because the Canadian-engineered satellites will be smaller and cheaper to manufacture. The total capital cost of the Lightspeed project, which consists of 198 LEO satellites, is now expected to be in the range of US$3.5 billion. In addition to the estimated US$2 billion in capital cost savings from switching to MDA, Telesat said it also expects “substantial savings due to significantly reduced financing costs relative to the company’s prior plan.” Telesat said it has lined up about US$2 billion in funding from its federal and provincial government partners, financing that is contingent on conditions such as completion of due diligence and the conclusion of definitive agreements. That money, combined with additional cash from vendors and its own reserves, will pay for the first 156 satellites, Goldberg said, enough to give the company “full global coverage.” The remaining 42 satellites will be funded from existing cash flows once Lightspeed gets up and running at full speed, he added. The company expects to start launching the satellites in mid-2026, with global service scheduled to begin by the end of 2027. The LEO satellites will be located about 1,000 kilometres above the Earth’s surface, much closer than traditional satellites. That will allow for lower latency, or lag time, which is expected to translate into better wireless service for customers in remote areas and mobile locations such as airliners and cruise ships. Last month’s announcement of the new deal with MDA has sent Telesat’s stock price soaring. Since closing at $11.39 on Aug. 10, the firm’s shares have more than doubled in value. They were trading at $23.16 on the Toronto Stock Exchange late Wednesday morning. Get our email newsletters Get up-to-date news about the companies, people and issues that impact businesses in Ottawa and beyond. Sign me up