A version of this story first ran on Sudbury.com, a Village Media publication.
The province’s pledge of nearly $100 million for internet infrastructure is a "donation" to billionaire Elon Musk’s Starlink, according to an opposition politician.
The Ontario Satellite Internet program, delivered through Starlink, will use satellites in low-Earth orbit to deliver broadband internet to 15,000 eligible unserved and underserved homes and businesses.
Expenditures such as the $100 million toward Starlink are a “kind of donation — investments, they call them,” with private industry, charged Nickel Belt NDP MPP France Gélinas.
“Am I happy we will have an option for fast internet? Yes, absolutely. Am I disappointed that taxpayer money will go to a rich for-profit corporation with no regard for the users? I am.”
The deal is part of a broader $4-billion plan the province announced in 2023, which Gélinas said should carry greater assurances when it comes to affordability.
“When the government invests billions of taxpayer money, you’d think there’d be a line in that contract that would protect the taxpayers, as in you cannot charge more than $80 per month,” she said.
In areas with limited options when it comes to fast internet, she said companies such as Starlink will be able to charge whatever they want. However, a spokesperson from the province later clarified to Sudbury.com that users will “pay up to a maximum of $150 per month for satellite service,” but did not explain what measure is in place to limit what Starlink can charge.
“We all need internet connection, I fully agree, but the way the government is doing this is they are giving … billions of dollars to private companies to build the infrastructure so it doesn't cost them very much at all,” Gélinas said.
At $150 per month, the internet service would still be more expensive than in urban centres.
A public system could equalize costs across the board and charge users in rural Northern Ontario the same as those in Northern Ontario, despite the delivery cost being greater in the North, but Gélinas said private industry isn’t interested in equity.
“I don’t blame them, this is what businesses do,” Gélinas said, “but the government has a role to play to bring equity of access.”
Sudbury.com sent Ministry of Infrastructure spokespeople questions regarding the Starlink expenditure, and received a written response.
Of the investment, up to $92 million will “cover capacity reservation from Starlink for Ontario, hardware and installation costs, and the Indigenous Engagement and Participation Plan.”
Parent company SpaceX has agreed to reserve capacity in its low-earth orbit system to guarantee service is available for Ontario customers regardless of global demands, the spokesperson said.
“Under the contractual terms, SpaceX is responsible for the remaining costs of providing ongoing high-speed internet service, ensuring that homes and businesses in the specified areas have access to high-speed internet,” they added. “Those who choose to connect will pay a fee for this service, as with any provider. Eligible participating premises will pay up to a maximum of $150 per month for satellite service.”
The spokesperson noted that more information, including on the registration process, will become available in spring 2025.
Tyler Clarke covers city hall and provincial affairs for Sudbury.com.
