Defence Minister Peter MacKay

The federal government will spend more than $337 million on military satellites designed to help soldiers in the field stay informed, and keep government information secret.

Defence Minister Peter MacKay said Tuesday that by joining the $10-billion Global Wideband Satellite program, or Mercury Global, Canada will be able give soldiers in the field real-time analysis as events unfold anywhere around the globe.

The federal government will spend $337.3 million to buy Canada 20 years of access to the satellite network, effective immediately, and fund the construction of one of 10 satellites planned for the network.

The deal is the culmination of two years study by the Department of National Defence to determine its long-term satellite communication needs.

The announcement is an indication that the government sees Canadian troops continuing to deploy to hot spots around the globe as Boeing, the company in charge of developing the satellite system, says Mercury Global provides "a quantum leap in communications capabilities for the warfighter."

"Quite frankly, I believe the world needs more Canada and needs Canada to continue to play an active role," MacKay said in his prepared remarks.

Canada will no longer lease bandwidth from commercial satellites, which cost taxpayers $25 million annually, according to figures from the Department of National Defence. Based on those figures, leasing commercial bandwidth would cost taxpayers $500 million over 20 years, about $163 million more than the deal signed Tuesday.

While cost factored into the decision, so, too, did protecting government information, an issue that arose this week after espionage charges against a naval intelligence officer.

"Evolving requirements and the need to ensure security — security of information — have necessitated the Canadian Forces move to a more exclusive network," MacKay said. "We're ensuring that the data vital to the well-being and safety of Canadians remains protected."

An order-in-council in October authorized MacKay to spend up to $477 million on the satellite program, but the final cost was $140 million less than expected.

MacKay said the 10 satellites are planned to all be in orbit by 2017, 10 years after the first satellite went into space.

Three satellites are already in orbit with a fourth scheduled to be launched this week. A fifth satellite is scheduled to be launched by the end of the year, according to the Department of National Defence.

The program has seen cost overruns. So far, the U.S. has spent about $4.9 billion on the three satellites in orbit, more than the $1.3 billion originally planned for six satellites.

Boeing will match Canada's investment in the satellite program with a $240-million investment in Canadian industry. One-fifth of that will be invested in Canada's space sector, according to the Department of National Defence, and 10 per cent will be invested in small- and medium-sized businesses.

This article by Jordan Press, Postmedia News can be found here, at The Vancouver Sun.