Ford's Starlink Contract Reversal Spares Rural Canada from Digital Divide Worsening
February 21, 2025
A recent trade dispute prompted Ontario Premier Doug Ford to announce a potential cancellation of a $100 million contract with Starlink, although he later retracted this decision after tariffs were paused.
The cancellation of the Starlink contract would primarily impact rural areas, where approximately 4.9% of users rely on the service, unlike urban centers that have access to traditional broadband.
Starlink has played a crucial role in enhancing high-speed internet access in Canada, particularly for rural and remote communities.
In Nunavut, around 44% of internet users depend on Starlink, with reliance rates of 27.8% in the Northwest Territories and 20.9% in Yukon.
Eliminating Starlink in these regions would worsen the digital divide, leaving residents with slow and unreliable internet options.
Limited alternatives to Starlink exist, as traditional satellite providers offer slower speeds and higher latency, while ongoing broadband expansion efforts do not sufficiently cover remote areas.
In contrast, provinces like British Columbia and Quebec, which have lower rural populations, would face smaller impacts from the cancellation of Starlink.
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The Potential Fallout If Starlink Were Cancelled in Canada