency 

"Secure, sovereign communications are essential to the Canadian Armed Forces' ability to operate across Canada's North, work seamlessly with our allies and partners, and contribute to continental defence. The Enhanced Satellite Communications Project – Polar will strengthen our ability to connect, command and coordinate in the Arctic and other high-latitude regions, while supporting NORAD modernization and ensuring our personnel have the capabilities they need to meet today's threats and those of the future."

LGen Jamie Speiser-Blanchet
Commander, Royal Canadian Air Force 

"Telesat is honoured to support the Government of Canada in strengthening Northern and Arctic sovereignty. This contract ensures the Canadian Armed Forces will have access to secure, resilient and sovereign connectivity years earlier than originally planned, at a great value for money, and with a scalable architecture designed to meet future global operational requirements and support interoperability with Canada's allies and partners."

Dan Goldberg
President and CEO, Telesat

"At a time when the Canadian Armed Forces urgently need secure and sovereign connectivity in the North, the Government of Canada is committing significant financial resources and tapping our country's world-leading space industrial base to ensure Canada's defence in the strategic region of the Arctic. We commend the government's commitment to sovereign connectivity and for a remarkably agile, rapid and responsive procurement process, which involved advancing from the options analysis and definition phase of the program to development and procurement in only a matter of months."

Mike Greenley
CEO, MDA Space

Quick facts

• 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 and MDA Space under the Enhanced Satellite Communications Project – Polar (ESCP-P).
• As part of the initial phase of the project, Canada awarded a $2.92-million contract (including taxes) to Telesat, in conjunction with MDA Space, to conduct engineering and options analysis work. This work informed the next phase of the project.
• Canada is using a Strategic Partner model for the delivery of ESCP-P. The Strategic Partner model is an innovative approach to defence procurement that streamlines processes and accelerates timelines while leveraging industry expertise in the design, development and delivery of complex defence capabilities.
• This initiative reflects the BUILD component of Canada's Defence Industrial Strategy, which focuses on strengthening and growing Canada's sovereign defence industrial capacity through strategic investments in Canadian industry. Through this approach, Canada is supporting domestic innovation, creating high-value jobs, fostering technological expertise, and building long-term industrial capabilities that contribute to Canada's economic and national security objectives.
• Canada's Industrial and Technological Benefits (ITB) Policy will apply to ESCP-P, helping to create high-value jobs, foster innovation and strengthen Canada's domestic space and defence sectors.

Related products

• Backgrounder: The Government of Canada awards a military communications contract to support Arctic sovereignty and national security

Associated links

• Government of Canada announces strategic partnership to strengthen military communications in the Arctic
• Enhanced Satellite Communications Project – Polar
• NORAD modernization project timelines
• Defence Investment Agency
• Our North, Strong and Free: A Renewed Vision for Canada's Defence
• Industrial and technological benefits
• Canada's Defence Industrial Strategy

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SOURCE Defence Investment Agency

Contacts: Sofiya Sapeha, Press Secretary, Office of the Honourable Stephen Fuhr, [email protected]; Media Relations, Defence Investment Agency, [email protected]