# Canada Awards Telesat Arctic Communications Contract

In August 2026, the Government of Canada awarded Telesat a 15-year, **$2.3 billion** contract to provide satellite communications for the Canadian Armed Forces in the Arctic, with an option for an additional $400 million. The work includes expanding Telesat’s satellite constellation from 156 to 225 satellites. Prime Minister Mark Carney has asked Canada’s Conflict of Interest and Ethics Commissioner to establish a formal screen covering Telesat and its CEO, making oversight of the award a relevant consideration alongside contract execution. This is an awarded contract, not an open solicitation.

- The long-term award establishes Telesat as the contractor for this Arctic communications requirement; companies should assess the contract’s implementation and any related procurement activity for potential business relevance.
- The ethics screen adds a governance and oversight dimension to the award. Contractors and suppliers working in this market should account for that context when evaluating related opportunities.

**Jurisdictions:** international
**Industries:** Defense & Military, Information Technology
**Topics:** Digital Infrastructure
**Published:** November 13, 2026

### Government Entities
- Government of Canada
- Canadian Armed Forces (CAF)
- Conflict of Interest and Ethics Commissioner of Canada
- Defence Investment Agency

### Vendors
- Telesat (awardee)

### Sources
- [Carney invokes conflict of interest screen over $2.3B deal](https://www.thestar.com/politics/federal/mark-carney-invokes-conflict-screen-after-company-run-by-friend-got-2-3b-contract/article_bd6d0c13-b9d0-4dea-8514-56c4b5682e29.html) - Toronto Star