Ontario has reestablished its agreement with Starlink, the satellite Internet service owned by Elon Musk’s SpaceX, after a trade conflict between Canada and the United States was resolved. This is a major change for the province’s internet access strategy, especially for its satellite-reliant rural communities. With the trade issue resolved, it is now possible for Ontario to utilize Starlink’s state-of-the-art technology to help close the digital gap.
In this blog we will cover why the contract was cancelled in the first place, what changed that led to Starlink being re-contracted, and what this means for residents, businesses, and the future of Ontario’s internet infrastructure.
In the spring of 2021, Ontario signed a contract with Starlink because many remote areas were underserved and required high speed satellite internet access. But, as tensions between Canada and the U.S. continued to grow over policy trade, the Ontario government suddenly and unexpectedly canceled the contract. This was largely viewed as a reaction to the strong protectionist policies that were in place and which greatly affected Canadian industries, leading to fears of economic backlash.
As a result, a lot of rural communities were placed in troubling situations as many had already started to migrate to Starlink’s network and were having their broadband service terminated. The backlash was significant considering there were few providers that could match Starlink’s capabilities.
What Brought an End to the Trade War Conflict?
The trade war between the US and Canada had many components of conflict, which included tariffs on specific goods, border control restrictions, and variations in market access. With time, both of the countries began feeling financial strain and began looking for a solution.
The recent lenient Starlink contract addendum saw the Ontario region Broadbandoff expansion plans being revisited. This development was made possible due to the eased trade restrictions during the conferences between American and Canadian officials.
Why is the Starlink Contract Back?
Ease of Internet Access in Rural Areas
Starlink’s reliability and convenience were among the main drivers of the Province of Ontario’s decision restore the contract. Their ability to offer satellite internet to remote areas unmatched by any other provider. Traditional broadband providers are stagnant due to the high cost of infrastructure expansion, resulting in less competition for satellite providers.
Political Pressure Stimuli
After the deal was initially canceled, there was a lot of resistance coming from citizens, political representatives, and internet activists. The fear of losing internet reliability on sectors that are underserved led to a higher demand. This heightened demand was effective in the deal restoration decision made by the province.
Economics and Technology Progression
There is a growing reliance on digital infrastructure in Ontario’s economy, and reinstating the Starlink contract will allow remote businesses, schools, and healthcare facilities to access the internet speeds needed for today’s operations.
Efficiency in Expenses and Time for Implementation
Starlink’s expansion of satellite coverage can be accomplished more quickly and cheaper than the traditional fiber-optic broadband coverage, which makes it more appealing to Ontario’s broadband expansion objectives.
- The Effects on Ontario Residents and Businesses
- For Rural Households
- More dependable and speedier internet connections to accommodate professionals working from home.
- More opportunities for students to participate in online learning
- Greater reach for telehealth services and other digital resources
- For Small Businesses and Entrepreneurs
- Expansion of ecommerce and other digital services.
- Greater chances for engaging in international business.
- Better interaction with clients and vendors.
- For the Ontario Government
- Achieving goals for broadband expansion within a short period of time.
- Lowering costs for building new infrastructure while still reaching a large audience.
- Greater economic partnership with U.S. technological companies.
- For the Ontario Internet Infrastructure’s Future
Despite Starlink’s old contract being renewed being a good sign for Ontario, there still exists a gap in the broadband strategy which still requires further steps. Possible actions are:
Different Types of Internet: Types consisting of a mix of satellite and fiber optics with 5G internet services.
More open markets: Giving other companies the ability to invest and ensuring greater compettion for better prices and service.
Government spending: Paying for expansion to reach more people with insufficient access.
Final Thoughts
Restoring the Starlink contract is a step in the right direction towards improving rural connectivity and the economy in Ontario. Now with lower trade tensions, the province can aim for working on better digital access and development of technology.
This proves Ontario’s effort in addressing the challenge of connectivity by providing essential service needs to all individuals.
