Montreal-based satellite firm Terrestar is set to revolutionise mobile communication by establishing a global direct-to-cell satellite network in collaboration with other “middle powers.” André Tremblay, the company’s chair and former CEO, emphasised that nations lacking the massive scale of the United States or China must unite to create interoperable networks, thereby avoiding reliance on fragmented national systems. This strategy aligns with recent comments made by Canadian Prime Minister Mark Carney at the World Economic Forum, advocating for collective action among middle powers to preserve their economic autonomy.
Bridging the Gap in Mobile Connectivity
Terrestar is seeking to raise approximately $500 million to develop a low-Earth orbit (LEO) satellite network that aims to deliver mobile phone services across Canada, particularly targeting the numerous “dead zones” where traditional ground-based networks fail. The company plans to commence test operations as soon as next year, providing a much-needed solution for areas with inadequate mobile coverage. Tremblay highlighted the importance of designing the satellite constellation according to widely accepted standards to prevent the emergence of monopolistic ecosystems, often referred to as “walled gardens.”
“Our goal is to avoid situations where a single provider controls everything—from hardware to applications and data,” Tremblay noted. Given that satellites only have a brief window of visibility over Canada, forming partnerships with other nations and companies is essential to distribute costs effectively. “It’s unthinkable to invest in such an expensive asset that operates only 2 or 3 per cent of the time,” he added.
Collaborating for Competitive Advantage
Discussions are currently underway with potential partners in Scandinavia and other parts of Europe, focusing on collaboration with technology suppliers, satellite manufacturers, and telecom operators. Tremblay insists that “global co-operation is the only structurally viable way to deliver competitive, resilient, and affordable direct-to-mobile services for Canadians over the long term.” Notably, Terrestar intends to partner with carriers for service delivery rather than marketing directly to consumers.
Within Canada, major telecom companies are already working with U.S. counterparts to provide similar satellite services. Rogers Communications, for instance, has integrated a satellite feature using Elon Musk’s Starlink technology, while BCE Inc.’s Bell Canada has plans to follow suit by 2026 through a partnership with AST SpaceMobile Inc.
Addressing Sovereignty and Coverage Gaps
SpaceX’s Starlink has also sought approval from U.S. regulators to launch a new direct-to-cell service using a constellation of 15,000 LEO satellites, which could significantly enhance connectivity in both the United States and other regions. However, Terrestar has identified critical gaps that need addressing, including the necessity for a Canadian-based sovereign provider, reliable backup networks, and improved coverage in polar areas.
In a notable development, Terrestar is also launching a new Internet of Things (IoT) network aimed at enabling customers to connect various internet-enabled devices, such as sensors, to both satellite and terrestrial wireless systems using a single SIM card. Tremblay points out that this technology serves as a vital bridge for situations where one service type is unreliable—such as in rural locales lacking mobile networks or in environments where satellite signals struggle to penetrate, like underground or inside buildings.
The technology could have wide-ranging applications, including monitoring agricultural machinery, tracking shipping containers, or assessing the progress of forest fires. The IoT network is being crafted on an open-standards model, allowing customers to replace components or vendors without the need to overhaul entire systems, thus avoiding potential tariff-related complications.
Terrestar is not alone in the hybrid IoT space; New Zealand’s Rivir has recently partnered with Rogers to offer a similar service that leverages both Rogers and Starlink networks, as announced by CEO Hamish Hutton on LinkedIn.
Why it Matters
Terrestar’s initiative represents a significant step towards enhancing telecommunications in Canada, particularly in underserved areas. By fostering international partnerships and utilising open standards, the company aims not only to improve connectivity but also to ensure that Canada remains competitive in an increasingly globalised economy. As satellite technology evolves, the potential for transformative changes in communication and IoT applications could reshape the landscape of mobile services, benefiting both urban and rural communities alike.
