Canadian satellite communications firm Telesat has reportedly signed a USD 3 billion contract with Thales Alenia Space, a French-Italian aerospace company to develop around 300 LEO (low earth orbit) telecommunication satellites.
For those unaware, LEO satellites function relatively closer to earth as compared to traditional ones, further allowing them to offer faster broadband service, especially in remote areas.
Dan Goldberg, President and Chief Executive of Telesat mentioned that the team is looking forward to entering this business space amidst the growing demand for worldwide broadband connectivity. He added that Telesat is likely to launch the first satellites in the upcoming two years. Goldberg further claimed that the deal is likely to be finalized in the upcoming months.
According to President and CEO of Thales Alenia Space Hervé Derrey, the first 13 satellites would be developed at the company’s facility in Toulouse. Telesat’s satellites will be one of the most advanced devices, outperforming all existing and traditional systems.
It is worth noting that Thales Alenia Space is a joint venture agreement between two of the leading aerospace companies; France-based Thales Group and Italy’s Leonardo S.p.A. Moreover, Leonardo’s shares surged by 1.7% while Thales recorded a 1.4% increase.
Telesat is shifting into a highly competitive business vertical of LEO networks, with the intention to offer services to several enterprise customers such as government, mobile operators, as well as shipping and aircraft companies.
Some of the companies defining the competitive outlook are Jeff Bezos’ Blue Origin and its Project Kuiper as well as Elon Musk’s SpaceX and its Starlink project. Some analysts say that the LEO competition is currently focused on the consumer market.
Speaking of SpaceX, the American aerospace and satellite manufacturer has been chosen by NASA to launch the first two pieces of the Lunar Gateway in the year 2024.
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