Thank you for that. It's a hugely important question.
The reality is that on the one hand, we operate these satellite constellations; they provide service to consumers and you think that's kind of the end of the picture. On the other hand, space is strategic and governments are very actively participating in the development of space and of technologies that fly in space, to space and that access space.
If you look at these LEO constellations, they're a great example of the important strategic dimensions and the role that government has to play here. It's certainly the case and it's obvious that when the Russians or the Chinese—even when the Government of India—are participating in the space sector, they're doing it with their state-owned companies. They've taken a strategic decision. Space is important. Space has implications in terms of their ability to look after their citizens and also for national security implications. They're making heavy investments.
The same is true of the U.S. I take my hat off to what SpaceX has developed. Listen to what Ms. Cooper has said. Ms. Cooper accurately said that because of their ability to launch satellites, they're vertically integrated. It gives them some advantages in terms of deploying a LEO constellation and going the next level. It didn't happen by accident. The Obama administration made a very conscious, strategic decision to move the U.S. away from launching the space shuttle all by itself and relying upon U.S. commercial industry to develop a capability. SpaceX rose to that challenge and answered the mail. In doing so they've received billions of dollars to help them develop those rockets, develop the Dragon capsule that we all witnessed last night, and now to develop low-earth orbit satellites and the like. That's an enormous advantage to them.
Yes, on a smaller scale, the $600-million capacity agreement that we did with the Government of Canada was vital to try to help Telesat compete against these behemoths—not just the companies, but the governments—and try to be competitive in this sector.
I think we're going to get there. It is a space race. It's an extremely strategic area. It's not only Russia, China and India. It's the United States. It's the Europeans. It's the U.K. backing OneWeb. If space is important to Canada, then Canada is going to need to open its eyes wide, look at what's going on in the world and participate in this area.
Canada has been doing that, but to beat the drum one more time, this proceeding that is taking place at ISED right now is crucial. It's existential to Telesat and to our plans to invest in LEO and to compete globally.