Uncategorized
First No And Now Yes, Ontario Pauses Threat To Musk’s $100M Starlink Deal As Trump Offers Tariff Concessions – Why The EU Wants To Wean Itself Off Musk’s Projects
Ontario has decided to hold off on its threat to cancel the $100 million Starlink deal with Elon Musk after the Trump administration offered a last-minute reprieve by postponing tariffs on Canada for a month. This pause in tensions marks a sudden shift in what seemed like an inevitable breakdown in trade relations between Canada and the U.S. over a deal that had a major space-age flavor to it.
Initially, Ontario Premier Doug Ford was fired up and ready to rip up the contract with Musk’s Starlink. His anger was directed squarely at the U.S. under the leadership of Trump, who had threatened to slap a 25% tariff on Canadian goods. Ford’s stance was firm—Canada wouldn’t do business with U.S. companies if the U.S. was going to impose such retaliatory tariffs, especially if those companies were backed by Trump.
Ford’s message was clear enough, Canada didn’t instigate this conflict, but it was prepared to stand its ground. “They only have President Trump to blame,” he added, signaling that U.S. companies shouldn’t have access to the procurement funds Ontario regularly dishes out, especially when relations with the U.S. were teetering on the edge.
However, in a move that many observers saw as a win for diplomacy, outgoing Canadian Prime Minister Justin Trudeau had a “good call” with Trump, during which the two leaders agreed to delay the tariffs. This development gave Ontario the chance to ease off on its retaliatory measures, including the halt on the Starlink deal. Despite the break in tension, Ford didn’t completely close the door on future measures if the tariffs were imposed down the line.
Trudeau also added that Canada would take proactive steps, such as implementing a $1.3 billion border security plan, aiming to beef up efforts to deter illegal drugs and immigration. For Ford, the delay on tariffs was a positive turn. His office confirmed that retaliatory actions against U.S. companies, including Starlink, would be paused, but he cautioned that Canada’s trading relationship with the U.S. remained unstable.
Ford’s parting shot, though, sent a message to both Trump and the rest of the world: “So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen.” He called on both Canada and the U.S. to focus their energies on the real global economic challenge – China. In his words, “If we want to win, we need to fight together – not each other.”
The EU’s Growing Antagonism Toward Musk’s Projects. Can They Break Free?
While Ontario and Canada have decided to ease off the throttle on Musk’s $100 million deal, across the Atlantic, the European Union (EU) is increasingly becoming wary of its dependence on Musk’s space ventures. The EU, already facing its own web of geopolitical tensions, is ramping up efforts to lessen its reliance on Musk’s Starlink and SpaceX projects.
Musk’s satellite internet empire, Starlink, has become a major player in global satellite communications, but now, European companies are pushing back, launching ambitious projects to challenge his dominance in the skies.
One company, in particular, is making waves in the satellite communication industry—Vodafone. In a groundbreaking move, Vodafone has just pulled off the world’s first satellite video call using a standard 4G/5G smartphone. No fancy hardware required, just a regular smartphone and satellite technology.
The call was made from the remote mountains of Wales, where terrestrial mobile networks are a no-show. This achievement could be a game-changer for satellite communications, posing a direct challenge to Starlink’s already established network.
Vodafone’s success in conducting a satellite video call using just a 4G/5G smartphone is no small feat. For the first time, users in remote areas—without access to traditional cellular networks—can make video calls via satellite. Vodafone CEO Margherita Della Valle described the achievement as a major leap in satellite connectivity. It’s a step forward in bringing satellite services to places that were once considered too far off the grid for reliable communication.
And this is just the beginning. Vodafone has plans to roll out its satellite services across Europe by 2026, a move that is expected to shake up the competition in the satellite internet space. While Musk’s Starlink is already well-established in the U.S. and other parts of the world, Vodafone’s early success in satellite video calling means that Starlink now has some serious competition on its hands in Europe.
Starlink Faces New Rivals in Europe
Currently, Starlink is partnering with T-Mobile in the U.S. to test its “direct-to-cell” satellite technology, which allows users to make calls via satellite even in the absence of a ground network. This technology is seen as a lifesaver in emergency situations or remote areas. Some devices, like Apple and certain Android phones, already support the service, though the global rollout is still in progress. Starlink is also expanding its operations in India, where it recently received government approval to launch broadband services.
But Vodafone’s innovative leap into satellite video calls has raised the stakes. While Starlink continues to dominate in terms of satellite internet service, the pressure is mounting. Vodafone’s move could redefine how satellite services are delivered, especially if they expand quickly across Europe.
The EU’s Big Move. IRIS2 Satellite Project
The EU isn’t sitting idly by while the U.S. and private companies like SpaceX make waves in space. In fact, the European Union is now putting its foot down and planning to take its security and satellite communication capabilities into its own hands. Enter the IRIS² project, the EU’s largest satellite initiative to date. The project will see around 300 satellites launched into medium and low Earth orbits, creating a robust satellite network that can support everything from secure communications to digital services.
But is the EU’s IRIS2 project too little, too late? After all, SpaceX’s Starlink already boasts over 7,000 satellites in orbit, with plans for more than 30,000 in the coming years. Meanwhile, China is planning to launch 1,000 satellites by 2024 and has ambitions for even more in the next few years.
The EU’s IRIS2, while ambitious, seems like a small player; however, for the EU this isn’t just about numbers; it’s about taking control of its own future.
Why Europe Needs Its Own Satellites
The need for Europe to develop its own satellite network became even clearer during the Russia-Ukraine war. In 2022, Musk’s Starlink system provided critical communication support to Ukraine’s military, ensuring high-speed internet access during the conflict. While this undoubtedly helped Ukraine maintain communications, it also raised concerns about Europe’s reliance on a private American company for such critical infrastructure.
Countries don’t want their vital communications to be at the mercy of private corporations, especially when geopolitical tensions are at an all-time high. The Ukraine crisis highlighted the vulnerabilities of depending on foreign-controlled space technology, and the EU is now determined to develop its own satellite network to protect its communications from external interference.
Public Opinion in the EU
It’s not just about technological competition. Elon Musk’s controversial comments and actions have made him less popular in Europe, particularly in the UK and Germany. Around 70% of Brits and Germans disapprove of Musk’s recent interventions in global affairs, with many viewing his statements as uninformed and unacceptable. In fact, Musk’s outspoken nature and tendency to involve himself in national and international politics have only fueled the negative perception in these countries.
As a result, the EU is more determined than ever to reduce its dependency on Musk’s projects. The IRIS2 initiative is a part of this broader push for independence and self-sufficiency in space technology. By developing its own satellite network, Europe hopes to avoid being beholden to Musk’s whims or any other foreign entity for critical infrastructure.
The Space Race Heats Up: US vs. China vs. EU
With the space race in full swing, the EU finds itself in a race to catch up with both the U.S. and China. SpaceX’s Starlink, along with China’s ambitious plans for a thousand satellites, has set the bar high. The EU, however, is not about to let itself fall behind. The IRIS² project, though smaller than Starlink’s vast constellation, could provide Europe with the means to ensure its digital sovereignty and national security.
The challenge, however, is convincing the public that billions of euros should be spent on space projects when there are more immediate issues at hand. Despite this, European space companies are eager to catch up in the space race and ensure that Europe doesn’t fall behind the U.S. or China in satellite technology. The next few years will be crucial as the EU pushes forward with the IRIS² project and works to make its vision of space independence a reality.
The Last Bit
