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Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers
Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers

Toronto Sun

timean hour ago

  • Business
  • Toronto Sun

Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers

The deal would have delivered high-speed internet to 15,000 residents in rural and northern Ontario. Published Jul 30, 2025 • 1 minute read Starlink satellite antennas are seen at the Internationale Funkausstellung (IFA), the international trade show for consumer electronics and home appliances, on Aug. 31, 2023, during a preview at the fair grounds in Berlin. Photo by ODD ANDERSEN / AFP via Getty Images Ontario has officially cancelled its $100-million contract with Starlink, but the province refuses to say how much it cost taxpayers to get out of the deal. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Energy and Mines Minister Stephen Lecce confirmed the cancellation, but did not answer numerous questions about the kill fee the province will have to pay Elon Musk's SpaceX. Infrastructure Minister Kinga Surma announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario. The deal would have also included Starlink internet for remote First Nations. Lecce says the province is working on another high-speed internet solution. Ontario Premier Doug Ford threatened to kill the deal in February if U.S. tariffs on Canadian goods were imposed, and he ultimately pulled the deal in March when U.S. President Donald Trump implemented those tariffs. MLB Toronto & GTA Sunshine Girls Soccer Editorial Cartoons

Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers
Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers

CBC

timean hour ago

  • Business
  • CBC

Ontario officially cancels $100M Starlink contract, won't say cost to taxpayers

Ontario has officially cancelled its $100-million contract with Starlink, but the province refuses to say how much it cost taxpayers to get out of the deal. Energy and Mines Minister Stephen Lecce confirmed the cancellation, but did not answer numerous questions about the kill fee the province will have to pay Elon Musk's SpaceX. Infrastructure Minister Kinga Surma announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario. WATCH | Ontario plans to rip up Starlink deal, tax electricity in response to Trump's tariffs: Ontario plans to rip up Starlink deal, tax electricity in response to Trump's tariffs 5 months ago The deal would have also included Starlink internet for remote First Nations. Lecce says the province is working on another high-speed internet solution. Ontario Premier Doug Ford threatened to kill the deal in February if U.S. tariffs on Canadian goods were imposed, and he ultimately pulled the deal in March when U.S. President Donald Trump implemented those tariffs.

Ontario officially cancels Starlink contract, won't say how much that cost taxpayers
Ontario officially cancels Starlink contract, won't say how much that cost taxpayers

Hamilton Spectator

time2 hours ago

  • Business
  • Hamilton Spectator

Ontario officially cancels Starlink contract, won't say how much that cost taxpayers

TORONTO - Ontario has officially cancelled its $100-million contract with Starlink, but the province refuses to say how much it cost taxpayers to get out of the deal. Energy and Mines Minister Stephen Lecce confirmed the cancellation, but did not answer numerous questions about the kill fee the province will have to pay Elon Musk's SpaceX. Infrastructure Minister Kinga Surma announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario. The deal would have also included Starlink internet for remote First Nations. Lecce says the province is working on another high-speed internet solution. Ontario Premier Doug Ford threatened to kill the deal in February if U.S. tariffs on Canadian goods were imposed, and he ultimately pulled the deal in March when U.S. President Donald Trump implemented those tariffs. This report by The Canadian Press was first published July 30, 2025.

Starlink Is Set to Receive Billions in Federal Subsidies but Analysis Says It Can't Handle the Traffic
Starlink Is Set to Receive Billions in Federal Subsidies but Analysis Says It Can't Handle the Traffic

CNET

time2 hours ago

  • Business
  • CNET

Starlink Is Set to Receive Billions in Federal Subsidies but Analysis Says It Can't Handle the Traffic

Key takeaways A new X-Lab analysis indicates Starlink can only support 6.66 households per square mile before speeds drop below FCC broadband minimums (100/20 Mbps). Currently, only 17% of Starlink users currently meet FCC broadband speeds, yet altered BEAD program rules could direct significant federal funds to Starlink as the lowest-cost option. While Starlink greatly improves internet access and quality for rural Americans, experts worry about its long-term viability for widespread broadband expansion. Starlink has hit a lot of milestones in the past month: It debuted satellite texting on the big three cellphone carriers, passed 2 million subscribers in the US and launched its 500th Falcon 9 rocket. But a new analysis from Penn State University's X-Lab is pouring some cold water on all that good news. Researchers found that Starlink's satellites can handle just 6.66 households per square mile before service starts to dip below minimum broadband speeds set by the Federal Communication Commission. Last year, the FCC raised this standard to 100 megabits per second download, 20Mbps upload and below 100 milliseconds latency. Starlink has been an absolute game changer in rural areas -- the first truly modern internet connection many Americans have ever had -- but it's also never been fast enough to meet the FCC's definition of broadband. With the company set to receive billions of dollars in federal subsidies to add millions of new subscribers, this new analysis suggests we're at risk of stranding rural America with subpar internet for decades to come. 'What our math is showing is that there's a problem,' Sascha Meinrath, the X-Lab researcher who led the analysis, told CNET. 'We're raising some substantial concerns that go to the heart of the largest public expenditure in broadband infrastructure in the nation's history.' Locating local internet providers According to a report from the speed test site Ookla in June, only 17% of Starlink customers are currently getting 100/20Mbps speeds. (Disclosure: Ookla is owned by the same parent company as CNET, Ziff Davis.) That 100/20Mbps line might not matter very much for Starlink customers who are just happy to finally have an internet connection that can stream Netflix, but it means a lot for the $42.5 billion in federal funds going out to states through the Broadband Equity Access and Deployment program, which was created to expand broadband infrastructure in rural areas. We're betting big that this will work, and yet it's very clear that whoever is betting on Starlink is doing so blindly. Sascha Meinrath, director of X-Lab at Penn State University President Donald Trump's Commerce Secretary tweaked BEAD's rules in June to make them more 'technology neutral,' an update that was viewed by many as a handout to Elon Musk's Starlink. One industry expert I spoke to at the time predicted that more than half of BEAD money would go to Starlink after the changes, up from an expected $4.1 billion under the old rules. The original law favored fiber-optic networks -- long considered the gold standard for broadband connections -- while the new guidance generally requires states to choose the lowest-cost option. However, any internet provider that wants to take BEAD money still has to prove it can supply future customers with 100/20Mbps speeds. One state broadband director who spoke with me on the condition of anonymity said it's largely a guessing game with low-Earth orbit satellite providers like Starlink and Amazon's Project Kuiper. While fiber companies bidding on BEAD projects go through a detailed physical inspection process, states generally have to take Starlink and Amazon's word that they can provide the speeds they say they will. 'We're betting big that this will work, and yet it's very clear that whoever is betting on Starlink is doing so blindly. And that is quite disconcerting,' Meinrath said. A representative for Starlink did not respond to a request for comment. Can Starlink's speeds keep up with millions of new customers? Starlink has increased speeds and added millions of customers since it launched service in 2020. In Ookla's most recent speed test report, median download speeds nearly doubled from 53.95Mbps in 2022 to 104.71Mbps today. Ookla Starlink accomplished that by drastically increasing its number of satellites in orbit. At the beginning of 2022, it had 1,761 satellites in the sky; today, that number stands at 7,943, according to Jonathan McDowell, an astronomer who maintains a catalog of space objects. SpaceX, the company that owns Starlink, has said it eventually hopes to have as many as 42,000 satellites in space. While Starlink's latest speed test results (barely) clear the FCC's bar for download speeds, most Starlink subscribers aren't getting the minimum in upload speed. Ookla's data shows median upload speeds of 14.84Mbps, which is well below the 20Mbps required for BEAD money. But many customers may not even notice those slower upload speeds, says Ellis Scherer, a broadband policy analyst at the Information Technology and Innovation Foundation, a nonpartisan science and technology policy research institute. 'The reality is, everybody's broadband needs and internet usage needs are going to be different,' Scherer told CNET. 'When you have these arbitrary definitions like 100 over 20, it does lead to a situation where certain technologies are considered not feasible, when, in reality, for the needs of actual broadband consumers, they probably provide more than enough capacity.' It's true that most of us download a lot more than we upload. Monthly upstream data consumption is about 48GB for the average US household, compared to 616GB for downstream, according to the latest report from OpenVault. That said, upstream data consumption is growing much faster than downstream, as things like video calls, cloud backups and IoT devices become a more significant part of our home internet mix. Zoom only requires about 3Mbps upload speeds for an HD video call, so you could theoretically hold five different video meetings on one Starlink connection. But researchers have also documented 'latency spikes' caused by handoffs to different satellites as they orbit the Earth. 'There is a major increase in latency at the point when the user is assigned to a different spacecraft. The worst case in this data set is a shift from 30ms to 80ms,' writes Geoff Huston, a scientist who studies internet infrastructure at the Asia Pacific Network Information Centre. 80ms latency isn't ideal -- it'd make for a pretty miserable online gaming experience, for example -- but it still has a good amount of wiggle room under the FCC's 100ms benchmark. It could still be high enough that it keeps Starlink customers from fully participating in a virtual world many of us take for granted. 'If I'm online and scrolling through websites, I might not notice that. If I'm trying to do a live telemedicine appointment, it might be really problematic,' Meinrath said. But most Starlink customers don't seem to mind too much. In a customer satisfaction survey taken a year ago, Starlink customers reported more outages than customers with fiber internet but were much more satisfied with their service overall. That's because Starlink is so much better than the internet most rural Americans had before -- if they had it at all -- that they're more forgiving of the occasional outage or latency spike. Will Starlink improve in the future? That's the $42.5 billion question. SpaceX owner Elon Musk has a long history of saying Starlink improvements are right around the corner. Its initial application to the FCC in 2016 promised gigabit speeds for every user. Last November, SpaceX President Gwynne Shotwell even predicted that speeds of 2 gigabits per second aren't out of the question. But Meinrath says these rely on misleading metrics. 'I see it again and again in various Starlink documents of how much throughput capacity if you just aggregated all the transceivers on all of the satellites. It's just ludicrous,' Meinrath says. 'Each of my tires can each go 100 miles per hour. It doesn't mean my car can go 400.' We're not talking about capacity for LEOs today. We're talking about capacity for LEOs in four years. Ellis Scherer, broadband policy analyst at the Information Technology and Innovation Foundation Starlink defenders would argue the company has pulled off an impressive one-two feat: doubling speeds in the US over two years while adding more than 5 million customers globally. If it gets to its stated goal of 42,000 satellites, is it unreasonable to think it could connect a good chunk of the 7 million homes that BEAD dollars are designated for? 'We're not talking about capacity for LEOs today. We're talking about capacity for LEOs in four years, which, if the current pace of progress for LEO broadband is any indicator, will be quite a lot more than it is today,' Scherer told me. Scherer pointed to a couple of reasons for optimism about Starlink taking on new BEAD users: friendlier FCC rules on the wireless spectrum used by Starlink and newer satellites with 10 times the downstream capacity of the previous generation. Not everyone is so convinced. ' 'When the next iteration comes out, it'll all be fixed.' Yeah, I've been hearing this now for five years. It's still not fixed. And in fact, it's consistently not fixed,' Meinrath says. What to consider before you sign up for Starlink Starlink is an excellent internet option in rural areas -- especially if you're in one of the locations that can get the $349 satellite dish free -- but there are some limitations to keep in mind. The areas in white are currently offering the Standard Kit ($349) free when you commit to one year of service. Starlink For one, you'll need a clear view of the sky. Objects like a tree branch, pole or roof can disrupt your connection. Before you order anything, you can use Starlink's app to check for obstructions that may impact your service. The other thing to note is how many other Starlink customers are in your area. At my address in Seattle, for example, there's currently a $1,000 'Demand Surcharge' because of high use in the area. That's up from $500 previously, indicating that Starlink's capacity issues aren't going away anytime soon. 'What we see again and again is that there's a first mover advantage to joining Starlink. If you're the first individual in your region that joins, you get wonderful service,' Meinrath says. 'The problem is when you end up with congestion, i.e. other users. Starlink seems to not be able to deliver the claimed or advertised speeds that it says it can deliver. That has been just overwhelmingly documented.' If you can get a cable, fiber or 5G home internet provider at your home, I'd go with one of those over Starlink every time. (You can check what's available by entering your address on the FCC's broadband map.) Starlink is your best bet if none of those options are available. Just know that if there are more than six other houses that use it within a square mile, you probably won't technically be getting standard FCC broadband speeds.

Ontario officially cancels Starlink contract, won't say how much that cost taxpayers
Ontario officially cancels Starlink contract, won't say how much that cost taxpayers

Winnipeg Free Press

time2 hours ago

  • Business
  • Winnipeg Free Press

Ontario officially cancels Starlink contract, won't say how much that cost taxpayers

TORONTO – Ontario has officially cancelled its $100-million contract with Starlink, but the province refuses to say how much it cost taxpayers to get out of the deal. Energy and Mines Minister Stephen Lecce confirmed the cancellation, but did not answer numerous questions about the kill fee the province will have to pay Elon Musk's SpaceX. Infrastructure Minister Kinga Surma announced the deal last year to deliver high-speed internet to 15,000 residents in rural and northern Ontario. The deal would have also included Starlink internet for remote First Nations. Lecce says the province is working on another high-speed internet solution. Ontario Premier Doug Ford threatened to kill the deal in February if U.S. tariffs on Canadian goods were imposed, and he ultimately pulled the deal in March when U.S. President Donald Trump implemented those tariffs. This report by The Canadian Press was first published July 30, 2025.

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