
Ontario confirms Starlink deal dead, won’t reveal cost of ending contract
- by The Globe and Mail
- Jul 30, 2025
- 0 Comments
- 0 Likes Flag 0 Of 5

Open this photo in gallery:
Stephen Lecce, Ontario Minister of Energy and Mines, speaks at a Toronto press conference as Premier Doug Ford looks on, in April. Mr. Lecce said Wednesday that the province was now aiming to find a Canadian company to replace Starlink.
Arlyn McAdorey/The Canadian Press Create Free Account
The Ontario government says it has agreed with satellite internet provider Starlink – owned by billionaire Elon Musk – on the terms to end a $92-million contract with the company that Premier Doug Ford had vowed to rip up in retaliation for U.S. tariffs during his winter re-election campaign. But the province would not reveal how much taxpayers will have to pay to get out of the deal.
Ontario Minister of Energy and Mines Stephen Lecce, whose department was overseeing the contract, confirmed on Wednesday that talks to end it had finished and that the province was now aiming to find a Canadian company to replace Starlink. He declined to say how much the cancellation cost.
Speaking to reporters at an unrelated event in Toronto, and asked whether taxpayers had a right to know how their money was being spent, Mr. Lecce replied: “I can confirm that the Premier has fulfilled his word, which is to cancel that contract because of the very reasons he cited.”
Back in February, as U.S. President Donald Trump ratcheted up his tariff threats, Mr. Ford – after at first declining to kill the deal – vowed that he would scrap a contract with Starlink signed late last year to provide subsidized high-speed internet access to 15,000 homes in remote parts of the province, including First Nations communities.
The Premier said he did not want to do business with Mr. Musk, who was then a prominent ally of the U.S. President and whom Mr. Ford accused of being “hell-bent on destroying our economy.”
The deal, announced last year, was to deliver high-speed internet to 15,000 residents in rural and northern Ontario.
The Canadian Press
As the size of Mr. Trump’s tariff threats wavered, Mr. Ford put off the cancellation but later confirmed he was going ahead. Mr. Ford said in March he did not know how big a penalty or “kill fee” Ontario would have to pay Starlink. The service would have started in June.
A senior government source acknowledged on Wednesday that a kill fee was negotiated between the parties, but said it is covered by a confidentiality clause. The source said the amount is substantially lower than the total value of the contract. The Globe and Mail is not identifying the source as they were not authorized to speak publicly about the deal.
The source also said the government had contemplated the extraordinary move of passing legislation to retroactively undo the contract and erase any obligation to pay Starlink, but it was deemed unnecessary as the parties were able to reach a deal. (Mr. Ford’s Progressive Conservatives had previously passed legislation that could erase a contract, aimed at ending the monopoly of the brewery-owned Beer Store chain, but backed off enacting it amid warnings of a chilled business climate.)
Please first to comment
Related Post
Stay Connected
Tweets by elonmuskTo get the latest tweets please make sure you are logged in on X on this browser.
Sponsored
Popular Post
Sam Altman's OpenAI Takes On Elon Musk's Grok in AI Chess Tournament Final - Who Won?
28 ViewsAug 09 ,2025