Ontario’s Contract With Starlink Is Canceled, Even If US Tariffs Are Permanently Lifted

The government of Ontario terminated its $100 million Starlink contract regardless of future U.S. tariff policy changes for Canada. Premier Doug Ford declared through a Tuesday announcement that Ontario would reject any business that facilitates economic strikes against Ontario and Canada.

The November agreement aimed to establish high-speed internet service for northern Ontario rural areas. Ford originally declared the contract void in early February because of the U.S. tariffs that President Donald Trump planned to enforce. Trump suspended the decision to impose tariffs before the April deadline. When the initial Starlink cancellation announcement came out, Elon Musk simply posted “Oh well” on X as the SpaceX CEO. The latest development has not received any official statements from either Starlink or SpaceX.

The decision by Ontario authorities to cancel Starlink service creates uncertainty for the residents who depend on its current offerings. The satellite internet provider maintains 533,000 customers across Canada. The upcoming Lightspeed network from Telestat represents an alternative option, but it will not become operational until multiple years have passed.

Space industry expert Micah Walter-Range predicts that the business operations of Starlink will face minimal impact. The superior service quality of Starlink continues to make it the preferred choice for service in regions affected by political tensions. The cancellation might lead governments to look for new satellite internet providers for future service needs.

The provincial decision in Ontario does not indicate Starlink will stop operating in Canadian territory. Individual customers can continue to purchase Starlink services directly because the federal government has not issued a ban on the service. The decision to cut government subsidies leaves users with two options: they must switch to other providers or their service will be terminated. The decision of Ontario to break ties creates doubt about what the rural broadband situation will become in the province.

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