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Shopping local: Telesat selects Calian to supply ‘critical’ software for LEO satellite program

September 10, 2024
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Telesat has chosen Calian Group to supply key software for its state-of-the-art Lightspeed satellite project in the most significant collaboration yet between two of the National Capital Region’s biggest publicly traded tech firms. Telesat, which is headquartered on Elgin Street and trades on the Nasdaq and Toronto Stock Exchange, announced this week that Calian will develop and deploy the software system that will manage much of Telesat’s Lightspeed low-Earth-orbit satellite constellation. Terms of the agreement were not disclosed. Valérie Travain-Milone, president of Calian’s advanced technology division that will be designing the software, said Tuesday the deal is an important one for the Kanata-based company, which also trades on the TSX. “It’s not like it was an RFP that was sent to only local players,” Travain-Milone said. “It was an international competition. So the fact that Calian was awarded this contract shows we are able to compete against international players. “I think it also says this ecosystem of companies headquartered in Ottawa is very innovative. By bringing together this ecosystem, we can achieve incredible things.” It’s not the first time the two tech powerhouses have been involved in projects together, but the new agreement certainly marks a major step forward in the companies’ working relationship. Calian will be in charge of implementing technology that will monitor much of the equipment for Lightspeed, a multibillion-dollar project Telesat hopes will put it at the forefront of the emerging LEO satellite boom aimed at delivering better broadband internet service to far-flung parts of the globe. The Kanata firm’s software will gather information from various components in hundreds of satellites that will eventually comprise the Lightspeed network, giving technicians a clear view of the data so they can accurately assess how well the satellites are performing. The software, which is being designed at Calian’s advanced technology hub in Saskatoon and is now in the testing phase, is “critical” to ensuring that Lightspeed runs properly, Aneesh Dalvi, vice-president for Telesat Lightspeed Systems Development, said in an interview this week. “We talked to a number of different vendors around the world and we liked Calian’s solution the best,” Dalvi explained. “The fact that they're Canadian is a bonus.” Telesat originally issued a request for proposals for a partner to develop the software three years ago, but delays in getting Lightspeed off the ground prompted the company to relaunch the competition in 2023. As it turned out, that pause paid big dividends for Calian. “We were really impressed with how much Calian had progressed in that intervening time,” Dalvi said. “They had clearly made a lot of investments internally on their own to improve their product. It neatly aligned with Telesat’s needs, and they agreed to customize it for our specific requirements.”

Program ramping up

The announcement comes as Telesat ramps up the US$3.5-billion Lightspeed program, which will include 198 LEO satellites in a network the company says will “revolutionize broadband connectivity for enterprise and government users.” The firm, which now has more than 500 employees, has boosted its headcount by 20 per cent since the start of the year and expects to hire dozens of additional workers before 2024 is out. The cutting-edge satellites are expected to start undergoing beta testing in June 2026 and enter full service toward the end of the following year. While the project is now moving full speed ahead, getting to this point hasn’t always been smooth. Telesat’s original plan called for 298 LEO satellites to be supplied by French-Italian aerospace giant Thales Alenia Space at a price tag of about US$5 billion, with the initial launch targeted for this year. But supply-chain disruptions and soaring inflation pushed the project’s estimated cost up to US$5.5 billion, forcing Telesat to reduce the scope of the program and delay production as it sought to rein in costs and secure additional financing. Telesat severed ties with Thales Alenia Space last year and turned to Canadian aerospace firm MDA to manufacture the satellites in a move that’s expected to save the company US$2 billion in capital costs. Dalvi said this week the delays will benefit Lightspeed’s customers in the long run. “We’ve really been able to fine-tune things to meet our needs, both technical needs and business needs,” he said. “I’m really happy with where we’ve landed. It took a couple of years longer maybe than any of us would have hoped, but definitely I think we’ve landed in a better place.”