Telesat not distracted by Starlink, Kuiper as Lightspeed launch nears

Telesat Corp. CEO Dan Goldberg says the company continues to make strong progress on its low-Earth orbit (LEO) satellite constellation, Telesat Lightspeed, amid significant declines in revenues and net income. Goldberg, together with Telesat chief financial officer Andrew Browne, broke down the Canadian satellite company’s second quarter results during an analysts’ call on Wednesday. They also touched on Telesat’s potential role in protecting Canadian sovereignty and recent moves by other players in the satellite space. Telesat’s consolidated revenues were $106 million, a decrease of 30 per cent from $152 million last year. Goldberg explained that the decline was largely due to reduced returns from several contracts, as well as increased competition. The CEO highlighted changes in the agreements with two direct-to-home customers for the use of its geostationary satellites. One was with EchoStar Corp.’s Dish Network, which saw a lower rate on the renewal of their long-term agreement. The other was with Rogers Communications Inc., which will no longer be using Telesat’s Anik F2 satellite. Goldberg also blamed some Indonesian domestic satellites for the decline, noting that they have recently come online “and are taking some more of that business.” Additionally, Telesat saw less consulting services provided to NASA, further reducing revenues. The decreased revenues impacted the company’s net income, which fell to $76 million, down 41 per cent from $129 million last year. Adjusted EBITDA (earnings before interest, taxes, amortization, and depreciation) was $59 million for Q2, down 43 per cent from $103 million. As Telesat approaches launching its Lightspeed service next year, Goldberg is optimistic about the demand for the service, particularly from governments. Echoing remarks he made during the company’s previous quarterly call, the CEO emphasized that there is a “really meaningful opportunity” for the company as Canada works to strengthen its sovereignty and NATO allies increase their defence spending. When asked about the potential threat to Telesat posed by Amazon.com Inc.’s own LEO satellite constellation, Project Kuiper, Goldberg said that nothing has changed. “We always knew Kuiper was coming,” he said, adding that, “like Starlink” he expects it to be a strong competitor and “a very capable constellation.” Goldberg noted that while Kuiper is focused on the same market segments as Telesat, it is also aiming at consumer broadband, which is not a priority for the Canadian satellite company. “I think that they'll have a great offering, I think that they'll get a lot of traction in the market, and I continue to believe that we will too,” said Goldberg. “It’s a big market. We've got certain capabilities that are differentiated.” Goldberg also discussed recent developments in the direct-to-device market, noting that despite moves from other players, such as Starlink, Telesat still has no intention of offering that service. “Every amp, every kilo of mass is absolutely devoted to our core mission,” he said. “We do not have the capability to modify them in a way to add antennas or payloads to do direct-to-device. The satellites would look massively different than they do, we'd lose schedule, so that’s not something that we're being distracted by.” “Lightspeed is a significant undertaking,” Goldberg said. “We've got to stay focused on that, and we are 1,000 per cent focused on that.” phalentm@thewirereport.ca

Telesat not distracted by Starlink, Kuiper as Lightspeed launch nears

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By Phalen Tynes-MacDonald
| August 6, 2025

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Telesat not distracted by Starlink, Kuiper as Lightspeed launch nears

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