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Highlights

  • Telesat and Arabsat agree on multi-Gbps capacity pool using Lightspeed LEO network
  • Definitive agreements expected by December 2025 following term sheet execution
  • Connectivity aimed at enterprise, telecom, government, and mobility sectors across four regions

Telesat (NASDAQ & TSX: TSAT) and the Arab Satellite Communications Organization (Arabsat) announced the signing of a Term Sheet agreement for a multi-Gbps pool of capacity on Telesat’s Lightspeed Low Earth Orbit (LEO) network. The signing took place during the CABSAT 2025 event in Dubai and marks a key step forward following their 2024 Memorandum of Understanding.

The agreement outlines the framework for integrating Telesat’s LEO connectivity services into Arabsat’s multi-orbit satellite infrastructure. The services will be supported by Committed Information Rates (CIRs) and formal Service Level Agreements (SLAs), targeting enterprise, telecom, government, and mobility markets. The parties aim to finalize definitive agreements by the end of 2025.

This development is part of Arabsat’s broader multi-orbit strategy, which combines Geostationary Orbit (GEO) and LEO capabilities to enhance service flexibility and coverage. Telesat Lightspeed will provide Arabsat with enhanced control and service design through its lifecycle orchestration systems, adding value to Arabsat’s offerings in the Middle East, Africa, Europe, and Central Asia.

While financial specifics of the agreement were not disclosed, the deal is expected to have future implications for Telesat's revenue growth as Lightspeed services begin commercial operations. It also signals a shift in satellite operators’ strategic focus toward hybrid, multi-orbit networks that can address varied latency and bandwidth requirements.

The agreement positions both companies to respond to growing demand for high-throughput, low-latency satellite communications. With satellite-based broadband gaining relevance in underserved and remote markets, the finalized deal may impact competition in the global satellite broadband market.