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 defense procurement milestone and demonstrates the Government of Canada’s commitment to accelerating the delivery of critical military capabilities while strengthening Canada’s sovereign defense 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 defense supply chains.
