Elon Musk’s company SpaceX applies to offer high-speed internet service to Canadians

June 19, 2020

Elon Musk’s SpaceX has applied to offer high-speed internet to Canadians living in remote areas by beaming it to them via satellites.

The Globe and Mail newspaper first reported that space exploration company SpaceX applied with Canada’s telecom regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), for what’s known as a Basic International Telecommunications Services, or BITS, licence.

That’s a requirement for any company that wants to offer what the CRTC calls “telecommunications traffic between Canada and any other country.” That would theoretically include voice and data packages over cellular networks, but the plan from SpaceX appears to be to offer high-speed internet to Canadians in remote areas by beaming it to them via its network of satellites.

If they are successful in getting a BITS licence, that means SpaceX — whose formal company name is Space Exploration Technologies Corp. — could theoretically try to offer more wireless telecom services down the line, such as voice and data plans. But for now the application focuses on high-speed internet, direct to rural homes and businesses.

CRTC data suggests as many as 40 per cent of Canadians who don’t live in major urban areas do not have access to high-speed internet, and what is available is often prohibitively expensive.

In last fall’s election, the governing Liberals promised to ensure that 95 per cent of Canadian homes and businesses would have high-speed internet by 2026, and that every Canadian household would have access to it by 2030 “no matter where they are located in the country.”

The issue has taken on increased importance during the COVID-19 pandemic, as millions of Canadians find themselves working from home, with seemingly no end in sight.

Rural Canadians weigh in

The application was filed in May and the deadline for public comment is Friday. More than 1,200 Canadians have weighed in on the proposal, a large number of them in support of it.

“I live in rural Ontario where there are no providers that can provide internet at a fast and affordable price,” said Mahdi Hossinzehi, a resident of Cedar Valley, Ont., about 30 kilometres north of Toronto. “With fast, reliable and affordable internet, rural areas will benefit immensely economically and a lot of younger people won’t end up leaving for the city.”

Carol Jobity of Adjala-Tosorontio, just west of Barrie, Ont., is similarly supportive.

“Please approve this,” Jobity wrote to the regulator. “We’re in support 100 per cent.”

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