Telesat Business Model Canvas

Telesat actively collaborates with technology and ground infrastructure providers to build out the terrestrial network essential for its satellite services. These partnerships are crucial for integrating satellite capacity with terrestrial networks, ensuring reliable connectivity for customers. For instance, collaborations with companies like Vocus in Australia and Calian are key to developing and deploying critical components such as landing stations, sophisticated network management systems, and strategically located points of presence. These elements are fundamental to delivering seamless and high-quality service to end-users.

These alliances enable Telesat to offer end-to-end solutions, bridging the gap between its advanced satellite technology and the ground-based infrastructure required for data transmission and management. The development of these terrestrial components is a significant undertaking, requiring specialized expertise and investment. By leveraging the strengths of its partners, Telesat can accelerate the deployment of its network and enhance the overall value proposition for its clients.

• Technology Collaborations: Partnerships with technology firms are essential for integrating advanced networking solutions and satellite communication technologies.
• Ground Infrastructure Development: Working with providers like Vocus and Calian ensures the deployment of vital terrestrial components, including landing stations and network operations centers.
• Seamless Service Delivery: These partnerships are fundamental to creating a robust and integrated network that provides reliable and high-speed connectivity.
• Network Management Systems: Collaborations focus on developing and implementing sophisticated systems for monitoring and managing the complex satellite and terrestrial network infrastructure.

Telesat's strategic alliances with enterprise and mobility solution providers are crucial for expanding its market presence. These partnerships, such as the one with Viasat, enable Telesat to offer tailored connectivity solutions for demanding sectors like commercial aviation, maritime operations, and government agencies. This focus allows Telesat to tap into high-value, mission-critical markets where reliable and advanced satellite communication is essential.

These collaborations are vital for extending Telesat's service capabilities and reach. By integrating their satellite technology with the specialized platforms and distribution networks of these partners, Telesat can effectively serve niche markets. For instance, by working with mobility solution providers, Telesat can ensure seamless connectivity for moving assets, a key requirement in industries like global shipping and air travel.

The benefits of these key partnerships are evident in their ability to unlock new revenue streams and strengthen Telesat's competitive position. These relationships allow Telesat to:

• Access specialized market segments: Partnerships provide direct entry into sectors with unique connectivity needs, such as defense and transportation.
• Enhance service offerings: Collaborations enable the bundling of Telesat's satellite capacity with partner-provided hardware, software, and managed services for a comprehensive solution.
• Drive innovation: Working with solution providers fosters joint development of new applications and services tailored to evolving market demands.
• Expand geographic reach: Partners often have established global networks and customer bases, accelerating Telesat's international market penetration.

Spectrum licenses and orbital rights are the bedrock of Telesat's operations, granting the essential authority to transmit and receive signals. These regulatory assets are crucial for both geostationary (GEO) and low Earth orbit (LEO) satellite constellations, ensuring interference-free communication. In 2024, Telesat continued to leverage its extensive portfolio of spectrum licenses across various frequency bands, vital for its global connectivity services.

These rights are not merely permissions; they are valuable, scarce resources that define the operational boundaries and capabilities of satellite networks. Telesat's strategic acquisition and management of these licenses are key to its competitive advantage in the rapidly evolving satellite communications market.

• Spectrum Licenses: Telesat holds licenses in key frequency bands like C-band and Ku-band, enabling a wide range of services from broadcasting to broadband internet.
• Orbital Rights: The company has secured and maintains rights to geostationary orbital slots, providing stable, long-term coverage for its traditional satellite fleet.
• LEO Constellation: For its Lightspeed LEO constellation, Telesat is actively securing the necessary spectrum and orbital assignments to support its advanced global network.

Telesat's competitive edge is deeply rooted in its highly specialized workforce. This includes a cadre of engineers, technicians, and satellite communication experts who possess the intricate knowledge required to design, build, and operate advanced satellite systems. Their collective expertise is crucial for maintaining Telesat's technological leadership and operational excellence.

Proprietary technology and intellectual property form another critical pillar. Telesat has invested heavily in developing unique assets, such as the innovative Lightspeed network architecture. This, combined with advanced software platforms like CNOS (Connectivity Network Operations System), provides significant advantages in network management and service delivery.

• Skilled Workforce: Telesat employs a global team of over 1,000 highly skilled professionals, a significant portion of whom are engineers and technical specialists.
• Intellectual Property: The company holds numerous patents related to satellite technology, network design, and operational software, underpinning its unique service offerings.
• Lightspeed Network: This next-generation LEO satellite constellation represents a substantial investment in proprietary technology, designed for low latency and high throughput connectivity.
• CNOS Software: Telesat's proprietary CNOS platform is a key enabler for managing its complex satellite networks, offering advanced capabilities for dynamic resource allocation and service assurance.

Telesat moves beyond basic customer interactions, cultivating deep, partnership-oriented relationships with major entities in the telecommunications and technology industries. This approach is central to their strategy for mutual advancement and wider market reach.

These collaborations are designed for more than just service delivery; they focus on shared growth objectives and expanding market presence. For instance, Telesat's 2024 initiatives include co-development projects with satellite technology providers to enhance next-generation connectivity solutions.

• Strategic Alliances: Telesat actively forms alliances with leading telecom operators and technology firms to integrate satellite capabilities into broader communication networks.
• Joint Ventures: The company engages in joint ventures to explore new markets and develop innovative services, leveraging the strengths of its partners.
• Co-creation of Solutions: Telesat collaborates with partners to co-create tailored solutions that address specific industry needs, such as enhanced broadband for remote areas.
• Market Expansion: These partnerships are instrumental in Telesat's efforts to expand its global footprint and introduce its advanced satellite services to new customer segments.

Telesat's customer relationships are significantly strengthened by long-term contractual agreements, often spanning multiple years. These contracts provide a predictable and stable revenue base, which is crucial for long-term planning and investment.

This contractual backbone is clearly reflected in Telesat's substantial backlog for both its geostationary (GEO) and low Earth orbit (LEO) satellite services. As of early 2024, Telesat reported a significant backlog, demonstrating the enduring commitment of its customers.

• Stable Revenue: Multi-year contracts secure consistent income, reducing financial volatility.
• Predictability: Long-term agreements offer visibility into future revenue streams, aiding strategic decisions.
• Customer Commitment: A large backlog indicates strong customer loyalty and reliance on Telesat's services.

Enterprise businesses, particularly those operating in sectors like energy, mining, and finance, depend heavily on Telesat for robust data communication and secure corporate network connectivity. These industries often have extensive operations in remote or challenging geographical locations where terrestrial infrastructure is limited or nonexistent, making satellite solutions essential for maintaining business continuity and efficiency. For instance, many resource extraction companies leverage Telesat's services to connect their operational sites, enabling real-time data transfer for monitoring, control, and personnel safety.

Telesat's enterprise customer base is diverse, reflecting the broad applicability of its advanced satellite services. Key segments include:

• Energy Sector: Oil and gas exploration and production companies utilize Telesat for remote site connectivity, pipeline monitoring, and operational command and control.
• Mining Operations: Mining companies rely on satellite links for communication between mine sites, processing plants, and corporate offices, facilitating logistics and data management.
• Financial Institutions: Banks and financial services firms with global or remote operations use Telesat for secure data transmission and backup connectivity.
• Other Industries: This includes transportation, government agencies, and disaster relief organizations that require reliable communication in areas lacking terrestrial networks.

Media and broadcast companies, particularly those offering direct-to-home (DTH) television services, represent a historically significant customer segment for Telesat. These companies rely on satellite capacity for the efficient distribution of video content to a broad subscriber base.

While the DTH market has seen some shifts, it continues to be a vital part of Telesat's revenue. In 2023, Telesat reported that its Broadcast segment, which includes DTH services, generated approximately CAD 490 million in revenue, demonstrating its continued relevance.

• DTH Video Distribution: Core service provided to broadcasters for content delivery.
• Historical Significance: A foundational customer base for Telesat's growth.
• Market Evolution: Adapting to changing media consumption patterns while retaining a core audience.
• Revenue Contribution: Broadcast segment remains a key revenue driver for the company.

Telesat generates significant revenue by securing long-term contracts with government and defense entities worldwide. These agreements are crucial, providing stable, high-value income streams for its secure and critical communication services.

These contracts often involve specialized satellite capabilities tailored to national security and public service needs. For instance, Telesat Canada's government business is a key segment, with a substantial portion of its revenue historically derived from these partnerships.

• Government and Defense Contracts: Telesat's multi-year agreements with national governments and defense organizations are a cornerstone of its revenue.
• Secure Communications: These contracts leverage Telesat's satellite network to provide secure and reliable communication solutions vital for national security and public safety.
• High-Value and Stability: Such contracts typically represent substantial, recurring revenue, offering a predictable financial foundation.
• Global Reach: Telesat serves various government clients across different regions, demonstrating the broad applicability of its services in this sector.

Telesat generates revenue through managed services and custom solutions, offering clients comprehensive support from network design and installation to ongoing maintenance. This segment leverages Telesat's deep technical expertise and integrated capabilities to deliver tailored connectivity. For instance, in 2023, Telesat's focus on these higher-value services contributed to its overall revenue diversification, moving beyond traditional satellite capacity sales.

These offerings are crucial for clients requiring specialized network configurations or facing unique operational challenges. Telesat's ability to develop custom connectivity solutions allows them to address niche market demands, thereby creating additional revenue streams. This strategic approach ensures that Telesat remains a vital partner for businesses seeking robust and adaptable communication infrastructure.

• Managed Network Services: Includes design, deployment, and operational support for complex networks.
• Custom Connectivity Solutions: Tailored solutions addressing specific client requirements, often involving integration of multiple technologies.
• Revenue Diversification: These services provide a stable and growing revenue base beyond traditional satellite transponder leases.
• Leveraging Expertise: Utilizes Telesat's extensive experience in satellite and terrestrial network integration.