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Telesat Acquires SpaceX Launches for Lightspeed Internet Satellites

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Telesat Partners with SpaceX for Lightspeed Internet Satellites

Telesat, a satellite operator, has entered into a significant agreement with Elon Musk's SpaceX to launch its Lightspeed internet satellites. The deal, announced on Monday, includes 14 launches using SpaceX's Falcon 9 rocket, with missions scheduled to begin in 2026. Telesat CEO Dan Goldberg praised the Falcon 9 rocket, highlighting its affordability, reliability, and ability to launch multiple satellites per week.

Expanding Market Opportunities

Despite being competitors in the satellite internet industry, SpaceX has shown a willingness to launch satellites for other companies. Telesat's agreement with SpaceX follows similar partnerships between SpaceX and other companies like OneWeb, Viasat, and EchoStar. This deal comes amidst allegations that Amazon snubbed SpaceX for its Kuiper internet satellites launch contracts.

Financial Terms and Dependable Launches

The financial terms of the Telesat-SpaceX deal were not disclosed. However, based on SpaceX's advertised price of $67 million per Falcon 9 launch, Telesat's purchase could be valued at approximately $900 million. Telesat's decision to partner with SpaceX for launches stems from the need for reliable and timely access to orbit. While Telesat had previously signed an agreement with Blue Origin for its New Glenn rocket, delays in its development prompted Telesat to seek alternative launch options.

Focus on Enterprise Customers

Telesat's Lightspeed internet service is designed to cater to enterprise customers, including government and commercial markets. Telesat aims to maintain its focus on these sectors, which SpaceX's Starlink and Amazon's Kuiper have also expanded into. Telesat's CEO, Dan Goldberg, has emphasized that Lightspeed is not intended to directly compete with Starlink or Kuiper in the direct-to-consumer market.

Recent Manufacturing Swap

Telesat recently announced a change in the manufacturer of its Lightspeed satellites. Canadian space company MDA has replaced the previous manufacturer, Thales Alenia Space, resulting in significant cost savings of approximately $2 billion for Telesat. Goldberg expressed satisfaction with the MDA contract, describing it as a "home run." In conclusion, Telesat's partnership with SpaceX for the launch of its Lightspeed internet satellites reflects the growing demand for satellite internet services. By leveraging SpaceX's reliable launch capabilities, Telesat aims to serve enterprise customers while saving costs through strategic manufacturing changes. This collaboration highlights the evolving landscape of the satellite industry and the importance of strategic partnerships for business growth.

Conclusion: Implications for New Businesses

Telesat's partnership with SpaceX provides valuable insights for new businesses, particularly those in the satellite internet industry.

Strategic Partnerships and Market Opportunities

The willingness of SpaceX to launch satellites for other companies, despite being competitors, underscores the importance of strategic partnerships in expanding market opportunities. For new businesses, this approach can open doors to collaborations that can enhance their market presence and competitive edge.

Reliability and Timely Delivery

Telesat's decision to partner with SpaceX, due to its reliable and timely launch capabilities, highlights the importance of dependability in business relationships. New businesses should strive to establish a reputation for reliability and timely delivery to attract and retain partners and customers.

Cost Savings and Strategic Changes

Telesat's manufacturing swap, which resulted in significant cost savings, demonstrates the potential benefits of strategic changes in business operations. New businesses should be open to making strategic changes that can enhance their efficiency and reduce costs. In conclusion, Telesat's partnership with SpaceX offers new businesses important lessons about the value of strategic partnerships, the importance of reliability, and the potential benefits of strategic changes. By applying these insights, startups can position themselves for success in their respective industries.
Story First Published at: https://www.cnbc.com/2023/09/11/telesat-buys-spacex-launches-for-lightspeed-internet-satellites.html
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