Ford's Starlink Exit: A Costly Pivot with No Plan B

AI-generated image · Bay Street Wire
Ontario officials refuse to disclose the price tag for scrapping a $100 million deal with Elon Musk, while rural internet targets slip by three years.
Ontario Premier Doug Ford decided to terminate a $100-million contract with Elon Musk’s Starlink internet service at the onset of a trade war with the United States, as Global News Toronto first reported. While the province previously indicated the kill fee for the settlement was "significantly less" than the total contract value, the exact cost remains hidden.
King Surma, the president of the treasury board and former infrastructure minister who originally signed the deal, refused to confirm the specific amount spent to cancel the contract when questioned by reporters. Surma instead framed the move as a fulfillment of an election mandate, stating that the decision rested with the taxpayer and that the public voted to cancel the agreement.
However, the fallout of the decision is evident in the province's rural broadband rollout. Global News Toronto reports that public accounts confirm the cancellation has hampered the initiative, with Surma admitting that spending on broadband has decreased due to challenges arising from the scrapped contract.
Consequently, the government quietly pushed back its target for connecting underserved communities from 2025 to 2028. A confidential source told Global News Toronto that there were no "feasible" alternatives to Starlink available to the province, noting that other options, such as Rogers satellite, actually rely on Musk's company's resources. While officials are exploring other options, the source stated that none are currently ready to fill the gap left by the Starlink exit.

