OTTAWA — The federal government has signed a deal to invest $1.44 billion in Telesat's advanced low Earth orbit satellite constellation, Telesat Lightspeed. 

The government says the technology will help provide high-speed internet access in rural and remote parts of the country.

The investment includes a $790-million repayable loan and a $650-million preferred share equity investment.

The government will also receive warrants that can be converted into Telesat common shares.

The government says Telesat has committed to invest $3.6 billion in capital expenditures in Canada as well as maintain up to 700 jobs.

The company will also support post-secondary students through 100 co-op jobs and $800,000 in scholarships, with a focus on women in STEM programs.

"With the funding announced today and other financing sources already in place, including the previously announced investment by the government of Quebec, Telesat now has arrangements for approximately $4 billion in funding for the program," Telesat CEO Daniel Goldberg said in a statement.

"We expect to secure in the near term the remaining financial commitments required to fully finance Telesat Lightspeed."

This report by The Canadian Press was first published Aug. 12, 2021.

The Canadian Press