Telesat Strategic Shift : Canadian telecommunications satellite operator Telesat is making waves as it shakes up its planned Lightspeed global internet network by swapping suppliers. The company’s strategic move involves shifting from the initial choice of French-Italian manufacturer Thales Alenia Space to Canadian space company MDA. This transition is projected to yield substantial “total capital cost savings” to the tune of approximately $2 billion, Telesat revealed.
The rollout of the Lightspeed network is set to commence with the launch of the first satellites slated for mid-2026, and its worldwide service will be initiated once the initial fleet of 156 satellites takes their places in orbit. The comprehensive network blueprint outlines a constellation of 198 satellites.
In a remarkable turn of events, Telesat’s stock experienced a remarkable surge of up to 64% during the early trading hours, swiftly ascending from its previous close at $8.45 per share. This buoyant momentum eased slightly, stabilizing at around a 50% increase.
Telesat CEO Dan Goldberg expressed his immense pride in the innovation demonstrated by the Telesat team, which has played a pivotal role in refining operational strategies that led to remarkable cost reductions. Goldberg underscored these achievements in a press release, firmly establishing the company’s trajectory toward transformative outcomes.
The ambitious endeavor had initially entailed a contract with Thales Alenia Space for the satellite manufacturing phase, accounting for an estimated $5 billion, encompassing satellite production costs of roughly $3 billion. This outlay also encompassed essential components such as rocket launches, the establishment of ground infrastructure, and the development of intricate software platforms to oversee network operations.
It’s crucial to note that Telesat’s Lightspeed initiative diverges from the scope of direct-to-consumer markets targeted by industry giants like SpaceX’s Starlink or Amazon’s Kuiper. Instead, Telesat remains steadfast in its commitment to catering to enterprise customers, which include pivotal sectors like government entities and commercial markets domains that have witnessed Starlink’s gradual expansion over recent times.
In conjunction with its strategic overhaul, Telesat unveiled its second-quarter financial performance. Despite experiencing a 4% decrease in revenue, which amounted to $180 million when compared to the same period a year earlier, the company achieved a striking financial turnaround. Net income during this quarter surged to $520 million, showcasing a remarkable shift from the $4 million net loss reported in the corresponding period last year. This transformational shift was significantly influenced by a substantial $260 million payment from the Federal Communications Commission (FCC) as compensation for vacating spectrum for enabling 5G utilization within the United States.
Buoyed by its strategic evolution and robust financial trajectory, Telesat remains poised to meet its full-year 2023 revenue projections, with anticipated earnings ranging between $690 million and $710 million. The company’s steadfast commitment to innovation and transformation underscores its enduring resilience and capacity to adapt to the dynamic landscape of modern telecommunications.
Telesat is shaking up its planned Lightspeed global internet network by switching providers. The corporation switched from Thales Alenia Space to MDA, a Canadian space company. Telesat expects $2 billion in “total capital cost savings” from this transformation.
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After the first 156 satellites launch in mid-2026, the Lightspeed network will launch worldwide. The network plan includes 198 satellites Telesat’s stock rose 64% in early trading from $8.45 per share. This buoyant momentum stabilized at 50%.
Telesat CEO Dan Goldberg was proud of the team’s creativity in improving operational tactics that reduced costs. In a news release, Goldberg reaffirmed the company’s transformational path.
Thales Alenia Space was contracted to manufacture the satellites for $5 billion, including $3 billion in satellite production costs. Rocket launches, ground infrastructure, and complex network management software were included in this expenditure.
It’s important to note that Telesat’s Lightspeed effort differs from SpaceX’s Starlink and Amazon’s Kuiper’s direct-to-consumer businesses. Instead, Telesat continues to serve corporate customers, including government and commercial sectors that have seen Starlink’s slow expansion.
Telesat released its second-quarter financials alongside its strategy makeover. The corporation turned a profit despite a 4% drop in revenue to $180 million. This quarter’s net income rose to $520 million from $4 million last year. A $260 million payment from the Federal Communications Commission (FCC) for vacating airwaves for 5G use in the US encouraged this dramatic decision.
Telesat expects to generate $690 million to $710 million in 2023, buoyed by its strategy shift and strong financial performance. Its dedication to innovation and reinvention shows its durability and ability to adapt to modern telecoms.
Telesat, a Canadian satellite phone firm, is making waves by switching providers for its projected Lightspeed global internet network. Switching from French-Italian Thales Alenia Space to Canadian MDA is a strategic decision. Telesat expects “total capital cost savings” of $2 billion from this adjustment.
Lightspeed network satellites will debut in mid-2026. After 156 satellites are launched, the network will be global. The network plan shows 198 satellites.
Telesat’s shares unexpectedly soared by up to 64% in early trade, climbing from $8.45 per share, where it had closed the day before. The rise slowed and stabilized at about 50%.
Telesat CEO Dan Goldberg praised his team’s inventiveness for enhancing business tactics and cutting costs. Goldberg announced these accomplishments. This showed the company was on pace to revolutionary results.
Thales Alenia Space was initially contracted to build the satellites. This portion was estimated to cost $5 billion and the satellites $3 billion. This cost included rocket launches, ground infrastructure, and complex software tools to monitor network operations.
It’s vital to distinguish Telesat’s Lightspeed project from SpaceX’s Starlink and Amazon’s Kuiper’s direct-to-consumer companies. Telesat focuses on enterprise customers like government organizations and business markets. Starlink has been growing in these areas for years.
Telesat revealed its second-quarter financials and strategy. The company’s finances improved despite a 4% reduction in sales, or $180 million, from last year. This quarter’s net gain was $520 million, up from previous year’s $4 million loss. This important adjustment was influenced by a $260 million FCC payout for airwaves given up for 5G use in the US.
Telesat is on track to fulfill its 2023 revenue forecasts of $690 million to $710 million. Due to its strategic evolution and financial success. The company’s commitment to innovation and change displays its resilience and ability to adapt to modern telecoms.
Telesat is switching internet service providers, altering its planned Lightspeed global internet network. Thales Alenia Space became Canadian space company MDA. Telesat expects a $2 billion “total capital cost savings” from this shift Lightspeed will reach global in mid-2026 when the first 156 satellites launch. The network plan has 198 satellites.
Telesat’s stock rose 64% from $8.45 at trading’s start. Buoyant motion halted at 50% Telesat CEO Dan Goldberg was pleased with the team’s imaginative cost-cutting and efficiency improvements. Goldberg stated the corporation would change in a news release.
Thales Alenia Space received a $5 billion contract to build the satellites, including $3 billion for manufacturing. Launching rockets, developing infrastructure, and creating complex network management software used this money.
Telesat’s Lightspeed project is not like direct-to-consumer enterprises like SpaceX’s Starlink and Amazon’s Kuiper. Telesat continues to serve government and corporate users, who have watched Starlink’s slow growth.
Telesat announced its second-quarter results alongside its new plan. Even though revenues declined 4% to $180 million, the company made money. This quarter’s net income rose to $520 million from $4 million last year. A $260 million FCC payment for giving up US airwaves for 5G use caused this major move.
Telesat expects to make $690710 million in 2023 thanks to its new strategy and financial performance. Its dedication to innovation shows how well it can adapt to modern telecoms.
Telesat, a Canadian satellite phone manufacturer, is making waves by switching providers for its Lightspeed global internet network. Switching from French-Italian Thales Alenia Space to Canadian MDA is strategic. Telesat expects a $2 billion “total capital cost savings” from this shift.
Lightspeed network satellites will launch mid-2026. The network will span the globe with 156 satellites. Network plan shows 198 satellites.
In early trading, Telesat’s shares jumped 64% from $8.45, where they closed the day before. Rise halted at 50%.
Telesat CEO Dan Goldberg applauded his team’s inventiveness for improving business tactics and cutting costs. Goldberg informed everyone. The corporation was on track for major changes.
Thales Alenia Space initially built the satellites. This portion was estimated to cost $5 billion and the satellites $3 billion. This cost covered rocket flights, ground infrastructure, and complex network monitoring software.
Telesat’s Lightspeed initiative should be distinguished from direct-to-consumer enterprises like SpaceX’s Starlink and Amazon’s Kuiper. Telesat serves government organizations and businesses. Starlink has improved throughout time.
Telesat reported second-quarter performance and objectives. The company’s finances improved despite sales falling 4%, or $180 million, from last year. This quarter’s net gain was $520 million, up from $4 million last year. The FCC paid $260 million for US 5G spectrum, resulting in this crucial adjustment.
Telesat is on target to sell $690 million to $710 million in 2023. Its transformation and financial success. The company’s commitment to innovation displays its strength and ability to adapt to modern telecoms.
Canadian satellite communications business Telesat is well-known. Its stock rose Friday as it switched providers for its worldwide Lightspeed internet network. Lightspeed wants to switch internet providers worldwide.
MDA, a renowned Canadian space corporation, will build Telesat’s new Lightspeed satellites. Space business changes. Importantly, they no longer work with French-Italian Thales Alenia Space. The predicted $2 billion “total capital cost savings” occurred. Telesat’s move pleased everyone.
Telesat expects to launch the first Lightspeed satellites by mid-2026. This project has no date. The company expects global service after 156 satellites are launched. The vast network offers exceptional reach and connectivity because 198 satellites were properly arranged.
Telesat Company shares rose 64% in the first few hours. The shares closed at $8.45. The market loved this tactic because the company’s shares rose after a little modification.
Telesat CEO Dan Goldberg was proud of his team’s imaginative approach to this life-changing change. Thales Alenia Space was purchased for $510 billion. This cost included satellites, rockets, a base, and complex network software platforms.
Lightspeed would not compete with SpaceX Starlink or Amazon Kuiper in direct-to-consumer sales, Goldberg added. Telesat prioritizes government and business clientele. Because of its long history and extensive experience, Telesat differs from its space communications competitors, whose plans alter frequently.
Telesat reported second-quarter financials. After the new provider news. Sales fell 4% to $180 million this quarter. Telesat’s net profits jumped to $520 million this quarter, a solid result. It lost $4 million last year. The FCC spent $260 million preparing US airwaves for 5G. This changed net income drastically. US 5G use cost this.
Telesat has maintained its position despite changing strategy and direction. The company expects sales of $690 million to $710 million this year. The trust expects sales of $690710 million. Telesat values stakeholders and customers despite the fast-changing satellite communication sector
Our Reader’s Queries
Is Telesat owned by Bell?
In 1998, the Canadian government privatized and sold Telesat Canada to Bell Canada. However, on December 18, 2006, Loral Space & Communications, in partnership with Canada’s Public Sector Pension Investment Board (PSP Investments), announced their acquisition of Telesat for a whopping US$2.8 billion.
How many LEO satellites does Telesat have?
Telesat boasts a cutting-edge global network consisting of 198 advanced Low Earth Orbit (LEO) satellites, seamlessly integrated with on-ground data networks. This innovative system is designed to provide unparalleled connectivity across the globe.
How does LEO satellite work?
LEO systems are in constant motion around the earth, orbiting at altitudes between 700 to 3000 km. Unlike GEOs, they move relative to the earth. A standard LEO satellite completes an orbit in under two hours, resulting in a brief window of visibility that lasts only a few minutes.
Who manufactures Telesat Lightspeed?
Telesat has been buzzing with excitement over the past few weeks! In August, we announced our partnership with MDA, a top space technology company, to produce 198 cutting-edge satellites for our Telesat Lightspeed Low Earth Orbit (LEO) initiative. This collaboration is a major step forward in our mission to provide advanced satellite technology to our customers.