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Canada signed a partnership to develop a multibillion dollar military satellite system with the country’s biggest satellite operator, Telesat Corp., and its biggest space technology manufacturer, MDA Space Ltd.

Both Ontario-based companies said Tuesday they would create a multi-frequency Arctic military satellite network for the Canadian Armed Forces. Procurement for the project will be led by a defense investment agency started by Prime Minister Mark Carney in October and led by former Royal Bank of Canada executive Doug Guzman.

The system is called Enhanced Satellite Communications Project – Polar. The exact amount of the investment was not disclosed.

The companies said the new capability would boost the country’s sovereignty over its vast Arctic, enhancing the air force and wider armed forces’ abilities. It bolsters Canada’s commitments to North American Aerospace Defense Command, Norad — the joint military command with the US — and the North Atlantic Treaty Organization, Telesat said.

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