Ottawa, ON – The Canadian space economy is growing, but it is vulnerable to foreign competitors who are financially supported by their respective governments.
That was the warning issued during the ‘Exploring the Economic Potential of the New Space Economy’ panel discussion. It was the first session at Space Bound 2024, the annual space conference at Ottawa’s Canadian Museum of Nature September 24-25, 2024. Space Bound 2024 is hosted by Space Canada, the national industry association.
The New Space Economy session was moderated by GZERO Media publisher Evan Solomon. He opened the panel by asking Mike Greenley, CEO of MDA Space, about the nature of the new space economy and why Canada needs to be a part of it. Greenley responded by noting that while the old space economy was driven by government and military projects, the new space economy is very much being dominated by commercial space companies. “The explosive growth of space is coming from the fact that the cost of launch continues to decline,” said Greenley. “As a result of that, space is [now] a successful business market.”
The new space economy is also being spurred on by space-based broadband services, rather than the multichannel TV broadcasts that buoyed the geostationary satellite business of companies such as Telesat. The impact of over-the-top streaming services like Netflix has hurt that geostationary market, noted Dan Goldberg, President and CEO of Telesat. But as the old cliche says, when one door closes, another opens. In the case of satellite services, “it’s the internet,” he said. “Broadband is going through the roof.” This is why Telesat is investing $6 billion into its Lightspeed LEO constellation, and foresees strong growth in this sector in the coming years.
Jacques Leduc, President and CEO of TerreStar Solutions, is similarly bullish about the health of the new space economy, and that of the communications sector in general. He attributed this success to the public’s insatiable demand for internet content and connectivity.
“Our cellphone is our lifeline,” said Leduc. “We don’t go anywhere without it.”
All told, Canada is well-placed to profit from the new space economy, thanks to its long legacy in space and the strength of its space companies, However, the fact that foreign competitors are being funded by their respective governments means that this projected success is not a sure thing. “We’re strong in the sense that we’ve got all these great industrial capabilities, but it’s at risk,” Goldberg warned. “The threats are huge. I worry when we say the industry is strong. It masks the reality that it’s fragile and it needs to be protected.”
To make his case, Dan Goldberg cited the many U.S. government contracts that have helped SpaceX become the powerhouse that it is today. “SpaceX has been the recipient of billions and billions and billions of dollars of funding,” he said. European space companies have received similar support from their governments. Meanwhile, Telesat recently received a $2.14 billion federal loan to help build Lightspeed, with a floating interest rate that is 4.75% above the Canadian Overnight Repo Rate Average.
The bottom line: If Canada wants to thrive in the new space economy, Ottawa needs to step up to support and protect our space industry. “Does it mean a big juicy cheque?” Goldberg quipped. “I wish that it did.”
- Read more coverage from the Space Bound 2024 conference.