Bell Canada takes aim at potential Starlink subsidies

Tensions are rising in Canada’s telecommunications landscape as the nation’s leading telecom provider, Bell Canada, seeks to block Elon Musk’s Starlink from accessing potential subsidies.

Details of Bell Canada’s anti-Starlink efforts were shared by the Financial Times (FT).

Bell’s Push to Block Starlink Subsidies

As noted by the FT, Bell Canada and its subsidiary Northwestel are lobbying against potential subsidies that Starlink could receive for providing internet access to the country’s remote northern regions, including the Arctic. In correspondence obtained by the Times, Bell argued that Starlink’s flat pricing proves that it does not require support to operate in Canada’s remote areas. 

A decision about the matter will be announced by the Canadian Radio-television and Telecommunications Commission (CRTC). That being said, the CRTC stated in January that a subsidy would help make “internet services more reliable and affordable for residents of the Far North.”

Starlink’s Defense

SpaceX, Starlink’s parent company, has fired back at Bell, stating that blocking subsidies would harm competition and leave isolated communities such as First Nations groups with fewer, more expensive, and less reliable internet options. 

While Canada’s two biggest telecommunications groups, Bell and Rogers, still dominate the country’s internet and phone service market, Starlink has been making serious steps into the country’s remote regions. Starlink received official approval to operate in October 2022, and since then, it has grown its customer base to 400,000 customers as of last year.

Musk’s Empire Under Fire in Canada

The subsidy clash is part of a broader Canadian backlash against Musk’s ventures, which seems to be fueled by his role in the Trump administration. Apart from Bell’s anti-Starlink efforts, Ontario also axed a $100 million Starlink contract. Quebec has noted that it would not be renewing its Starlink subsidy scheme as well. 

Tesla, on the other hand, lost government EV subsidies, with Transport Minister Chrystia Freeland leading the charge. As per Geoff White of the Public Interest Advocacy Center, “We should not be giving one cent of public money to an unaccountable imperialist like Elon Musk.”

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