Space Norway selects Telesat Lightspeed Low Earth Orbit (LEO) connectivity solution

Rhea-AI Summary

Telesat (NASDAQ and TSX: TSAT) and Space Norway have signed a Term Sheet for Telesat Lightspeed Low Earth Orbit (LEO) connectivity services. Space Norway will integrate a multi-Gbps Telesat Lightspeed capacity pool to provide secure, low-latency connectivity for defense, enterprise, maritime and land customers.

The agreement features Committed Information Rates (CIR) and Service Level Agreement (SLA), offering Space Norway flexibility to customize service offerings and modify online services through their infrastructure. The Telesat Lightspeed network, built with Zero-Trust Architecture and strict cybersecurity standards, will provide resilient communications throughout the Arctic region and EMEA.

The parties anticipate finalizing definitive agreements by the second half of 2025.

Positive

• Strategic partnership with Space Norway expands Telesat's presence in Northern Europe
• Multi-Gbps capacity agreement strengthens defense and enterprise service offerings
• Advanced security features position Telesat for sensitive government contracts

Negative

• Final agreements not yet concluded, only term sheet signed
• Implementation timeline extends to late 2025, delaying potential revenue generation

Insights

Satellite Communications Analyst

Telesat has secured a noteworthy strategic partnership with Space Norway, as the companies signed a Term Sheet for the Telesat Lightspeed LEO connectivity service. This agreement signifies positive commercial momentum for Telesat's next-generation satellite network in the highly competitive LEO market.

The deal's architecture reveals important strategic elements. Space Norway will receive a multi-Gbps capacity pool with Committed Information Rates (CIR) and Service Level Agreement (SLA) guarantees - indicating this is a substantial service commitment rather than a test deployment. The technical specifications suggest Telesat is positioning Lightspeed as a premium, enterprise-grade solution rather than a mass-market offering.

Particularly significant is the security emphasis, with Zero-Trust Architecture and private landing station support tailored for defense applications. This positions Telesat in the high-margin government/defense segment, where security requirements create barriers to entry and potentially higher service fees.

For context, securing the Arctic region represents a strategic advantage, as traditional GEO satellites struggle with coverage at extreme northern latitudes. This partnership could establish Telesat as the preferred provider for critical communications in this underserved region.

However, investors should note this remains a preliminary agreement with definitive contracts expected in H2 2025. With no financial terms disclosed and a relatively distant timeline for finalization, the revenue impact remains uncertain. This partnership validates Telesat's technology approach but represents just one step in their broader commercialization strategy for the capital-intensive Lightspeed constellation.

OTTAWA, Canada and OSLO, Norway, March 11, 2025 (GLOBE NEWSWIRE) -- Telesat (NASDAQ and TSX: TSAT), one of the world’s largest and most innovative satellite operators, and Space Norway, Northern Europe’s leading satellite operator, today announced the parties have signed a Term Sheet for Telesat Lightspeed Low Earth Orbit (LEO) connectivity services.

Space Norway plans to integrate a multi-Gbps Telesat Lightspeed capacity pool into its services portfolio to provide secure, low-latency connectivity services for its defense, enterprise, maritime and land customers. The capacity pool, backed by Committed Information Rates (CIR) and a Service Level Agreement (SLA), will deliver maximum flexibility for Space Norway to tailor its service offerings. This includes prioritization of services and data rates to each remote site, and seamless modification of online services via Space Norway’s own infrastructure.

Designed from inception with a Zero-Trust Architecture and strict cybersecurity standards, the advanced Telesat Lightspeed network will provide resilient communications for Norway and its allied partners throughout the Arctic region, and meet mission-critical connectivity requirements for enterprise customers throughout the EMEA region and beyond.

“Space Norway found the Telesat Lightspeed network to be a natural next step in the continued evolution of our multi-orbit strategy. Its advanced architecture, including inter-satellite links and support of private landing stations, allows us to serve national requirements adhering to the strictest security and privacy standards,” commented Morten Tengs, Space Norway’s Chief Executive Officer.

“We are honored that Space Norway selected the Telesat Lightspeed network to deliver secure, resilient connectivity within their multi-orbit infrastructure strategy,” stated Dan Goldberg, Telesat’s President and Chief Executive Officer. “Together, we will bring innovative space-based capabilities that enable defense and enterprise transformation, anywhere in the world.”

With the negotiations on the term sheet finalized, the parties expect to conclude definitive agreements by the second half of 2025.

About Telesat
Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (NASDAQ and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth.

Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.

About Space Norway
Space Norway is Northern Europe’s leading satellite operator and a key player in the European space industry. We provide advanced and reliable satellite solutions to governments, public and defence sectors, commercial maritime, land-based industries, and major broadcasters.

Our hybrid infrastructure, comprising satellites, teleports, fibre networks, and subsea cables, enables us to deliver critical connectivity services across Europe, the Arctic, Antarctic, the Middle East, and Africa.

With industry-leading expertise, agility, and a commitment to excellence, we remain at the forefront of innovation. Our objective is to harness space for security and commercial growth – enriching life and expanding possibilities.

Space Norway is owned by the Norwegian Ministry of Trade, Industry, and Fisheries.

Space Norway. Space for More.

Learn more about Space Norway by visiting spacenorway.com
Connect with Space Norway on LinkedIn and YouTube.                                     

Telesat Media Contact:

W2 Communications
telesat@w2comm.com

Space Norway Media Contacts:

Sally Butler
Elaborate Communications
Tel: +44 (0) 1296 682403
Email: sbutler@elaboratecomms.com 

Press contact at Space Norway:
Randi Ellingsen, Head of Communication and PR
Tel: +47 988 77 675
Email: randi.ellingsen@spacenorway.no

Telesat’s Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact and are “forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expects,” “plans,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. All statements made in this press release are made only as of the date set forth at the beginning of this release. Telesat Corporation undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this press release.

These forward-looking statements are based on Telesat Corporation’s current expectations and are subject to a number of risks, uncertainties and assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Telesat Corporation’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. There are numerous risks and uncertainties associated with Telesat’s business and the Telesat Lightspeed constellation. Known risks and uncertainties include but are not limited to: inflation and rising interest rates; Telesat’s ability to meet the funding conditions of its funding agreements with the Government of Canada and Government of Quebec; technological hurdles, including our and our contractors’ development and deployment of the new technologies required to complete the constellation in time to meet our schedule, or at all; the availability of services and components from our and our contractors’ supply chains; competition; risks associated with domestic and foreign government regulation, including access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance; and volatility in exchange rates. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat Corporation’s annual report on Form 20-F for the year ended December 31, 2023, that was filed on March 28, 2024, with the United States Securities and Exchange Commission (“SEC”) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval (“SEDAR”), and may be accessed on the SEC’s website at https://www.sec.gov/ and SEDAR’s website at https://www.sedarplus.ca/ as well as our subsequent reports on Form 6-K filed with the SEC and also available on SEDAR.

FAQ

What is the strategic partnership between Space Norway and Telesat Lightspeed LEO?

Space Norway will integrate Telesat Lightspeed's multi-Gbps capacity pool to provide secure, low-latency connectivity services for defense, enterprise, maritime and land customers.

When will Space Norway and Telesat (TSAT) finalize their definitive agreements?

The companies expect to conclude definitive agreements by the second half of 2025.

What security features does the Telesat Lightspeed network offer to Space Norway?

The network features Zero-Trust Architecture, strict cybersecurity standards, and supports private landing stations to meet strict security and privacy standards.

What flexibility does the Telesat Lightspeed capacity pool offer to Space Norway?

The capacity pool allows Space Norway to prioritize services, customize data rates for remote sites, and modify online services through their infrastructure.