A major U.S. telecom company has scrapped a billion-dollar deal with Brampton-based MDA Space Ltd., opting instead to work with Elon Musk’s SpaceX.
EchoStar Corp. cancelled its $1.3 billion (USD) contract with MDA, which had been tapped to supply next-generation 5G-capable satellites for EchoStar’s planned low Earth orbit constellation. Instead, EchoStar is preparing to sell telecommunications licenses to SpaceX in a deal reportedly worth $17 billion (USD).
MDA emphasized that the cancellation was unrelated to its performance, adding that it will be fully compensated for termination costs and fees under the agreement. The company did not disclose the compensation amount but confirmed it still has an active $60 million contract with EchoStar for advanced payloads and Earth observation technology.
Despite the setback, MDA Space remains a central player in the global space sector. From its Brampton headquarters, it continues work on the $1-billion Canadarm3 project for NASA’s Lunar Gateway and the Lightspeed constellation, a Canadian-led low Earth orbit network of 200 satellites. The firm has also provided satellite intelligence to monitor Russian military activities during the war in Ukraine.
Would you like me to also frame this story from a Brampton economic perspective—highlighting the city’s role as a hub for aerospace innovation and how this cancellation could affect local jobs and investment?