Ontario Cancels $68 million Starlink Contract Over Trump Tariffs

The Ontario government has decided to cancel its $68 million contract with Starlink, a satellite internet service provider. The main reason for this decision stems from the impact of American tariffs on technology imports, which significantly increased project costs.

The contract was signed in 2021 with the aim of providing broadband internet to remote and underserved areas of the province. However, changes in the trade policy of the United States, instituted by President Donald Trump, rendered the project economically unfeasible. The rise in expenses for equipment and maintenance forced the province to seek alternative ways to connect remote communities.

Ontario government officials stated that the cancellation of the Starlink contract was a necessary measure and clarified that they would continue to seek alternative methods to solve the problem of internet absence in hard-to-reach areas. Authorities need to pay special attention to local providers who may offer more sustainable and cost-effective solutions for residents of remote territories.

The decision to cancel the contract is part of a broader provincial policy aimed at reducing dependence on foreign technologies and developing home-grown solutions for improving communication infrastructure in Ontario. New initiatives for internet improvement are expected to be presented by the government in the coming months.

Local observers note that walking away from contracts with large technology companies is a risky move that could affect plans for modernizing computer networks in hard-to-reach areas. Nevertheless, the government assures that avoiding unfeasible expenses is a necessity in the current economic situation.

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