The government of Canada has formed a strategic partnership with MDA Space and satellite operator Telesat to develop and provide a multi-frequency Arctic military satellite communications (MILSATCOM) capability for the Canadian Armed Forces (CAF).
The agreement is part of the Enhanced Satellite Communication Project – Polar (ESCP-P), which is led by Canada’s recently created Defence Investment Agency (DIA).
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The ESCP-P is a longstanding initiative designed to improve the ability of the Royal Canadian Air Force (RCAF) and the wider CAF to carry out sovereignty operations in the Arctic and to support national and continental defence requirements.
The project is set to provide secure wideband and narrowband satellite communications, generate high-quality employment nationwide, and bring multi-billion-dollar investment into Canada’s defence industry.
The ESCP-P falls under Canada’s Industrial and Technological Benefits (ITB) policy, which requires that major defence procurements produce economic benefits within the country.
The ITB policy aims to involve stakeholders from all areas of Canada’s space sector, including small and medium-sized enterprises.
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By GlobalDataCanada National Defence Minister David McGuinty stated: “The Enhanced Satellite Communications Project – Polar marks a critical advancement for Canada’s defence and sovereignty, particularly across our Arctic and northern regions. By investing in cutting-edge satellite communications, we are providing the Canadian Armed Forces with secure, resilient and modern capabilities — allowing them to safeguard our airspace, respond quickly to emerging threats and support communities throughout the Arctic and the North.
“This investment also reaffirms Canada’s steadfast commitment to our key partners, including the North American Aerospace Defense Command and the North Atlantic Treaty Organization. And it underscores our determination to meet our sovereign defence objectives as outlined in Canada’s defence policy: Our North, Strong and Free.”
In June 2025, Canada introduced a new defence spending plan that includes an increase of more than C$9bn ($6.5bn) in military investments for the 2025/26 fiscal year.
