Ontario has officially terminated its $100 million contract with Elon Musk’s Starlink satellite internet service, following through on Premier Doug Ford’s threat to cut ties with the company in retaliation for US tariffs on Canadian goods.
Energy and Mines Minister Stephen Lecce confirmed the cancellation Wednesday but declined to reveal the cost of ending the agreement early. The province negotiated a break fee with SpaceX, Starlink’s parent company, though a government source indicated the cost was “substantially less” than the full contract value.
“I can confirm that the premier has fulfilled his word, which is to cancel that contract because of the very reasons he cited in the past,” Lecce said. “We are standing up for Canada.”
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The deal, signed in November, was designed to bring high-speed internet to 15,000 homes and businesses in rural and northern Ontario by June 2025. The province had agreed to cover equipment and installation costs, with monthly service fees ranging from $140 to $185.
Ford first threatened to scrap the agreement in February as President Donald Trump escalated tariff threats against Canada. Though Ford announced his intention to kill the deal in March as part of broader retaliation measures, the formal cancellation with negotiated terms was completed this week.
The cancellation leaves thousands of rural and Indigenous communities without promised internet access. New Democrat MPP Sol Mamakwa, who represents northern Ontario, said the decision particularly impacts remote First Nations communities with limited connectivity options.
“Broadband Internet will be available for all Ontarians, no matter where you are in Ontario. That was [the province’s] commitment,” Mamakwa said.
The province has not announced alternative providers or a timeline for replacing the cancelled service. Opposition leaders criticized the government for failing to secure internet access for northern communities while paying an undisclosed fee to exit the contract.
Ontario’s cancellation was part of broader retaliatory measures against US tariffs, including removing American alcohol from provincial liquor stores and restricting US companies from government contracts worth billions of dollars.
Canada and the US continue negotiations on a trade deal ahead of Trump’s threatened August 1 deadline for imposing 35% tariffs on Canadian goods not covered by existing trade agreements.
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