en.Wedoany.com Reported - MDA Space Ltd. (TSX: MDA; NYSE: MDA) will supply additional MDA AURORA™ next-generation broadband satellites to Telesat LEO ULC, a subsidiary of Telesat Corporation (Nasdaq: TSAT; TSX: TSAT), in support of the operator's expansion plans for the Telesat Lightspeed low Earth orbit constellation.

Telesat is expanding its low Earth orbit constellation by 69 satellites, increasing the fully funded satellite total from 156 to 225. For MDA Space, this means an additional 27 satellites on top of the 198 already announced for the Telesat Lightspeed constellation. Accordingly, MDA Space is increasing the total contract value by $474 million, covering new satellites, the addition of 500 MHz of military Ka-band spectrum (replacing an equivalent amount of commercial Ka-band spectrum) on Lightspeed satellites under construction, and other long-lead items.

This constellation expansion builds on the strategic cooperation agreement signed last year between MDA Space, the Canadian Department of National Defence, and Telesat. That agreement provides connectivity to Canada's Arctic region through the Enhanced Satellite Communication Project – Polar (ESCP-P) initiative, supporting Canadian Armed Forces operations in the area.

Mike Greenley, CEO of MDA Space, stated that reliable military communications in the Arctic are critical to protecting Canadian sovereignty, maintaining situational awareness, coordinating joint operations with allies, and responding rapidly to emergencies in time-sensitive environments. As a Canadian-headquartered space and satellite systems manufacturer, MDA Space is working with Telesat and the Government of Canada to equip the Canadian Armed Forces with advanced capabilities to safeguard national security.

The ESCP-P program will also include a secure Ultra High Frequency (UHF) and X-band constellation in Medium Earth Orbit (MEO). The Government of Canada has announced that MDA Space will serve as the prime contractor responsible for end-to-end mission delivery, and negotiations have commenced to advance the definition and development of UHF and X-band services, with contract details to be disclosed once finalized. Telesat will serve as a subcontractor to MDA Space on this program.

All MDA AURORA™ satellites designed, built, and tested by MDA Space for the Telesat Lightspeed constellation will be equipped with 500 MHz of military Ka-band spectrum as well as commercial Ka-band spectrum to fulfill defense commitments supporting Canada's continental security objectives and its obligations to allies, enabling military communications in high-latitude regions. These satellites will be manufactured at the company's high-throughput production facility in Montreal.

As some long-lead items were previously accounted for, the majority of the $474 million contract increase will be added to the company's backlog in the third quarter of 2026.