A. History and Development of the Company Telesat, as it exists today, is the result of the 2007 combination of Telesat Canada and Loral Skynet, although the company’s history dates to 1969, when the Canadian Parliament passed the Telesat Canada Act. In 1972, Telesat Canada launched the world’s first domestic commercial satellite in geostationary orbit and the Company has been a pioneer and leading innovator in satellite communications ever since. Telesat Canada launched the first commercial Ku-band satellite (officially, the DTH satellite television service) in 1978, Canada’s first direct broadcast satellite (“DBS”) in 1999 and the world’s first consumer 2-way Ka-band broadband internet service via satellite in 2004. Since the mid-1970s, Telesat Canada has provided advanced satellite services for voice, data and broadcast communications in the Americas, including in Canada’s far North. Loral Skynet traced its history to two early companies in the U.S. satellite communications industry: AT&T Skynet and Orion Satellite Corporation (“Orion”). AT&T Skynet and its predecessor organizations in AT&T’s Bell Laboratories effectively launched the commercial satellite communications industry by demonstrating the first trans-Atlantic satellite delivery of television on Telstar 1 in 1962. Through the 1970s, 1980s and 1990s, AT&T Skynet provided state-of-the-art telephone and television services in the U.S. for AT&T, as well as video distribution and contribution services for U.S. broadcasters and cable operators using the Comstar and Telstar series of satellites. Orion was formed in 1988 for the purpose of providing international data services. In 1994, Orion launched Orion 1, which provided early trans-Atlantic services between the U.S. and Europe. Orion was the second U.S. licensed “separate system” authorized to compete directly with the intergovernmental organization INTELSAT for certain types of international satellite services. In 1997, AT&T Skynet was acquired from AT&T by LSC Holdings, became Loral Skynet, and expanded its focus from the U.S. to become a global satellite operator. Orion was acquired by LSC Holdings in 1998, and its operations were integrated with those of Loral Skynet in 1999. On October 31, 2007, PSP Investments and Loral acquired 100% of the stock of Telesat Canada from BCE Inc., Canada’s largest communications company (the “Skynet Transaction”). Following the Skynet Transaction, the Loral Skynet and Telesat Canada businesses and assets were combined. On November 18, 2021 and November 19, 2021, Telesat Corporation, a corporation incorporated under the laws of the Province of British Columbia, Canada on October 21, 2020, along with the other parties to the Transaction Agreement consummated the Transaction. See “Related Party Transactions — The Transaction”. Telesat Corporation is the general partner of Telesat Partnership LP, which was formed under the Limited Partnership Act (Ontario) on November 12, 2020. Telesat Corporation directly or indirectly own 100% of all of its operating subsidiaries. The Transaction was effected in accordance with the Transaction Agreement through a series of transactions, including: (i) on November 18, 2021, Red Isle contributing 272,827 Telesat Canada Non-Voting Participating Preferred Shares to Telesat in exchange for Class C Fully Voting Shares of Telesat and the balance of its equity interest in Telesat Canada to Telesat Partnership in exchange for Class C Units of Telesat Partnership; (ii) on November 18, 2021 and pursuant to stockholder contribution agreements, the contribution by current and former members of management of Telesat Canada of their Telesat Canada Non-Voting Participating Preferred Shares to Telesat in exchange for newly issued Class A Common Shares of Telesat if such contributing shareholder is Canadian (as such term is defined in the Investment Canada Act) or newly issued Class B Variable Voting Shares of Telesat if such contributing shareholder is not Canadian (as such term is defined in the Investment Canada Act); (iii) on November 18, 2021 and pursuant to the director contribution agreement, the contribution by John Cashman and Clare Copeland of their Telesat Canada Director Voting Preferred Shares to Telesat Partnership in exchange for interests in Telesat Partnership, which were subsequently redeemed by Telesat Partnership for cash on November 19, 2021; (iv) on November 18, 2021 and pursuant to option holder exchange agreements, the exchange of options, tandem stock appreciation rights and restricted stock units in respect of Telesat Canada for corresponding instruments in Telesat with the same vesting terms and conditions; and (v) on November 19, 2021, the merger of Merger Sub with and into Loral, with Loral surviving the Merger as a wholly owned subsidiary of Telesat Partnership and the other Loral stockholders receiving shares of Telesat or units of Telesat Partnership as described below. 46 Table of Contents Under the terms of the Transaction Agreement, at the Effective Time, each share of Loral common stock outstanding immediately prior to the Effective Time was converted into the right to receive (a) if the Loral stockholder validly made a Unit Election, one newly issued Class A Unit of Telesat Partnership if such Loral stockholder was Canadian (as such term is defined in the Investment Canada Act), and otherwise one newly issued Class B unit of Telesat Partnership, (b) if the Loral stockholder validly made a Shares Election, one newly issued Class A Common Share if such Loral stockholder was Canadian (as such term is defined in the Investment Canada Act), or (c) if the Loral stockholder validly made a Shares Election and was not Canadian, or did not validly make a Unit Election or a Shares Election, one newly issued Class B variable voting share. Following the Transaction, Telesat Canada became an indirect wholly owned subsidiary of Telesat. In addition, on November 18, 2021, Telesat entered into the trust agreement and trust voting agreement with Telesat Partnership, TSX Trust Company as the trustee of Telesat Corporation Trust and, in the case of the trust agreement, the settlor of the trust, effectuating the voting trust relating to the voting rights of units of Telesat Partnership. Following the completion of the Transaction, our authorized share capital includes Class A Common Shares, Class B Variable Voting Shares, Class C Fully Voting Shares, Class C Limited Voting Shares, a Class A Special Voting Share, a Class B Special Voting Share, a Class C Special Voting Share, the Golden Share and Class A Preferred Shares. The Special Voting Shares and the Golden Share have no material economic rights. The Telesat Public Shares commenced trading on the Nasdaq Stock Market and the Toronto Stock Exchange under the ticker symbol “TSAT” on November 19, 2021. The Telesat Partnership Units are not listed on an exchange. In March 2022, Telesat established Telesat Government Solutions (TGS), a wholly-owned subsidiary of Telesat Canada. TGS has been approved by the U.S. Government Defense Counterintelligence and Security Agency as a Foreign Ownership, Control, or Influence-mitigated entity and operates under a Special Security Agreement with the U.S. Government. In September 2025, Telesat Canada distributed 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. The indirect subsidiary is wholly-owned by Telesat Canada’s parent entities and is a Non-Guarantor under Telesat Canada’s debt documents. Our fiscal year ends on December 31 of each calendar year. Our agent for service of process in the United States is Puglisi & Associates, whose address is 850 Library Avenue, Suite 204, Newark, Delaware 19711. The registered office of Telesat Corporation is located at 200 Burrard St. #1200, Vancouver, BC V7X 1T2 and our head office is located at 160 Elgin Street, Ottawa, Ontario, Canada K2P 2P7. The head office of Telesat Partnership is located at 160 Elgin Street, Ottawa, Ontario, Canada K2P 2P7. Our telephone number at our head and registered office is (613) 748-8700. Our website address is https://www.telesat.com. Information contained on, or accessible through, our website is not part of this Annual Report and the inclusion of our website address in this Annual Report is an inactive textual reference. Additional Information on the Company The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at https://www.sec.gov. Our filings with the SEC can be accessed free of charge at this website. B. Business Overview The following discussion of the business of Telesat is qualified by reference to, and should be read in conjunction with, the “Risk Factors” starting on page 8 of this Annual Report. Business Overview Telesat is a leading global satellite operator, providing its customers with mission-critical communications services since the start of the satellite communications industry in the 1960s. Through a combination of advanced satellites and ground facilities and a highly expert and dedicated staff, our communications solutions support the requirements of sophisticated satellite users throughout the world. Throughout our lengthy operating history, we have demonstrated a deep commitment to customer service and led the way on many of the industry’s most ground-breaking innovations. 47 Table of Contents After decades of developing and successfully operating our GEO satellite services business, we are building what we believe will be one of the world’s most advanced constellations of LEO satellites and integrated terrestrial infrastructure, called “Telesat Lightspeed” — a state-of-the-art network designed to provide global broadband connectivity to enterprise and government customers. Telesat Lightspeed has the potential to dramatically increase the Company’s addressable market and significantly expand its growth potential. Industry Overview and Trends We compete in the market for the provision of voice, data, video and internet connectivity services worldwide. Services of this type are provided using various technologies, including satellite networks. We provide communications links between fixed points on the earth’s surface, referred to as point-to-point services, and from one point to multiple points, referred to as point-to-multipoint services. We also provide services to mobile platforms, such as ships and airplanes. Over the last several decades, deregulation and privatization have significantly reshaped the satellite sector. In addition, the sector has undergone consolidation, with regional, national and global operators being acquired by larger companies or seeking to partner with other providers. There have also been many new, smaller entrants, including many governmental operators, launching national or regional satellite programs. More recently, non-geostationary satellite systems have been announced and are in various stages of development, deployment and operation. Satellite Systems A generic satellite system consists of a space segment and an earth segment. The “space segment” is comprised of the satellites and the Telemetry, Tracking and Control (“TT&C”) systems and facilities used to control and monitor the satellites. The “earth segment” is made up of all of the communication earth stations and other devices that access operational satellites. A satellite has two primary subsystems: the communications payload and the spacecraft bus. In its simplest form, the communications payload consists of components that receive the signals from earth and process them for transmission back to earth or to another satellite via an intersatellite link. The spacecraft bus is essentially comprised of all of the non-communications equipment, including the electrical and TT&C subsystems, the propulsion and thermal subsystems and the spacecraft structure itself. GEO satellites circle the earth from orbital locations approximately 22,300 miles (35,700 kilometers) above the equator. The speed at which they orbit the earth corresponds to the speed of the earth’s rotation. As a result, each GEO satellite appears fixed over a geographic area and in essence “blankets” that area with its signals, and an earth station antenna located in that area can communicate continuously with a particular satellite if it is pointed to, and has an unobstructed view of, that satellite’s orbital location. An individual satellite can be designed to communicate with major portions of the earth via large, geographically dispersed beams, to focus its coverage more specifically on particular markets or regions through regional or spot beams, or to use a portion of its total capacity for each type of coverage. The non-geostationary orbit, or NGSO, includes satellites operating in LEO, with an altitude typically between 200 and 870 miles (325 to 1,400 kilometers) and satellites operating in Medium Earth Orbit, or MEO, that is between the LEO and GEO orbits. Unlike geosynchronous satellites that operate in a fixed orbital location above the equator, LEO and MEO satellites travel around the earth at high velocities requiring antennas on the ground to track their movement. LEO satellite systems offer a number of advantages over GEO satellites to meet growing requirements for broadband services, both consumer and enterprise, by providing increased data speeds and capacity, global coverage, and latency on par with or, in some circumstances, better than terrestrial services. Our Competitive Strengths Telesat continues to be at the forefront of the satellite services industry, leading with outstanding customer service and a culture of engineering excellence and technological innovation. We are leveraging this experience as we build our Telesat Lightspeed constellation with the aim of creating a transformative and industry-leading fiber-like broadband network from space for commercial and government users globally. Today, we have a leading GEO business with satellites occupying attractive orbital locations delivering services to hundreds of customers worldwide. The average expected remaining commercial life of our satellite fleet is approximately four years. Additionally, we currently have a fleet utilization rate of 59%. 48 Table of Contents The following competitive strengths characterize our business today and provide a strong foundation for Telesat Lightspeed: Leading Global Satellite Operator with Over 55 Years of Heritage and a Blue Chip Customer Base We are a leading global satellite operator with over 55 years of operating experience. Our GEO satellite fleet is comprised of 14 satellites and offers global satellite coverage with a concentration over the Americas. Through our deep commitment to customer service and focus on innovation and engineering excellence, we have developed strong and long-standing relationships with a diverse range of customers globally. Commercial Success and Industry-Leading Engineering Expertise Driving Continuous Innovation and Advancement We have a long-standing track-record of innovation, “firsts,” and commercial success in the global satellite industry, guided by one of the most experienced management teams in the industry. Our deep technical expertise and commercial focus has enabled us to pioneer many of the industry’s most ground breaking innovations and commercial successes, including: 1962 Telstar 1, built by Telesat’s predecessors at AT&T and Bell Laboratories, successfully delivered the first live intercontinental satellite TV transmission between Europe and the United States; 1972 Telesat launched Anik A1, the world’s first commercial domestic communications satellite in geostationary orbit; 1978 Telesat launched the first commercial Ku-band satellite on which was offered the first DTH television service, laying the groundwork for the global DTH industry; 1981 Telesat co-located two satellites in a single orbital slot for the first time, now a widely-used industry practice; 1996 Telesat was the first to provide internet access to Internet Service Providers (“ISPs”) over satellite; 2004 Telesat launched Anik F2, the first satellite to successfully commercialize DTH consumer Ka-band broadband services; 2009 Telesat launched Telstar 11N, the first satellite to provide Ku-band coverage of the Atlantic Ocean from the Arctic Circle to the Equator; 2013 Telesat launched Anik G1, the first commercial satellite with substantial X-band coverage of the Pacific Ocean, including Hawaii, to serve government users; 2015 Telesat launched Telstar 12 VANTAGE, the first satellite combining high-throughput satellite (“HTS”) spot beams and conventional broad beams, giving customers the ability to maximize throughput, lower cost per bit and meet growing demand for bandwidth intensive applications; 2018 Telesat launched its Phase 1 LEO satellite (“LEO 1”), the start of Telesat Lightspeed, leveraging Telesat’s innovative, patented design, and provided the first high-speed broadband connectivity from LEO; 2019 Telesat conducted the world’s first 5G backhaul demonstration over LEO satellite in partnership with Vodafone and the University of Surrey; 2020 Telesat and the GoC finalized $600 million agreement to bridge Canada’s digital divide with Telesat’s Low Earth Orbit satellite constellation; 2023 Telesat successfully launched another Phase 1 LEO satellite (“LEO 3”) that is currently being used for innovative demonstration purposes; 2023 Telesat contracts MDA Ltd. as prime satellite manufacturer for its advanced Telesat Lightspeed LEO constellation; 49 Table of Contents 2024 Telesat secured funding from the Canadian federal and Quebec provincial governments in the combined amount of approximately US$2 billion. This funding, combined with Telesat’s own approximately US$1.6 billion equity contribution, as well as certain vendor financing, provides the Telesat Lightspeed program with sufficient funds to launch global service; 2024 Telesat, in collaboration with the European Space Agency (ESA), reported a groundbreaking milestone in telecommunications technology by successfully establishing the world’s first 3GPP Non-Terrestrial Network (NTN) link over Low Earth Orbit (LEO) in the Ka-band between the ESTEC 5G Laboratory and the Telesat LEO 3 satellite; 2025 Telesat secures substantial multi-year contract with Viasat for Telesat Lightspeed services; 2025 Telesat entered a strategic partnership with the GoC and MDA Space to develop and deliver a multi-frequency, Arctic military satellite communications capability to the Canadian Armed Forces; and 2026 Telesat announced the addition of Mil-Ka frequences to its advanced Telesat Lightspeed network to meet the anticipated global demand for mission critical Mil-Ka capacity in LEO. We believe our accumulated experience and expertise in the design, procurement, launch, operation and commercialization of satellites and satellite networks is unparalleled and will continue to drive our success into the future. Positioned to Provide Global Broadband Connectivity with Telesat Lightspeed We are positioned to provide global broadband internet connectivity to enterprise and government customers with Telesat Lightspeed, which we believe will be one of the world’s most advanced constellations of LEO satellites and integrated terrestrial infrastructure. Our Telesat Lightspeed architecture is designed to offer a powerful combination of capacity, speed, security, reach, flexibility, resiliency and affordability, with low latency that is on par with terrestrial networks. We have strong government participation, including an anchor contract with the GoC for $600 million over 10 years. Portfolio of Strategic and Valuable Orbital Real Estate Our GEO satellites occupy orbital locations that provide us with an advantageous position in the markets in which we operate. Access to these orbital locations, coupled with the high capital intensity of the satellite industry, creates barriers to entry in those markets. We are licensed by ISED to occupy a number of key orbital locations that are well-suited to serve the Americas and support our strong position in North America. Internationally, our satellites occupy advantageous orbital locations that enable broad pan-regional service with interconnectivity between regions, promoting both intra- and inter-regional services. We also have rights to additional spectrum, including at certain existing orbital locations. We have decades of experience in obtaining and maintaining the licenses and approvals required to operate our existing global satellite and ground station network. We have secured a license from the GoC to launch and operate Telesat Lightspeed using ~4 GHz of Ka-band spectrum, for which Telesat has international spectrum rights in accordance with filings made through the International Telecommunication Union. Ka-band spectrum is particularly well suited for high performance global broadband networks because it allows wider bandwidth, high data and efficient frequency reuse for user-beam services, as well as the feeder-link beams required to connect the satellites to landing stations. As described in the “Regulation” section below, we have received a number of licenses and approvals for Telesat Lightspeed and are progressing in securing market access in additional countries. 50 Table of Contents Contracted Revenue Backlog and Disciplined Management Supports Strong Revenue Visibility Because of the mission-critical nature of our services and long-term contractual agreements, we have significant revenue visibility. Our GEO contracted revenue backlog is $0.8 billion as at December 31, 2025. We have entered into customer agreements to provide service on Telesat Lightspeed that aggregate to $1.0 billion in cash inflows as at December 31, 2025. For the last three years, we have had, on average, approximately 80% of each year’s total revenue already under contract at the beginning of the year. 100% of our backlog is non-cancellable or cancellable on economically prohibitive terms, except in the event of a continued period of service interruption or, in the case of Telesat Lightspeed, a delay in service commencement. We generate attractive operating margins. For the year ended December 31, 2025, we generated an Adjusted EBITDA of $220.8 million, representing an Adjusted EBITDA margin of 52.8%1 which has decreased in recent years but we expect it to rebound as Telesat Lightspeed enters commercial service. Our Growth Strategy We plan to grow our business and profitability by supporting our existing customers and services and by building and deploying Telesat Lightspeed. Telesat Lightspeed is a highly advanced, global, enterprise-grade, integrated satellite and terrestrial network optimized to capture the growing demand for broadband connectivity in certain key market verticals around the world. Core to our growth strategy is leveraging our longstanding customer relationships, our deep technical, operating and regulatory expertise and our culture of outstanding customer service and continuous innovation. The principal elements of our growth strategy are the following: Capture the Explosive Demand for Global Broadband Connectivity with Telesat Lightspeed Telesat Lightspeed has been designed to provide fast, affordable, reliable and secure broadband connectivity everywhere on Earth, giving Telesat and our customers a significant competitive advantage in the markets we serve. The network design is optimized to serve enterprise and government users that require fiber-like connectivity beyond the reach of high-capacity terrestrial networks. We believe our advanced constellation design, leading network capabilities and decades of deep commercial, technical, operational and regulatory experience put us in a strong position to capture the growing demand for affordable, high-capacity broadband connectivity around the world allowing us to grow our business. ____________ ​1 Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS Accounting Standards measures. For the definition and a reconciliation of Non-IFRS Accounting Standards measures, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-IFRS Accounting Standards Measures”. 51 Table of Contents Follow a Disciplined GEO Satellite Operating Strategy We will continue to seek to maintain the utilization of our existing GEO satellite capacity, maintain our operating efficiency and, in a disciplined manner, use our cash flows to strengthen our business. We will continue to be disciplined in our satellite replacement and expansion program, seeking to secure high-quality, long-term customers to anchor any new or replacement geostationary satellites in advance of committing to the construction of such satellites, should such opportunities arise. Opportunistically Engage in M&A Activity to Enhance our Competitive Position and Shareholder Value The satellite industry has, historically, undergone periods of consolidation, both horizontal and vertical. A number of satellite operators have publicly discussed the benefit of, and potential for, consolidation among satellite operators. Our competitor and global satellite operator, SES, has acquired another global satellite operator, Intelsat. Viasat has acquired Inmarsat, a leading provider of global mobile satellite communications services, and Eutelsat has acquired OneWeb. We will be alert to, and will evaluate, merger and acquisition opportunities in a thoughtful and disciplined manner as they arise with the aim of enhancing our competitive position and shareholder value. Our GEO Business and Our LEO Opportunity Below, we describe in detail our existing GEO business and the compelling opportunity presented by our Telesat Lightspeed network. Background and Overview of Our GEO Business Satellite operators compete with terrestrial network operators (e.g., cable, DSL, fiber optic, cellular/wireless and microwave transmission) in the market for video, data and voice communication services. We believe that satellite services have several advantages over these competing communication platforms, including the following: • Satellites are a relatively cost-effective and efficient means to deliver a signal (e.g., TV, radio) to hundreds of millions of locations in a large geographic area, in particular in remote areas; • The capacity to provide extensive coverage over a large geographic region allowing for the addition of sites at a lower marginal cost. Unlike cable and fiber lines, satellites can readily provide broadcast and communication services over large areas and to remote locations where the population density may not be high enough to warrant the expense of building a terrestrial-based communications network; • The ability to deploy communications quickly in locations where little or no infrastructure is available, for example in the case of natural disaster response; and • The capability to bypass shared and congested terrestrial links, further enhancing network performance, resiliency and security. Traditionally, satellite communications services have principally been delivered by GEO satellites, such as those in our fleet, which circle the earth from orbital locations approximately 22,300 miles (35,700 kilometers) above the equator. Each GEO satellite in essence “blankets” a fixed geographic area with its signals and can communicate continuously with an earth station antenna if it is pointed to, and has an unobstructed view of, that satellite’s orbital location. An individual satellite can be designed to cover large geographic areas, to focus its coverage more specifically on particular markets or regions, or to use a portion of its total capacity for each type of coverage. This contrasts with NGSO satellites, which include LEO satellites with an altitude typically between 200 and 870 miles (325 to 1,400 kilometers) and satellites operating in MEO that stand between the LEO and GEO orbits. Unlike GEO satellites that operate in a fixed orbital location above the equator, LEO and MEO satellites continuously travel around the Earth at high velocities and, depending on their orbits, may cover higher latitude parts of the Earth that GEO satellites may not be able to reach. 52 Table of Contents Overview of Our GEO Satellite Business Our GEO satellite fleet is comprised of 14 satellites and offers global coverage with a concentration over the Americas. We have a significant position in the North American satellite video distribution market. Our GEO satellite fleet and ground infrastructure provide a platform supporting (i) video distribution and DTH in North America with large telecommunications customers and significant contracted backlog, and (ii) connectivity satellite services for customers around the world for backhaul of telephone and internet traffic, corporate networks, maritime and aero broadband connectivity services, and video distribution and contribution. We offer our suite of GEO satellite services to customers worldwide, which include some of the world’s leading DTH service providers, ISPs, network service integrators, telecommunications carriers, corporations and government agencies. We have established long-term, collaborative relationships with our customers and have developed a reputation for innovation, reliability, and outstanding customer service. We believe our global satellite fleet, access to desirable orbital locations and spectrum rights and strong relationships with our customers position us to maintain a leading position as a provider of GEO satellite services. GEO Business Model The majority of our revenue comes from service agreements. These cover the provision of satellite capacity, ground services and/or end-to-end managed services. In our service agreements, a customer commits to purchase a specific type of capacity or service. Typically, our service agreements are non-cancellable, except in the event of a continued period of service interruption. Our sales efforts are organized by region. We sell our services worldwide primarily through a direct sales force located at our headquarters in Ottawa and in London, Singapore, Rio de Janeiro, Washington D.C.. Some of our sales representatives work remotely from different locations in North America or Europe. Our GEO Services We earn the majority of our revenues by providing satellite-based services to customers who use these services for their own communications requirements or to provide video and data service solutions to customers further down the distribution chain. We also earn revenue by providing ground-based transmit and receive services, selling equipment and installing, managing and maintaining satellite networks. We currently derive revenues from the following services: • Broadcast: Our broadcast services business provided approximately 47% of our revenues for the year ended December 31, 2025. Our broadcast customers include North American DTH providers Bell TV, Shaw Direct, DISH Network, and leading telecommunications and media firms. These services include: • DTH: The two major DTH service providers in Canada (Bell TV and Shaw Direct) exclusively use Telesat satellites as a distribution platform for satellite-delivered television programming, audio and information channels directly to their customers’ homes. In addition, one of our satellites is used by DISH Network for DTH services in the U.S. • Video distribution and contribution: Broadcasters, cable networks and DTH service providers use our satellites for the full-time transmission of television programming. • Enterprise: Our enterprise services provided approximately 49% of our revenues for the year ended December 31, 2025. Our enterprise customers include Bell Canada, Hughes Network Systems, iForte, Marlink, Northwestel, Telespazio, Viasat and Vodafone. These services include: • Telecommunication carrier and integrator services: We provide satellite capacity and end-to-end services for data and voice transmission to telecommunications carriers and integrators located throughout the world. These services include space segment services and terrestrial facilities for enterprise connectivity, internet backhaul, cellular backhaul and services such as rural telephony to telecommunications carriers and network services integrators around the world. 53 Table of Contents • Maritime and aeronautical services: We provide satellite capacity to customers serving the maritime and aeronautical markets, bringing broadband communications services to commercial airplanes and vessels. • Government services: We are a significant provider of satellite services to the Canadian government and also provide services to the U.S. and other allied governments through government service integrators. • Direct-to-consumer broadband services: We provide satellite capacity to Xplore in Canada, and to Hughes Network Services in South America, who each, in turn, use it to provide two-way broadband internet services directly to consumers. • VSAT services: We operate satellite and terrestrial networks that support enterprise and retail activities in Canada¸ including point-of-sale and other applications. These services include installation and maintenance of the end user terminal as well as the provision of satellite capacity and other network elements. • Resource services: We provide communications services to geographically diverse locations, both on and off shore, for the oil and gas and mining industries. • Consulting and other: Our consulting and other category provided approximately 4% of our revenues for the year ended December 31, 2025. We operate satellites for third parties and provide technical consulting services. The combination of our North American broadcast, enterprise and government services businesses, and our international business offers diversity in terms of both the customers, end markets and regions served as well as the services provided. Our GEO Infrastructure In-Orbit GEO Satellite Fleet Our GEO satellite fleet is comprised of 14 satellites offering global coverage with a concentration over the Americas. Owned in-orbit GEO satellites as of December 31, 2025 Orbital Location Regions Covered Launch Date Manufacturer’s End-of-Service Life End-of-Orbital Maneuver Life(1) Model Anik F1R 107.3° WL North America Sep 2005 2020 2029(2) E3000 (EADS Astrium) Anik F2 111.1° WL Canada, Continental United States Jul 2004 2019 2027(2)(5) BSS702 (Boeing) Anik F4 111.1° WL Canada May 2004 2019 2026 A2100 (Lockheed Martin) Anik F3 118.7° WL Canada, Continental United States Apr 2007 2022 2030(2) E3000 (EADS Astrium) Anik G1 107.3° WL Canada South America Apr 2013 2028 2039 SS/L 1300 Nimiq 2(3) 109.2° WL North America Dec 2002 2015 2026(2) A2100 AX (Lockheed Martin) Nimiq 4 82° WL Canada Sep 2008 2023 2027(6) E3000 (EADS Astrium) Nimiq 5 72.7° WL Canada, Continental United States Sep 2009 2024 2036 SS/L 1300 Nimiq 6 91.1° WL Canada May 2012 2027 2046 SS/L 1300 54 Table of Contents Orbital Location Regions Covered Launch Date Manufacturer’s End-of-Service Life End-of-Orbital Maneuver Life(1) Model Telstar 11N 37.55° WL North and Central America, Europe, Africa and the maritime Atlantic Ocean region Feb 2009 2024 2027 SS/L 1300 Telstar 12 VANTAGE 15° WL Eastern United States, SE Canada, Europe, Russia, Middle East, South Africa, portions of South and Central America Nov 2015 2030 2032 E3000 (Airbus) Telstar 14R/Estrela do Sul 2 63° WL Brazil and portions of Latin America, North America, Atlantic Ocean May 2011 2026 2026 SS/L 1300 Telstar 18 VANTAGE(4) 138° EL India, South East Asia, Indonesia/Malaysia, China, Australia/New Zealand, North Pacific and Hawaii Sep 2018 2033 2040 SS/L 1300 Telstar 19 VANTAGE 63° WL Brazil and portions of Latin America, North America, Atlantic Ocean, Caribbean Jul 2018 2033 2037 SS/L 1300 ____________ (1) Our current estimate of when each satellite will be decommissioned, taking account of anomalies and malfunctions the satellites have experienced to date and other factors such as remaining fuel levels, consumption rates and other available engineering data. These estimates are subject to change and it is possible that the actual orbital maneuver life of any of these satellites will be different than we currently anticipate. Further, it is anticipated that the payload capacity of each satellite may be reduced prior to the estimated End-of-Orbital Maneuver life. (2) End-of-Orbital Maneuver life for these satellites has been extended through inclined orbit operations which reduces fuel consumption through the elimination of north-south station-keeping. (3) Our Nimiq 2 satellite is primarily used to provide short-term services to other operators who use the satellite at their designated orbital locations to preserve their spectrum rights. (4) Telesat International Limited (“TIL”), a subsidiary of Telesat Canada, and APT have entered into agreements relating to the Telstar 18 VANTAGE satellite, which are accounted for as a joint operation, whereby TIL’s interest is 42.5%. (5) Anik F2 was placed into inclined operations in December 2022. A C-band satellite acquired from a third party (renamed “Anik F4”) was collocated at the orbital location and commenced providing station-kept service in January 2023. (6) It is our intention to place Nimiq 4 in inclined orbit in late 2026 which is expected to extend the operational lifetime to 2030. Rights to Other Satellites In addition, we have rights to the entire Ka-band Canadian payload, consisting of nine user beams, on ViaSat-1. GEO Satellite Control Center, Network Operations Center and Earth Station Facilities Our primary Satellite Control Center (“SCC”) is located at our headquarters in Ottawa, Ontario. The SCC is the hub for our satellite-related activities. The facility is staffed 24 hours per day and currently operates 11 Telesat owned satellites: Anik F1R, Anik F2, Anik F3, Anik G1, Nimiq 2, Nimiq 4, Nimiq 5, Nimiq 6, Telstar 11N, Telstar 12 VANTAGE, and Telstar 18 VANTAGE. We also operate other satellites for third parties from our SCC in Ottawa. We operate our Telstar 14R/Estrela do Sul 2 satellite and our Telstar 19 VANTAGE satellite from our SCC in Rio de Janeiro, Brazil. The Anik F4 satellite is operated on our behalf by SES. Our headquarters is located at 160 Elgin Street, Ottawa where we lease approximately 75,900 square feet. The lease expires on July 31, 2029, and we have two options to extend for an additional five years each. 55 Table of Contents The Allan Park earth station, located northwest of Toronto, Ontario on approximately 65 acres of owned land, houses a customer support center and a technical control center. This facility is the single point of contact for our customers internationally and is also the main earth station complex providing Telemetry, Tracking and Control services for the satellites that we operate. The Allan Park earth station also houses our back-up satellite control center for the Nimiq and Anik satellites. The back-up satellite control center for the Telstar satellites is located at the Mount Jackson earth station. We have the functional ability to restore satellite control services via the Allan Park and Mount Jackson back-up control centers if our primary SCCs became disabled. In addition to the Ottawa headquarters and the Allan Park earth station, we operate a number of other earth stations, including the following: Overview of Telesat GEO Earth Stations (Other than the SCC and Allan Park) Earth stations Owned or leased property Victoria, British Columbia, Canada Leased Fort McMurray, Alberta, Canada Leased Calgary, Alberta, Canada Owned Hague, Saskatchewan, Canada Leased Saskatoon, Saskatchewan, Canada Leased Winnipeg, Manitoba, Canada Owned Montreal, Quebec, Canada Owned Iqaluit, Nunavut, Canada Leased St. John’s, Newfoundland, Canada Leased Yellowknife, Northwest Territories, Canada Owned Mount Jackson, Virginia, U.S. Owned Middleton, Virginia, U.S. Leased Belo Horizonte, Brazil Owned Kapolei, Hawaii, U.S. Third party site Aflenz, Austria Third party site Perth, Australia Third party site Jakarta, Indonesia Third party site In addition to these facilities, we lease facilities for administrative and sales offices in various locations throughout Canada and the U.S. as well as in Brazil, England and Singapore. Background and Overview of Telesat Lightspeed A key growth opportunity is our deployment of Telesat Lightspeed. We believe that the global broadband internet connectivity provided by Telesat Lightspeed will allow Telesat to rapidly and profitably grow its business. For this reason, we have invested significant time and resources to develop and build this innovative constellation of LEO satellites, which we believe will be among the most capable and technologically advanced satellite-based enterprise grade networks in the world. The success of Telesat Lightspeed is expected to be driven by the compelling value proposition it represents in the market, as well as our deep familiarity with our customers, their markets, use cases and needs. Broadband from LEO has moved well beyond the developmental phase into a period of rapid commercial scaling and global adoption. As of late 2025, the viability of LEO technology is underscored by the massive scale of existing constellations. SpaceX’s Starlink in particular has demonstrated the value proposition of LEO to commercial and government users, now servicing more than 10 million active customers. This growth includes significant expansion into high-value enterprise segments; maritime, including major cruise lines and commercial fleets and aero as well as the burgeoning defense and security markets. 56 Table of Contents Overview of Telesat Lightspeed As discussed in greater detail below, the Telesat Lightspeed design has been optimized to serve the fast-growing broadband connectivity requirements of fixed and mobile network operators, aeronautical and maritime users, enterprise customers and governments. Telesat Lightspeed will combine state-of-the-art interconnected LEO satellites coupled with a sophisticated and integrated terrestrial infrastructure to create a global fiber-like broadband network for commercial and government users worldwide. Our fleet of satellites will operate in orbits designed to optimize coverage and capacity, providing full global coverage while concentrating capacity over geographic regions of highest demand. Additional satellites and ground facilities can be added to the network over time to meet increased user demand as and when required. MDA Space is the prime satellite manufacturer for the advanced Telesat Lightspeed LEO constellation. SpaceX is contracted to provide launch services, and a number of other suppliers are under contract to provide various other elements of the service including landing stations, user terminals and software. In September, 2024, Telesat announced that it had entered into definitive agreements with respect to its Telesat Lightspeed Financing in the amount of up to approximately US$2 billion and that this funding, combined with Telesat’s own approximately US$1.6 billion equity contribution, as well as certain vendor financing, would provide the Telesat Lightspeed program with sufficient funds to launch global service. The GoC will also contribute up to $85 million to Telesat through the GoC’s Strategic Innovation Fund (“SIF”). We have entered into an agreement with the GoC to bring affordable, high-speed internet connectivity across rural, underserved areas of Canada. Under the terms of our agreement, Telesat will receive $600 million from the GoC over a ten-year period commencing when the Telesat Lightspeed network begins commercial service, which will enable internet and mobility service providers to acquire Telesat Lightspeed capacity at reduced rates to bring universal broadband connectivity to rural, Northern and Indigenous communities across Canada. We have also entered into a substantial multi-year contract with Viasat Inc. for Telesat Lightspeed services. Under its multi-orbit strategy, Viasat plans to integrate Telesat Lightspeed into its services portfolio for aviation, maritime, enterprise and defense markets. In 2025, Telesat entered a strategic partnership with the GoC and MDA Space to develop and deliver a multi-frequency, Arctic military satellite communications capability to the Canadian Armed Forces (CAF) for a fifteen-year term. This partnership is part of the Enhanced Satellite Communications Project — Polar (ESCP-P), one of the key procurements being led by the newly formed Defence Investment Agency. It will provide reliable wideband and narrowband connectivity to support CAF operations in the Arctic. This project is leveraging Canadian industry to create high-quality jobs across the country, while unlocking a multi-billion dollar investment in Canada’s defense sector. In 2026, Telesat announced the addition of Mil-Ka to its advanced Telesat Lightspeed network to meet the anticipated global demand for mission critical Mil-Ka capacity in LEO. Specifically, Telesat is replacing 500 MHz of commercial Ka spectrum with 500 MHz of Mil-Ka spectrum. Secure Mil-Ka satellite communications has become the essential backbone of modern armed forces, the connective tissue binding warfighters, decision makers, defense platforms, weapon systems, sensors, military intelligence, and Command & Control into a coherent, integrated system of systems. In an era defined by great power competition and rapid technological change, the ability to project military power, coordinate joint operations, and respond decisively at any moment depends on access to resilient, secure, and high-throughput communications. Yet as adversaries develop increasingly sophisticated capabilities to contest, degrade, and deny these links, guaranteed access to trusted mission-critical SATCOM capacity has evolved from a tactical advantage into a strategic imperative. Telesat Lightspeed Mil-Ka services extend the design principles of the network’s original Commercial Ka-band architecture, which was developed to support mission critical enterprise and government connectivity requirements. Mil-Ka provides an additional layer of operational utility and resilience for defense users, while leveraging a secure, resilient and flexible transport framework. Customer encrypted data can traverse the optically linked mesh network in space and bypass third-party terrestrial infrastructure to maintain sovereign data control and reliable communications 57 Table of Contents in demanding operational environments where communications superiority is a precondition for mission success. With this change to our spectrum configuration, Telesat Lightspeed is expected to deliver significantly more Mil-Ka capacity on its state-of-the-art network than all Mil-Ka capacity in orbit today and will deliver the sovereign, resilient, and trusted capacity that Canada and allied defense users require. Telesat Lightspeed Infrastructure Since January 2018, we used the LEO 1 satellite to validate and de-risk key features of our LEO system design, specifically the capability of the satellite and customer terminals to deliver a low latency broadband experience. The LEO 1 Satellite was removed from service in July 2023 and was replaced by the LEO 3 satellite to continue the mission. With industry partners and customers, we have conducted successful validations in each of the key vertical markets we are targeting. • Enterprise and Telecom: In partnership with Vodafone and the University of Surrey, we demonstrated that LEO satellites can provide effective backhaul transport for mobile network operators, including advanced backhaul solutions for 5G, based on round trip latency of 18-40 milliseconds during testing, among the lowest ever for a satellite broadband connection. Additional commercial LEO tests have been conducted with Telefonica, Optus, Motorola Solutions and PLDT. Microsoft Azure used the LEO 1 satellite to test throughput, latency and jitter, and also successfully demonstrated application functionality such as Office 365, Teams conferencing, file transfers to OneDrive, streaming videos and playing cloud hosted games on Xbox Cloud. 58 Table of Contents • Aviation: We have successfully demonstrated Telesat Lightspeed network’s IFC service capabilities via our LEO satellite with Honeywell and Anuvu, significantly mitigating the performance risk of LEO connectivity over Ka-band to commercial airplanes. • Maritime: We have successfully demonstrated Telesat Lightspeed network’s fit for maritime satellite communications services via our LEO 1 satellite with NSSL Global and OmniAccess, leaders in maritime connectivity solutions. • Government: Telesat Lightspeed is particularly attractive to governments because of its resilient distributed nature, secure, low latency, and truly global service. In 2018, we were awarded a contract by DARPA to demonstrate capabilities of Telesat Lightspeed with DARPA’s experimental “Blackjack” constellation. In October 2020, DARPA awarded us a contract for the development and in-orbit demonstration of commercial spacecraft buses in a LEO constellation network with robust low latency communications features. As part of this follow-on contract, we have delivered two spacecraft buses to DARPA for a “risk reduction” flight to test optical inter-satellite link (OISL) communications with government payloads in orbit and to demonstrate OISL interoperability with different hardware. In July 2022, Telesat was one of the recipients of the DARPA Space-Based Adaptive Communications Node (Space-BACN) contract to demonstrate the architecture of inter-connecting commercial LEO constellations and their OISL enabled mesh networks with heterogeneous U.S. government networks. We also have contracts in place with prime contractors L3 Harris and General Dynamics Mission Systems for demonstrations and studies with Air Force Research Labs and NASA. In October 2020, Telesat U.S. Services was selected to become part of the Lockheed Martin team, which was recently awarded the Space Transport Layer Tranche 0 contract by the U.S. Space Development Agency.Taken together, these developing relationships and contract awards demonstrate that the U.S. government is investing significant resources to bring about its “pivot” from GEO- to LEO-based satellite systems and its demonstrated interest in Telesat Lightspeed as a commercial satellite solutions provider. Telesat’s addition of Mil-Ka frequencies, coupled with its advanced security features, further bolsters Telesat’s ability to serve government users. Satellites Telesat Lightspeed was designed to optimally serve the key market verticals on which we are focused. It will allow Telesat to provide secure, high throughput and cost-effective broadband services for users in rural and remote areas, aero and maritime customers and government users. Telesat Lightspeed satellites incorporate leading-edge technologies and features, including: • Advanced phased array antennas instantly match capacity to demand: The antennas on each satellite are combined with advanced, digital beam forming technology that can create hundreds of thousands of logical beams and dynamically focus multiple Gbps of capacity into demand hot spots like remote communities, large airports or major seaports; • Interlinked satellite mesh network in space for high resilience and new applications: Each satellite will have high capacity optical links that combine to create a highly resilient, flexible and secure space-based network, moving data across the network and around the world at the speed of light; • Data processing in space provides most efficient traffic routing: Full digital modulation and demodulation occurs on the satellite which, coupled with an end-to-end constellation network operating system, improves link performance and gives customers a high degree of flexibility for routing traffic, eliminating gateway hops for fast, secure, end-to-end delivery of data; and • Efficient orbital configuration maximizes network performance: Telesat Lightspeed satellites operate in an innovative orbit designed to optimize coverage and capacity, with true pole-to-pole global coverage. LEO Satellite Control Center, Network Operations Center and Earth Station Facilities An SCC, along with a Network Operation Center (“NOC”), from which we will operate Telesat Lightspeed and manage and support customer services are under construction in Gatineau, Quebec. The NOC will monitor and control the various non-spacecraft elements of the Telesat Lightspeed network. It will respond to faults and alarms generated 59 Table of Contents across the network whether relating to hardware, software or hosted services. It will also respond to customer service network issues and requests. Change management on the Telesat Lightspeed system will be controlled and coordinated by NOC personnel. The facility will be staffed 24 hours per day with rotating shifts. Overview of Telesat LEO Earth Stations Under Construction Earth stations Owned or leased property Papineauville, Quebec, Canada Owned Timmins, Ontario, Canada Owned Estevan, Saskatchewan, Canada Owned Shaunavon, Saskatchewan, Canada Leased Bercenay-en-Othe, France Third party site Berry Jerry, New South Wales, Australia Third party site Rugby, United Kingdom Third party site Ground-Based Infrastructure The ground-based infrastructure of Telesat Lightspeed will consist of the landing stations (“Landing Stations”) and terrestrial network (“Terrestrial Network”) segments. Telesat Lightspeed is designed to make it easy for customers to connect to the network and communicate through it. Metro Ethernet Forum standards-compliant services are expected to simplify the integration of Telesat Lightspeed into customer provisioning, operations and billing systems. • Landing Stations: We are deploying widely distributed Landing Stations around the world to provide connectivity to Telesat Lightspeed. The Landing Stations provide the links that connect the satellites to our ground system. • Terrestrial Network: The Terrestrial Network consists of Points of Presence (“PoPs”) and the global fiber network that interconnects all elements of the network, including the Landing Stations and PoPs. PoPs will host customer facing network interfaces and will relay customer traffic to Landing Stations. One or more Landing Stations may connect to a regional PoP. Telesat Lightspeed Performance Features Telesat Lightspeed will provide critical features and functionality that will make it a highly compelling value proposition in the market verticals it has been optimized to serve, including: • High throughput: Individual links will be at speeds in the gigabits per second and Telesat Lightspeed will have multiple terabits per second of total usable capacity; • Low latency: Data will travel from the customer location to the internet (or the customer’s network) roughly 20 times faster than the latency that GEO satellites can provide; • Low cost: With its highly innovative design, Telesat Lightspeed is expected to have a cost advantage over many other satellite broadband solutions, enhancing its competitiveness and expanding the addressable market for satellite-delivered connectivity solutions; • Focused and flexible capacity: The network will be able to dynamically allocate high capacity where and when customers require it, and will be able to reconfigure that capacity distribution as customer demand changes and evolves. Telesat Lightspeed also supports mesh connectivity enabling efficient remote to remote communications without having to transit the landing station; • True global coverage: Telesat Lightspeed will provide coverage of the Earth’s entire surface, from pole to pole, fulfilling the needs of governments and mobility markets, such as aviation and maritime for global network coverage and providing a uniform connectivity experience; 60 Table of Contents • Interoperability with terrestrial networks: Customers want to connect to a satellite network as seamlessly as they do to terrestrial fiber networks today. Telesat Lightspeed leverages MEF 3.0 industry-wide network interface standards which enable simple, seamless integration with customers’ terrestrial networks, without the need to integrate proprietary hardware or software. Through MEF 3.0 underlay connectivity service standards, customers can easily understand the capabilities provided by Telesat Lightspeed and how these software-defined digital services can be procured and integrated into their networks; and • High level security and resiliency: With a constellation of interconnected satellites and advanced satellite technologies such as narrow, steerable beams, beam hopping, and fast frequency hopping, Telesat Lightspeed has been designed to ensure that communications are extremely difficult to intercept, decipher, or jam. We believe Telesat Lightspeed will provide a high level of resiliency and protection against interference never before available in satellite communications. Telesat Lightspeed is based on a zero-trust architecture with stringent cybersecurity controls supporting end-to-end data encryption with government-owned key management cryptographic systems providing a high-level of security. Overview of The Telesat Lightspeed Market Opportunity: Growing Demand for High-Capacity, Fiber-like Broadband Connectivity Everywhere Global broadband demand is increasing exponentially as the world is becoming increasingly digital, a trend that was accelerated by the global COVID pandemic. Applications and programs that are critical to individuals, businesses and governments are built to run on the fast, low latency terrestrial networks that serve the majority of users in developed economies. Forecasted rates in IP-traffic are expected to grow from 160 exabytes per month in 2023 to 563 exabytes per month in 2029, a 23% compound annual growth rate, on a global basis.2 However, there is a major gap in access to global broadband connectivity, with more than three billion people who live outside of urban areas either poorly connected or not connected at all. These unserved and underserved areas include over one million mobile sites (where legacy 2G/3G equipment is installed but cannot provide broadband data without affordable high capacity backhaul), 600,000 schools, hospitals and offices, 550,000 ships at sea and almost four billion aviation passengers each year. Significant investments in LEO by Starlink, Eutelsat and Amazon, coupled with Starlink’s rapid growth in users (surpassing 10 million) have confirmed there is a massive addressable market for “fiber-like” LEO broadband in unserved regions. LEO technology is emerging as the primary solution for bridging the global “digital divide,” offering the capacity and performance required to replace or augment terrestrial networks where such networks are geographically or economically unfeasible. LEO is also proving transformational for aero, maritime and government. Traditional Terrestrial and Satellite Solutions Cannot Meet This Growing Demand, but LEO Satellites Can Expanding the availability of the digital world to unserved and underserved areas requires bringing to these areas the same type of broadband, fiber-quality connectivity that is available in well-connected areas. It is, however, either prohibitively expensive to install fiber in certain geographic areas or simply physically impossible (e.g., to planes and ships). Historically, the primary options for these markets have been traditional GEO satellites. While these satellites can provide coverage in most areas, because of the vast distances between the Earth’s surface and the orbital positions above the Earth occupied by GEO satellites, the user experience suffers due to high latency (the round-trip time delay between the data source and the data destination), which is prejudicial and, at times, prohibitive for certain consumer and enterprise broadband applications. While MEO offers lower latency than GEO, the latency is still higher than terrestrial networks, undermining the user experience. ____________ 2 Ericsson Mobility Report November 2023 61 Table of Contents • Consumer applications: Real-time communications services (e.g. Zoom and FaceTime) show disruptive lag, multi-player gaming experiences are degraded, and encrypted applications such as Virtual Private Networks (remote work access tools) and encrypted websites can experience significant lags or fail altogether. • Enterprise applications and real-time communications and controls: Highly latency-sensitive enterprise applications cannot operate on systems that have a meaningful delay in sending and receiving a signal. Advanced mobile networks, like 5G, cannot operate as intended over high latency backhaul. LEO satellites are 35 times (or more) closer to the Earth than GEO satellites and 8 times (or more) closer than MEO satellites, thereby solving latency issues that exist with GEO and MEO satellites. In addition to offering low latency, however, any potential LEO solution must also be significantly flexible and technologically advanced to dynamically deliver high capacity connectivity where users require it and minimize the amount of capacity that is idled because it cannot effectively be put to use in the network at any given time. A next-generation satellite broadband network must meet other market requirements for commercial broadband services: • High capacity: Capable of coping with high demand and network congestion. Since demand for connectivity tends to be concentrated, LEO networks must be able to dynamically concentrate very high amounts of capacity to high demand areas such as airports and seaports. • Affordable: Global broadband services provided over a LEO satellite network must be affordable, transforming the economics of the existing marketplace and expanding the addressable market. • Global coverage: Provide services everywhere, including to high latitude areas like the poles (a critical feature for large airlines, global shipping fleets and governments) as well as non-urban areas. • Simple to use: Plug and play with existing infrastructure by having simple, standards-based interfaces to the terrestrial network and the Internet. • Resilient and Secure: Mission-critical level of reliability of service. Online activities are now critical for the well-being of individuals, businesses and government users, increasing the emphasis on the resiliency and security of the communications network supporting them. A LEO satellite network is a distributed, multi-node network, making it more resilient to service outages. Further, multiple satellites and multiple beams from a satellite makes it complex to intercept, decipher and jam communications from a LEO constellation unlike traditional GEO satellites, thereby improving the overall security posture. LEO networks with advanced encryption and compliance with government cybersecurity standards (e.g., NIST, IAPRE, etc.) deliver highly secure satcom. As discussed further below, Telesat Lightspeed has been specifically designed and optimized to meet these requirements. The Market Opportunity for Telesat Lightspeed in Key Vertical Markets We estimate that the total addressable market, or TAM, for our GEO business was approximately US$15.6 billion at the end of 2025.3 Telesat Lightspeed is expected to significantly increase our TAM. The estimated TAM for LEO was approximately US$425 billion in 2025, which we project will nearly double by 2032 in light of the demand drivers that exist today (e.g., 5G backhaul in terrestrial vertical or passenger connectivity in aviation vertical, and IoT). The Telesat Lightspeed design has been specifically optimized to serve vertical markets that require fiber-like connectivity beyond the reach of terrestrial networks. Our target markets span four verticals: (i) enterprise and telecom, (ii) aviation, (iii) maritime, and (iv) government. These target markets require all of the features of Telesat Lightspeed, but each also have their own unique requirements, making certain features of Telesat Lightspeed particularly compelling to each of them. ____________ 3 NSR Global Satellite Capacity Supply and Demand Study, 19th Edition. 62 Table of Contents Enterprise and Telecom We estimate that the enterprise and telecom market opportunity that can be addressed by LEO was approximately US$415 billion in 2025 and will grow at 7% annually until 2030 to reach approximately US$575 billion. Of the US$415 billion, we estimate that about US$235 billion is the direct-to-consumer market opportunity and about US$180 billion is the enterprise market opportunity. Our estimates are derived from information on the enterprise and telecom data market obtained from a variety of sources, including OECD Broadband statistics, World Bank Country Indicators, Landscan (with respect to population distribution) and management’s analysis and estimates as to the portion of the enterprise and telecom data market that Telesat Lightspeed could address. Enterprise applications include fixed wireless and mobile backhaul, remote enterprise, and health and education. Telesat Lightspeed will initially focus on addressing the enterprise market. This market is underpinned by the approximately four billion people who are digitally underserved or unconnected. Key demand areas are backhaul from mobile wireless sites, fixed wireless backhaul for remote communities, remote enterprise and emergency services, and broadband for institutions (schools, hospitals, etc.). In many of these areas, there is simply no economical fixed or terrestrial wireless (e.g., microwave) backhaul solution for delivery of high-speed broadband connectivity. There also tends to be no quality terrestrial access in remote areas for enterprise cloud applications, meaning that schools, hospitals and other public institutions in those areas are unable to take advantage of broadband applications and cloud-based services over terrestrial networks. Satellites allow telecom operators to expand the reach of their fixed and mobile networks to locations not served, or underserved, by terrestrial networks by connecting these off-network locations to their main networks. Telesat Lightspeed is designed to provide an optimal, low-cost solution that can become the primary connectivity solution in remote areas and a secondary connectivity solution in urban areas. The Telesat Lightspeed “plug & play” versatility is expected to seamlessly integrate with terrestrial networks, vastly simplifying operations as compared to traditional satellite networks. The low latency of our network will enable customers to seamlessly transport encrypted traffic between terrestrial and satellite networks at high data rates, something that is not possible with traditional GEO satellite networks. The network is also expected to provide high throughput for large trunking links in remote regions (e.g., Northern Canada and island nations). Importantly, given our strong reputation and existing customer relationships providing backhaul solutions for telecommunications companies and Mobile Network Operators (“MNOs”) in underserved or unconnected areas, as well as the high growth potential of this market, we are not focused on direct-to-consumer services at this time. It is possible, however, that evolution in antenna technology and other market developments may cause Telesat to offer direct-to-consumer services in the future. Growing demand for fixed and mobile data, accelerated by the global rollout of 5G services and the universal service coverage requirements of many MNO licenses, is anticipated to drive growth for satellite backhaul services. Another growth driver for satellite services is expected to come from increased demand in the resource sector, largely driven by oil and gas exploration, the level of which has been driven principally by global economic growth. In addition, the current and increasing focus on safety concerns in the resource sector is leading to the implementation of diverse, redundant communications for monitoring and control of resource infrastructure (e.g., automated rigs and pipelines), including video, which may drive demand for low latency satellite services. Other demand drivers in the enterprise and telecom market include: • Corporate networks: As economic growth accelerates in parts of the world with poor terrestrial infrastructure, corporate enterprises expanding their activities in these regions will drive demand for increased satellite capacity. • Government-sponsored universal connectivity programs: Universal connectivity projects (government supported initiatives to bring broadband services to rural and remote communities and those with limited terrestrial infrastructure) are growing in both developed and developing nations. Governments are increasingly focused not just on basic connectivity but on enabling high quality connectivity, including 5G, to rural areas, similar to that in urban areas. 63 Table of Contents Telesat Lightspeed, which is expected to provide affordable, fiber-like connectivity and backhaul to remote areas, stands to benefit from the expansion of networks and growing demand for high-speed, low latency connectivity resulting from such government-funded digital inclusion programs. Aviation As broadband connectivity has become increasingly important to businesses and individuals, the need to stay connected has spread to locations that cannot readily access terrestrial networks. In aeronautical markets, satellite broadband for passenger and crew communications has become a significant driver of demand and a competitive differentiator as airlines and business jet operators around the world compete for passengers and staff. In addition, aircraft manufacturers and key parts suppliers (e.g., aircraft engine manufacturers) seek improved broadband connectivity to better monitor aircraft health, weather conditions and to optimize airline operations. For example, better and real-time data from the aircraft to the ground will help optimize flight paths and improve maintenance planning, all leading to lower operating cost for the airlines. We estimate the aviation market opportunity addressable by LEO was US$7 billion in 2025, and will grow by 15% annually to US$15 billion by 2030. The market opportunity includes delivering connectivity services to commercial aircraft and business jets. Airlines are looking to provide value-added and differentiated services to customers, such as free in-flight Wi-Fi and on-demand video streaming. IFC service providers are facing network capacity constraints in the U.S., especially around demand hotspots such as large airports, and may not have the necessary capacity to support the expected surge in demand as airlines start adopting free in-flight Wi-Fi. Airlines are also increasingly demanding the low latency solutions provided by LEO which has driven the success of Starlink in this market and, in part, led to the agreement with Viasat for Telesat Lightspeed services. The flexible architecture of Telesat Lightspeed is designed to deliver high throughput services to high demand air traffic corridors at speeds and costs that will allow airlines to unlock the benefits of IFC. We plan to offer full global coverage with the flexibility for the airlines and their IFC service providers to dynamically allocate capacity to any plane globally, allowing them to efficiently manage their capacity pools. Telesat Lightspeed is planned as a fully integrated satellite and ground segment network, relieving IFC service providers of the burden and cost of managing their own global hub infrastructure. Maritime We estimate the maritime market opportunity that can be addressed by LEO satellite constellations reached about US$3 billion in 2025 and will grow at a 7% annual rate to US$5 billion by 2030. This market includes connectivity to merchant vessels, oil & gas sites, yachts and cruise ships. Currently, GEO satellite operators provide maritime connectivity networks, but these systems suffer from low capacity, high latency and high cost and fail to deliver the connectivity experience desired by passengers and crew members at sea. Cruise lines compete with terrestrial holiday options and greatly benefit from the ability to deliver an at-home-type connectivity experience to customers at sea. We believe Telesat Lightspeed will be well positioned to deliver high throughput and low latency to cruise ships anywhere in the world, ensuring a compelling connectivity experience. Similarly, yacht owners want to enjoy the same high-quality broadband experience that they have in their homes and offices. For the merchant shipping lines and large oil and gas offshore platform operators, quality and fully global connectivity are a key “ask” of the crew and influences the ability to attract and retain employees. Real-time ship-to-shore connectivity also enables important operational efficiencies (e.g., optimal sea routes reduce vessel fuel costs). Similar to aviation services, the flexible architecture of Telesat Lightspeed will deliver high throughput services to high demand ports and full global coverage with the flexibility to allocate capacity to any maritime vessel globally, meaning that commercial and passenger fleets alike can ensure consistent fiber-like connectivity throughout the duration of their journeys. 64 Table of Contents Government We estimate the government market opportunity addressable by Telesat Lightspeed reached approximately US$1 billion in 2025 and will grow at about 50% annually until 2030 to reach approximately US$11 billion.7 Telesat will focus on the government demand addressed by commercial satellite operators. The addition of Mil-Ka frequencies to Telesat Lightspeed further enhances Telesat’s ability to serve the defense market. Key applications initially include connectivity to government aircraft, naval vessels and deployed sites. The global defense landscape is undergoing a historic transformation. NATO allies are committing to increase defense spending of 2% of GDP, with several nations now targeting 5%, unlocking massive investments in capabilities including satellite communications. Canada has committed to these increased spending targets and its new Defence and Industrial Strategy (DIS) identifies sovereign space-based communications as foundational to national security. Telesat’s selection as a strategic partner for Canada’s Enhanced Satellite Communications Project (ESCP) is a powerful proof point of this commitment, further positioning Telesat as a critical mission partner in defense operations. Allied nations globally are investing in sovereign and diverse LEO satellite communication systems to reduce strategic dependence and ensure resilient connectivity. The European Union is developing the Infrastructure for Resilience, Interconnectivity and Security by Satellite (IRIS²), Germany and Italy are both pursuing national LEO network initiatives, and South Korea is advancing its kLEO program. The U.S. government, the single largest user of commercial satellite communications, is moving toward proliferated LEO architectures through programs, including Golden Dome and United States Space Force’s pLEO initiative. The defense segment is expected to drive increased global demand for commercial satellite communications to supplement traditional bespoke MILSATCOM capabilities. Commercial satellites increasingly support secure communications, surveillance, reconnaissance, and mobile communications, which includes support for unmanned aerial vehicles, logistics, troop welfare and a host of other services. The benefits and utility of LEO constellations are being demonstrated in Ukraine following the Russian invasion where SpaceX’s Starlink has been critical in connecting the Ukrainian government, military, NGOs and civilians. Government space architectures recognize the operational benefits of multi-orbit “proliferated” constellations, particularly those based on LEO. As more nations demonstrate counter-satellite systems and communications jamming capability, governments are expected to seek LEO constellations made up of hundreds of advanced, interconnected satellites in an inherently more distributed, resilient and secure network than a network comprised of a handful of high-value GEO satellites. LEO constellations also offer real-time low latency connectivity, and global coverage (including the poles). Global low latency communications are a key goal for the unmanned, remotely controlled, sensor platforms, which are vital to government environmental observation, meteorology, and defense. The DoD has made the development of multi-orbit, “hybrid” commercial/government constellations a priority for the new U.S. Space Force. In an operational domain where the integration of commercial capabilities into defense activities is becoming more widely accepted and desired, it is critical for industry partners to recognize the unique operational military requirements they are required to support. The addition of Mil-Ka spectrum to Telesat Lightspeed is just such a recognition, and positions Telesat to serve the defense market in a highly compelling manner. Another application in the government vertical market is for “space relay” services. Simply described, government-owned spacecraft could transmit data they collect directly to Telesat Lightspeed satellites in space through optical inter-satellite links, using Telesat Lightspeed as a communications relay network to route such data quickly and securely anywhere on Earth. We anticipate that the U.S. and other governments may launch their own satellites that interface with the Telesat Lightspeed network in that manner. Such a “space relay” service would simplify the design ____________ 7 International Defense Budgets, US Department of Defense Budgets, Management’s analysis and estimates. 65 Table of Contents and lower the cost of government spacecraft and enable a more rapid technology refresh cycle than is currently the case, a capability that will be particularly attractive for national security applications in a rapidly changing world with budgetary constraints. Additional Drivers of Demand Across Verticals and Markets for LEO Services In addition to the factors driving the projected TAM growth in the key verticals described above, we believe the following trends can be expected to drive satellite services growth in the coming decade: • Internet of Things: A vast number of physical objects (e.g., factories, appliances, machinery, electric grids and other infrastructure) now have the capability to monitor their environment, report status, receive instructions, and take action based on information they receive. This is all part of the Internet of Things, or IoT, that already comprises billions of devices in use worldwide and which is forecasted to grow at an approximately 16% average yearly rate until 2029. Reliable communications are essential for IoT to work and, while most IoT connections will likely be by terrestrial wireless, the growth in the number of connected devices is expected to drive increased demand for satellite services. • Emerging industries: As developments in technologies like artificial intelligence and automated services progress, future applications such as autonomous driving and the connected car will require more than one communication link to ensure fully redundant connectivity at all times. Telesat Lightspeed is designed to support these developing technologies in an economically feasible manner as they evolve and come to increasingly rely on secure, reliable, low latency communications networks. The Competitive Landscape for Our Services We compete against other global, regional and national satellite operators and with providers of terrestrial-based communications services. Telesat is a leading global satellite operator. Other scaled, global satellite operators include SES S.A. (“SES”), Eutelsat Group (“Eutelsat”), Viasat, and SpaceX. We also compete against a number of nationally or regionally focused satellite operators around the world including Hispasat, Sky Perfect JSAT, kt sat and APT Satellite. Telesat competes with these operators based primarily on the quality of our services, location of our orbital slots relating to the GEO business, performance characteristics of our satellites, price, and overall client needs. SpaceX and Eutelsat Group/OneWeb have LEO satellite systems that are now in service, and they continue to add satellites and capacity. There are a number of other LEO satellite systems that have been announced, including Amazon and Blue Origin TeraWave. We believe that the innovative architecture and advanced technology of Telesat Lightspeed, as well as the market dynamics in the verticals we plan to serve, will allow us to compete effectively against any of the current and proposed systems. More recently, direct-to-device satellite technology is being introduced by various providers, including Starlink, Globalstar and AST Mobile, targeting 5G service offerings to low population density areas and remote regions. We believe the combination of the following attributes positions us favorably to commercialize Telesat Lightspeed successfully, notwithstanding competitors in the LEO marketplace: • Enterprise-class system: Telesat Lightspeed is focused on enterprise and government solutions and optimized for that purpose. Our constellation design, features and functionality, built to government standards and security requirements, including Mil-Ka frequencies, will deliver a highly compelling satellite-based enterprise class network. • Vast technical expertise, experience and relationships: As a trusted satellite operator with a highly experienced management team, we have longstanding relationships at the most important levels of the industry (e.g., customers, suppliers and regulators), and an established eco-system of partners to design a technologically-advanced and economical ground infrastructure. 66 Table of Contents • Existing, engaged customer base: We are known and trusted by key customers and have a deep understanding of their requirements. Telecommunications, enterprise, and government customers around the world today rely on Telesat to help plan their future mission critical infrastructure needs. • Global regulatory experience: Regulatory compliance is a critical aspect of operating and commercializing a satellite network. Obtaining rights to use spectrum and to gain access to provide service in countries around the world is a complex process. National governments have viewed space, and access to their markets from space, as a critical asset and require compliance with their regulations. The framework for NGSO spectrum rights, both at an individual country level and internationally at the ITU, is evolving, and it is critical to be an active participant in, and have deep knowledge of, these processes. Telesat has extensive experience in all of these areas, as well as credibility with regulators and other industry participants. For further regulatory detail, see “— Regulation.” • Strong government alignment: Telesat has received strong participation in Canada at the federal and provincial levels as evidenced by its selection as a strategic partner for the Enhanced Satellite Communications Project (ESCP), the Telesat Lightspeed capacity agreement executed with the GoC to bridge the digital divide and the approximately US$2 billion in Telesat Lightspeed Financing — reflecting the GoC’s and GoQ’s confidence in Telesat Lightspeed as a platform to advance domestic priorities and allied capability goals under the DIS. Employees As of December 31, 2025, we and our subsidiaries had approximately 711 permanent full and part-time employees. Approximately 1.6% of our employees are subject to collective bargaining agreements. Our employee body is primarily comprised of professional engineering, sales and marketing staff, administrative staff and skilled technical workers. We consider our employee relations to be strong. Intellectual Property Our success depends in part on our ability to obtain, maintain, protect, and enforce our intellectual property rights. We rely on a combination of patent, trademark, trade secret, copyright and other intellectual property rights and measures to protect the services and technology that we consider important to our business. We also rely on know-how, trade secrets and continuing technological innovation to develop and maintain our competitive position. Our policy is to seek to protect our proprietary position by, among other methods, pursuing and obtaining patent protection in Canada and the United States and in jurisdictions outside of Canada and the United States related to our technology, inventions, improvements and services that are important to the development and implementation of our business. As of December 31, 2025, we owned a total of 65 issued patents, six of which were in the United States. These patents expire between 2030 and 2039. Seventeen of the issued patents are LEO-related, three of which are in the United States, and they expire between 2034 and 2039. Forty-eight of the issued patents are not LEO-related, three of which are in the United States, and they expire between 2030 and 2036. We also have several pending Canadian, U.S., and international patent applications. The term of individual patents depends upon the legal term of the patents in the countries in which they are obtained. Generally, in the United States, issued patents are granted a term of 20 years from the earliest claimed non-provisional or Patent Cooperation Treaty filing date. In certain instances, a patent term can be adjusted to recapture a portion of delay by the U.S. Patent and Trademark Office in examining the patent application. Additionally, a patent term may be shortened if a patent is terminally disclaimed over an earlier filed patent. However, the life of the patent, and the protection it affords, is limited. In addition, we cannot provide any assurance that any patents will be issued from our pending or future applications or that any issued patents will adequately protect our current and future services. We also cannot predict the breadth of claims that may be allowed or enforced in our owned or in-licensed patents or whether such claims, if issued, will cover our services, provide sufficient protection from competitors or otherwise provide any competitive advantage. Any issued patents that we may own or in-license in the future may be challenged, invalidated, narrowed, held unenforceable, infringed or circumvented. 67 Table of Contents There can be no assurance that infringement of existing third party patents has not occurred or will not occur. Additionally, because the patent application process is confidential, there can be no assurance that third parties, including competitors, do not have patents pending that could result in issued patents which we may infringe. In such event, we may be restricted from continuing the infringing activities, which could adversely affect our business, or we may be required to obtain a license from a patent holder and pay royalties, which would increase our cost of doing business. We believe that we have certain know-how and trade secrets relating to our technology and current and future services. We rely on trade secrets to protect certain aspects of our technology related to our current and future services. However, trade secrets and know-how can be difficult to protect. We seek to protect our trade secrets and know-how, in part, by entering into confidentiality agreements with our employees, consultants, scientific advisors, service providers, and contractors but these agreements may not provide meaningful protection, and we cannot guarantee that we have executed such agreements with all applicable counterparties. These agreements may also be breached, and we may not have an adequate remedy for any such breach. We also seek to preserve the integrity and confidentiality of our data and trade secrets by maintaining physical security of our premises and physical and electronic security of our information technology systems. Although we take steps to protect our trade secrets and know-how, third parties may independently develop or otherwise gain access to our trade secrets and know-how. For more information, please see “Risk Factors — Risks Relating to Intellectual Property”. Research & Development Our research and development expenditures are incurred for the studies associated with advanced satellite system designs, and experimentation and development of space, satellite and ground communications services. This includes the planned development of Telesat Lightspeed. Regulation We are subject to regulation by government authorities in the countries in which we operate. Specific details are provided for Canada, the U.S., the United Kingdom and Brazil, countries in which Telesat has ITU frequency rights authorized. We are also subject to the ITU radio regulations including the frequency coordination process defined therein, and to domestic regulation by government authorities in countries in which it operates. The applicable domestic regulations may depend on whether the frequencies are reserved for commercial or military/government use. Telesat Lightspeed satellites carry frequencies in the “Commercial-Ka” and in the “Mil-Ka.” At the international (ITU) level the Mil-Ka and Commercial-Ka bands (for which there are no formal definitions) are similarly allocated to satellite services; however, at the domestic level, some administrations have limited the Mil-Ka bands to government/military use only. As a result, for these administrations, to access the Mil-Ka frequencies additional approvals would be required, but the exact process and nature of those approvals are not well established because of the limited use of these frequencies by commercial operators in the past. Canadian Regulatory Environment Telesat Divestiture Act Telesat was originally established by the GoC in 1969 under the Telesat Canada Act. As part of the Canadian government’s divestiture of its shares in Telesat, pursuant to the Telesat Reorganization and Divestiture Act (1991) (“Telesat Divestiture Act”), Telesat was continued on March 27, 1992 as a business corporation under the Canada Business Corporations Act, the Telesat Canada Act was repealed and the Canadian government sold its shares in Telesat. The Telesat Divestiture Act provides that no legislation relating to the solvency or winding-up of a corporation applies to Telesat and that its affairs cannot be wound up unless authorized by an Act of Parliament. For further detail, see “Risk Factors — Risks Relating to the Business of Telesat Corporation.” In addition, Telesat and its shareholders and directors cannot apply for Telesat’s continuation in another jurisdiction or dissolution unless authorized by an Act of Parliament. 68 Table of Contents Telecommunications Act Telesat is a Canadian carrier under the Canadian Telecommunications Act (“Telecom Act”). The Telecom Act authorizes the Canadian Radio-Television and Telecommunications Commission (“CRTC”) to regulate various aspects of the provision of telecommunications services by us and other telecommunications service providers. Telesat is currently not subject to detailed rate regulation, however the CRTC has retained its powers under the Telecom Act to impose price regulation or other regulatory measures on Telesat in the future, as necessary. In addition, Section 28(2) of the Telecom Act provides that the CRTC may allocate satellite capacity to particular broadcasting undertakings if it is satisfied that the allocation will further the implementation of the broadcasting policy for Canada. Radiocommunication Act Our operations are subject to regulation and licensing by ISED pursuant to the Canadian Radiocommunication Act. ISED has the authority to issue spectrum and earth station licenses and establish policies and standards related to the radio frequencies upon which our satellites and earth stations depend. The Minister responsible for ISED has broad discretion in exercising this authority to issue licenses, fix and amend conditions of licenses, and to suspend or even revoke them. Some of the spectrum licenses under which we operate the Anik and Nimiq satellites require us to comply with research and development and other industrial and public benefit commitments, to pay annual spectrum license fees and to provide pan Canadian satellite coverage. FSS and BSS licenses are awarded to qualified applicants on a first-come, first-served basis. The term of spectrum licenses is 20 years, with a high expectation of renewal. ISED may, however, issue licenses with a shorter term. Spectrum licenses include standard conditions of license, including milestones for construction, launch and deployment of satellite(s). The Canadian Government opened Canadian satellite markets to foreign satellite operators as part of its 1998 WTO commitments to liberalize trade in basic telecommunications services, with the exception of DTH television services provided through FSS or DBS facilities. In September 2005, the Canadian Government revised its satellite-use policy to permit the use of foreign-licensed satellites for digital audio radio services in Canada. Contribution Collection Since November 2000, pursuant to the CRTC’s Decision CRTC 2000-745, telecommunications service providers that exceed a Canadian telecom revenue threshold are required to pay contribution charges, which are fees paid into a central fund used to support the provision of video relay service, and to subsidize the cost of providing cell phone and broadband service in rural, remote and underserved and high-cost serving areas. The charges payable by a telecom service provider are calculated as a percentage of its Canadian telecommunications service revenues, minus certain deductions (e.g., terminal equipment sales and inter-carrier payments). The rate for 2025 has been finalized at 0.46%. An interim rate of 0.11% has been established effective January 1, 2026 with a revised interim rate decision expected in the first half of 2026. United States Regulatory Environment The FCC regulates the provision of satellite services to, from, or within the U.S. Our U.S.-licensed satellites operate on a non-common carrier basis. Consequently, they are not subject to rate regulation or other common carrier regulations enacted under the Communications Act of 1934. We pay FCC filing fees in connection with our space station and earth station applications and annual license and market fees to defray the FCC’s regulatory expenses. Annual and quarterly reports must be filed with the Universal Service Administrative Company (“USAC”) covering interstate/international telecommunications revenues. Based on these reports, USAC assesses us for contributions to the FCC’s Universal Service Fund (“USF”). Payments to the USF are made on a quarterly and annual basis. The USF contribution rate is adjusted quarterly, was set at 38.1% for the fourth quarter of 2025 and 37.6% for the first quarter of 2026. At the present time, the FCC does not assess USF contributions with respect to bare transponder capacity (i.e., agreements for space segment only). 69 Table of Contents The FCC currently grants geostationary-like satellite authorizations on a first-come, first-served basis to applicants who demonstrate that they are legally and technically qualified and that the public interest will be served by the grant. To facilitate the provision of FSS in C-, Ku-, Ka- and V-band frequencies in the U.S. market, foreign licensed operators can apply to have their satellites either placed on the FCC’s Permitted Space Station List (for certain frequencies) or be granted a declaratory ruling (for other frequencies). In contrast, applications for non-geostationary-like satellite authorizations are generally dealt with through processing rounds, initiated by public notice or the submission of a lead application. Grants include conditions of license including deployment milestones. If more than one non-geostationary system from the same processing round intends to use the same frequencies, coordination is required; however, if coordination cannot be reached, the U.S. rules require that band splitting be applied. Non-geostationary systems from a later processing round must protect systems from earlier processing rounds. The bond and milestone requirements for U.S.-licensed satellites apply equally to foreign-licensed satellites granted U.S. market access. Under these licensing and market access rules, a bond must be posted, starting at US$1 million when a geostationary satellite or non-geostationary satellite constellation authorization is granted and escalating to up to US$3 million in the case of a geostationary satellite and US$5 million in the case of a non-geostationary satellite constellation. The entire amount of the bond may be forfeited if there is failure to meet the FCC’s milestone for the launch and commencement of operations of a geostationary satellite by the fifth anniversary of the grant date or the milestone for the deployment of 50% of the satellites in a non-geostationary satellite constellation by the sixth anniversary of the grant date. In addition to the loss of the bond, if the 50% non-geostationary milestone is not met, the license or market access authorization is reduced to the number of satellites in the constellation that were in their assigned orbit by the deadline. Similarly, if a non-geostationary operator meets the 50% milestone, it must deploy 100% of its authorized satellites by the ninth anniversary of the grant date, and if that milestone is missed, the license or market access authorization is reduced to the number of satellites that were in their assigned orbit by the deadline. According to current licensing rules and policies, the FCC will issue new satellite licenses for an initial 15-year term and will provide a licensee with an “expectancy” that a subsequent license will be granted for the replacement of an authorized geostationary satellite using the same frequencies. At the end of the 15-year term, a geostationary satellite that has not been replaced, or that has been relocated to another orbital location following its replacement, may be allowed to continue operations for a limited period of time subject to certain restrictions. As in other jurisdictions, the FCC is considering and may adopt new spectrum allocations for terrestrial mobile broadband and 5G, including in bands that are currently allocated to satellite services. The U.S. made no WTO commitment to open its DTH, DBS or digital audio radio services to foreign competition, and instead indicated that the provision of these services by foreign operators would be considered on a case-by-case basis, based on an evaluation of the effective competitive opportunities open to U.S. operators in the country in which the foreign satellite was licensed (“ECO-sat test”) as well as other public interest criteria. While Canada currently does not satisfy the ECO-sat test in the case of DTH and DBS service, the FCC has found, in a number of cases, that provision of these services into the U.S. using Canadian-licensed satellites would provide significant public interest benefits and would therefore be allowed. In order to secure FCC consent for the consummation of the Transaction Agreement, Telesat Canada, Telesat Corporation and several affiliated entities entered into a letter agreement under which they made commitments to the United States Department of Justice relating to such matters as cybersecurity; the access of non-U.S. persons or entities to certain facilities or information; the principal equipment that supports their core telecommunications or information services, functions, or operations; and the availability of certain records and communications in response to lawful U.S. law enforcement requests. This letter agreement replaces an earlier letter agreement that Telesat had entered into with the United States Department of Justice in order to secure FCC consent to the Skynet Transaction. The export of U.S.-manufactured satellites and technical information related to satellites, earth station equipment and provision of services to certain countries are subject to State Department, Commerce Department and Treasury Department regulations. 70 Table of Contents Brazil Regulatory Environment The Brazilian national telecommunications agency, ANATEL, grants exploitation rights for Brazilian satellites to companies incorporated and existing in Brazil. Landing rights of foreign satellites are granted to the owner of the space segment or the company that holds the right to operate it, in whole or in part, but the satellite capacity may only be commercialized in Brazil through the local legal representative. For Brazilian or foreign GEO satellites, the rights are granted conditional on payment of applicable fees, are valid for up to 15 years for additional periods limited by the life of the satellite and provided that the obligations already assumed are fulfilled. For NGSO, the term can be extended for additional 15 year periods regardless of the satellites’ lifetime. ANATEL has authorized us, through our subsidiary, Telesat Brasil Capacidade de Satélites Ltda. (“TBCS”), to operate FSS satellites at the 63° WL orbital location in Ku-band and Ka-band. In December 2008, TBCS entered into a 15-year Concession Agreement with ANATEL which obligates TBCS to operate a Ku-band satellite in accordance with Brazilian telecommunications law and contains provisions to enable ANATEL to levy fines for failure to perform according to the Concession Agreement terms. In May 2015, TBCS was the successful bidder in an ANATEL auction for Ka-Band and Ap30B Planned Ku-band frequency rights at the 63° WL orbital location and the associated 15-year Concession Agreements were signed on March 2, 2016. In November 2023, the aforementioned Ku-band rights granted at 63° WL were renewed for the usage by the Estrela do Sul 2 satellite until December 2026, and for the usage by the Telstar 19 VANTAGE satellite until December 2037. In addition, ANATEL has accredited TBCS as legal representative in Brazil of two non-Brazilian satellites: Telstar 12 VANTAGE at 15oWL and Anik G1 at 107.3oWL. Telesat Lightspeed is also authorized by ANATEL in Brazil via TBCS. United Kingdom Regulatory Environment We own and operate the portion of the ViaSat-1 satellite (115° WL) payload that is capable of providing service within Canada. ViaSat-1 operates in accordance with a license granted by the FCC in the U.S. However, by virtue of an intergovernmental arrangement between the U.S. and the United Kingdom, ViaSat-1 operates in accordance with ITU networks filed by the United Kingdom regulatory agency, OFCOM, on behalf of the Isle of Man. The Isle of Man is a British Crown Dependency and Isle of Man satellite frequency filings are filed with the ITU by OFCOM. ManSat Ltd. has been granted rights by the Isle of Man Government to manage Isle of Man satellite frequency filings. Both Telesat and Viasat have a commercial relationship with ManSat. Viasat and Telesat have agreed to cooperate in their dealings with ManSat with respect to the ViaSat-1 satellite for OFCOM and ITU purposes. The Ka-band and portions of the Ku-band frequencies on Telstar 12 VANTAGE, portions of the Ka-band frequencies on Telstar 18 VANTAGE and the Ka-band frequencies on Telstar 19 VANTAGE, are also filed with the ITU by ManSat on behalf of Telesat. Telesat also received its Satellite (Earth Station Network) license for Telesat Lightspeed from OFCOM. Landing Rights and Other Regulatory Requirements Many countries regulate satellite transmission signals to and from their territory. Telesat has been granted authorization for the space segment portion (often referred to as “landing rights”) of its GSO services in major market countries worldwide where this requirement applies. More specifically, in addition to the U.S., Canada, and Brazil, Telesat holds Landing Rights for its GSO satellites in Argentina, Bolivia, Dominican Republic, Ecuador, Egypt, Guatemala, Honduras, Nicaragua, Nigeria, Paraguay, Peru and Uruguay. In other countries, there is no such formal authorization requirement (sometimes referred to as “Open Skies”). Telesat also has authorizations for its GSO earth stations in Canada, Brazil and the U.S. Telesat Lightspeed regulatory approval Telesat has a deep understanding of international, regional and domestic regulatory/licensing framework applicable to a NGSO system operating in Ka-band. A comprehensive and methodical approach has been adopted to obtain all required authorizations in synergy/collaboration with partners prior to entry into service. 71 Table of Contents Telesat has already started acquiring landing rights and other approvals pertaining to a satellite operator. In particular, Telesat has already secured the equivalent of landing rights in the U.S., Canada, Bolivia, Brazil, Ghana, Peru, Nigeria, Paraguay, Guatemala and Mexico. Additional applications have been submitted in other countries where landing rights are required (e.g. Kenya), with more applications planned for 2026 based also on commercial priorities. Telesat has also been included in the Australian Foreign Space Objects Determination in May 2022, which paves the way for other licenses for Telesat Lightspeed in Australia. Furthermore, Telesat already holds licenses for Telesat Lightspeed landing stations (i.e. Telesat Lightspeed Earth Stations gateways) in Canada and has applied for a Landing Station License in France. Telesat is collaborating with Vocus on the application to acquire a Landing Station License in Australia and is engaging with regulators in other jurisdictions for additional landing station licenses. Finally, Telesat is engaging with regulators towards suitable licensing frameworks in a variety of countries/regions. In particular, the 2020 revision of European Decision ECC/DEC(15)041, which grants free circulation and exemption for individual licensing for user terminals like Telesat Lightspeed. Implementation of this Decision2 is all that is needed in most European countries for the user terminals authorization. Telesat also holds a Network License (covering operation of both the satellites and the user terminals) in the UK, a General Authorization for Satellite Electronic Communications Networks and Services in Italy and has applied for similar licenses in Germany and France. International Regulatory Environment — International Telecommunication Union The ITU, a Specialized Agency of the United Nations, is responsible for administering access by member states to frequencies in the radio portion of the electromagnetic spectrum. The ITU Radio Regulations set forth the process that member states must follow to secure rights for geostationary satellite networks and non-geostationary satellite systems to use frequencies, and the obligations and restrictions that govern such use. The process includes, for example, a “first-come, first-served” system for gaining access to certain frequencies and time limits for bringing the frequencies into use. Once brought into use, the ITU rules require that there not be a period longer than three years in which a satellite is not operating under the orbital parameters of a filing. In the case of non-geostationary satellite systems there are milestones associated with the deployment of additional satellites in the system. Canada, the U.S. and other member states have rights to use certain frequencies. Telesat has been authorized by its ITU filing administrations Canada, USA, Brazil and the United Kingdom of Great Britain and Northern Ireland to use certain frequencies. In addition, through a commercial arrangement with satellite operator APT, Telesat has the right to use certain frequencies for which the Kingdom of Tonga has the rights. Authorized frequencies include those already used by our current satellites, and additional frequencies at geostationary orbital locations or in non-geostationary constellations that have yet to be implemented. The ITU Radio Regulations also govern the process used by satellite operators to coordinate their operations with other satellite operators to avoid harmful interference. Each member state is required to give notice of, coordinate and register its proposed use of radio frequency assignments with the ITU. The filing and registration process is administered by the ITU Radiocommunications Bureau (“ITU-BR”). Once a member state has filed its proposed use of frequencies with the ITU, the ITU-BR examines the filing with respect to the various provisions of the International Radio Regulations (RR) to determine the administrations with which coordination is required. Member states are also invited to inform the other member states and the ITU-BR of any intended use that has the potential to cause interference to either existing operations. The member states are then obligated to negotiate with each other in an effort to coordinate the proposed uses and resolve interference concerns. If all outstanding issues are resolved in accordance with the various provisions of the RR, the frequencies are entered into the ITU’s Master International Frequency Register. Registered frequencies are entitled under international law to interference protection from subsequent or nonconforming uses. ____________ 1 https://docdb.cept.org/document/447 2 Currently implemented in 39 out of 46 CEPT countries: Albania, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Check Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Georgia, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lichtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, Ukraine 72 Table of Contents Under the ITU Radio Regulations, a member state that places a satellite or any ground station into operation without completing coordination could be vulnerable to interference from other systems and may have to alter the operating parameters of its satellite or ground station if harmful interference occurs. The process of ITU filing and notification in the MIFR of frequencies spans a period of seven years, or longer, depending upon the frequency band and the various provisions of the ITU Radio Regulations that may be invoked. Telesat’s authorized frequencies are in various stages of the coordination and notification process. Many frequencies have completed the process and have been registered in the MIFR. In other cases, coordination is on-going so that entry into the MIFR is pending or provisional. This is typical for satellite operators. Depending upon the outcome of coordination discussions, satellite operators may need to make concessions in terms of how a frequency may be used. The failure to reach an appropriate arrangement with such satellite operators may render it impossible to secure entry into the MIFR and result in substantial restrictions on the use and operations of our existing satellites. In the event disputes arise during the coordination process or thereafter, the ITU Radio Regulations set forth procedures for resolving disputes but do not contain a mandatory dispute resolution mechanism or an enforcement mechanism. Rather, the rules invite a consensual dispute resolution process for parties to reach a mutually acceptable agreement. Neither the rules nor international law provide a clear remedy for a party where this voluntary process fails. Other Orbital Spectrum We have been authorized by governments to additional frequencies in NGSO orbits or at GSO orbital locations that could be exploited in the future but for which currently there is no operational satellite. In general, our satellites are subject to various regulatory authorities, and associated obligations to respect the rights of other operators. Telesat’s operations may be limited or precluded by ITU rules or processes, and it is required to coordinate its operations with those of other satellite operators. See “Risk Factors — Risks Relating to Regulatory Matters” for more information about these risks. Satellite Operations To ensure continuity of service to our customers, we engineer satellites with on-board redundancies by including spare equipment on the satellite, and conducting standard testing programs that provide high confidence of performance levels. Our operations and engineering personnel are actively involved in all stages of the lifecycle of a satellite from the design through the deorbiting of the satellites that we procure. Our personnel work directly with our contractors at the contractor’s site to provide technical input and monitor progress during the satellite’s design, construction and launch phases. We monitor earth station operations and around-the-clock satellite control and network operations so that we can respond when problems occur. In addition, we have in place contingency plans, which we review on a regular basis, for technical problems that may occur during the life of a satellite. We also work closely with earth station manufacturers to test and implement the earth stations that we procure, and to resolve technical problems as they arise. Our primary consideration in managing our satellite telecommunications systems is to provide reliable and cost-effective services to our customers. We endeavor to limit the assumption of risk to activities under our control. Our space risk management program has been designed to achieve these objectives. Insurance and Risk Management Program Non-Insurance Risk Management Initiatives The risk management program begins at the technical analysis and design stage of the satellites. We implement certain redundancies on-board every satellite. Furthermore, we are involved in overseeing the manufacturing of all of our satellites. We require the manufacturer and its major subcontractors to follow assembly and quality assurance programs. We secure and maintain access to work performed by the satellite manufacturer and its subcontractors for the purpose of observing the quality and progress of such work. 73 Table of Contents Comprehensive testing is conducted at the manufacturer’s or a major subcontractor’s plant, which must meet industry standards and, in many cases, be supervised by our engineering personnel. Our engineering personnel review program management and construction schedules, engineering, design, manufacturing and integration and testing activities at both the manufacturer’s and major subcontractor’s sites. After construction is complete, we conduct final acceptance inspections of deliverable items. We believe it is crucial to have knowledge and insight into the launch vehicles being used to launch our satellites. Our engineering personnel are on site during all phases of the launch campaigns to observe launch preparations and launch operations. We believe that these quality assurance and manufacturing process monitoring programs help us reduce the risk of satellite failures and anomalies and result in lower launch and in-orbit insurance costs. Satellite Insurance Satellite insurance falls into three categories: Pre-Launch Insurance, Launch Insurance and In-Orbit Insurance. Pre-launch insurance: Pre-launch insurance has historically been purchased by the satellite manufacturer. Historically, we managed our pre-launch risks (i.e., risks during the manufacturing and transport phase) primarily through our contractual arrangements with the satellite manufacturer. For our Telesat Lightspeed program, we will purchase the transport insurance necessary to cover the satellites after they are shipped from the satellite manufacturer’s facilities. Launch insurance: The procurement of satellite launch insurance is, and has been, an integral part of our risk management program. It has been our practice to insure our launches where we bear the risk of loss. Typically, our launch insurance has covered the following events during the period of coverage: (i) delivery from the launch pad to orbit; (ii) separation from the launch vehicle; (iii) drift orbit maneuvers; (iv) solar array and antenna deployment; and (v) testing and commissioning. In-orbit insurance: In-orbit (life) insurance provides coverage for total and/or partial losses during the operating phase of a satellite. In-orbit insurance may be purchased at the same time launch insurance is procured (for new satellites) or once the satellite is in orbit, in the case of existing satellites, subject to functionality and insurance market conditions. Premium rates are dependent on the operating condition of the satellite and other satellites of the same design or using the same components as well as prevailing insurance market conditions. Typically, these insurance policies exclude coverage for damage arising from acts of war, anti-satellite devices, lasers and other similar potential risks for which exclusions are customary in the industry at the time the policy is written. In addition, they typically exclude coverage for satellite health-related problems affecting our satellites and other satellites of the same design or using the same components that are known at the time the policy is written. During 2024, satellite insurance market terms and conditions continued to deteriorate. Insurance underwriters sought significant premium rate increases and additional coverage restrictions. Accordingly, we determined that insurance was not available on commercially reasonable terms for most of our satellites. Since December 2025, only our T19V satellite is covered by In-Orbit insurance. Emergency Committee Protecting and maintaining service to customers is of vital importance to us. Our emergency committee is responsible for managing the restoration of services in the event of an actual or threatened critical condition, such as a satellite failure, the loss of telemetry and tracking ability or the loss of earth station functionality. Despite our efforts, satellite failures or other anomalies may occur. See “Risk Factors — Risks Relating to the Business of Telesat — Telesat’s satellites may fail to operate as expected due to operational anomalies resulting in lost revenues, increased costs and/or termination of contracts.” We may also experience a failure of our ground operations infrastructure. See “Risk Factors — Risks Relating to the Business of Telesat — Telesat may experience a failure of ground operations infrastructure or interference with its satellite signals that impairs the commercial performance of, or the services delivered over, its satellites or the satellites of other operators for whom it provides ground services, which could result in a material loss of revenues.” 74 Table of Contents Legal Proceedings We frequently participate in proceedings before national telecommunications regulatory authorities. For more detail, see “— Regulation.” In addition, we may also become involved from time to time in other legal proceedings arising in the normal course of our business. On January 21, 2026, Wilmington Savings Fund, FSB (the “Plaintiff”), in its capacity as Administrative Agent under the Credit Agreement dated as of March 28, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among Telesat Canada, Telesat LLC, and the guarantors party thereto, at the direction of the holders of a majority of the outstanding term loans under the Credit Agreement (the “Term Lenders”), issued claims in the State of New York against Telesat Canada and Telesat LEO CanHold Corporation and in the Province of Ontario against these same defendants along with Telesat Corporation, Telesat LEO Holdings ULC and the Directors of Telesat Canada. The claim relates to the transaction Telesat completed and announced on September 12, 2025, in which Telesat completed the distribution of 62% of the equity of its Telesat Lightspeed business (the “Transferred Equity”) from Telesat Canada to Telesat LEO CanHold Corporation, an indirect subsidiary of Telesat Corporation (“SpinCo” and the transaction, the “Transaction”). The Plaintiffs allege that Transaction (i) was in violation of sections 34 or 36 of the Canada Business Corporations Act (the “CBCA”); (ii) effected a result that was oppressive to, unfairly prejudicial to, or unfairly disregarded the reasonable expectations of the Term Lenders; (iii) breached Section 6.03 of the Credit Agreement claiming that the Transaction resulted in Telesat Canada transferring all or substantially all of its value (specifically the 62% of equity in Telesat Lightspeed) to SpinCo; and (iv) violated section 2 of the Ontario Fraudulent Conveyances Act, claiming that Telesat Canada was insolvent at the time of the Transaction and undertook the Transaction with the intent to harm and prejudice the Term Lenders. The Plaintiffs seek various relief including (a) remedying the effects of the Transaction on the Term Lenders, including but not limited to an order providing the Term Lenders with an interest in Telesat Corporation, SpinCo, and/or Telesat LEO Holdings ULC (along with its predecessor Telesat LEO Holdings Inc.) equal to the value of the Transferred Equity; (b) damages in an amount to be determined; (c) a declaration that the Transaction is void as against the Term Lenders; (d) an order pursuant to section 118(2) of the CBCA to restore to Telesat Canada any amounts distributed or paid to SpinCo pursuant to the Transaction and not otherwise recovered by Telesat Canada; and (e) costs of the proceedings. Telesat believes the lawsuits, filed at the direction of a group of distressed debt hedge funds, are without merit and intends to defend itself vigorously. Telesat Canada is in a contract dispute with its customers Shaw Satellite G.P. and Shaw Satellite Services Inc. (collectively, “Shaw”), regarding payments for services provided to Shaw on the Anik F2 satellite and related ground services pursuant to two agreements with terms that ended December 31, 2025. Shaw has purported to terminate both agreements alleging that the Anik F2 RF channel services failed to meet the required performance parameters. While the Anik F2 satellite experienced a North-South thruster failure in late 2021, and was transitioned to inclined operations in late 2022, the Anik F2 satellite remains capable of meeting the performance parameters in the agreements. Telesat Canada commenced an action against Shaw in the Ontario Superior Court of Justice on September 26, 2024 seeking, among other things, damages for breach of contract and breach of the duty of good faith in the amount of $45 million. Shaw has denied that Telesat is entitled to the damages claimed and, among other things, claimed damages against Telesat in the amount of $14 million for breach of contract. While we believe we have a strong position in this contract dispute with Shaw, no assurances can be made on a successful outcome to the dispute and, further, no assurances can be made on recovery of any amounts in connection therewith. We are subject to audits by taxing authorities in the various jurisdictions in which we operate. In Brazil, we are currently involved in a number of disputes with Brazilian tax authorities alleging that additional taxes are owed on revenue earned for the period 2002 to 2021. The total disputed amount for the period 2002 to 2021, including interest and penalties, is now $109.4 million. The disputes relate to the Brazilian tax authorities’ characterization of revenue. We have challenged the assessments. We believe the likelihood of a favorable outcome in these disputes is more likely than not and, as such, no reserve has been established. The Canadian tax authorities have reassessed the Company for $11.6 million relating to its Scientific Research and Experimental Development claims for the years 2016 and 2017. The Company has challenged the reassessments and paid 50% of the outstanding amounts in order to formally object. The Company believes the likelihood of a favorable outcome in these disputes is more likely than not and, as such, no reserve has been established. 75 Table of Contents Other than the above, we are not aware of any proceedings outstanding or threatened as of the date hereof by or against us or relating to our business which may have, or have had in the recent past, significant effects on our financial position or profitability. Environmental Matters We are subject to various laws and regulations relating to the protection of the environment and human health and safety (including those governing the management, storage and disposal of hazardous materials). Some of our operations require continuous power supply, and, as a result, current and past operations at our earth stations and other technical facilities include fuel storage, and batteries for back-up generators and uninterruptible power systems. As an owner or operator of property and in connection with current and historical operations at some of our sites, we could incur costs, including cleanup costs, fines, sanctions and third-party claims, as a result of violations of or liabilities under environmental laws and regulations. We are not aware, however, of any environmental matters outstanding or threatened as of the date hereof by or against us or relating to our business which would be material to our financial condition or results of operations. In a number of countries, regulators are considering and may adopt regulations to ensure the sustainable use of orbit and spectrum resources by satellites. For example, the European Commission is developing an EU Space Law which may contain design requirements for satellites, the compliance with which would be needed for obtaining the right to serve a country within the EU; the United States has an open proceeding (“Mitigation of Orbital Debris in the New Space Age”, see IB Docket No. 18-313) through which new requirements aimed at reducing orbital debris may be applied to NGSO satellite systems seeking US market access; and, the United Nations Office for Outer Space Activities (UNOOSA), through its Committee on the Peaceful Uses of Outer Space (COPUOS), is expected to further develop its “Guidelines for the Long-Term Sustainability of Outer Space Activities” first published in 2019. Certain of these laws and regulations address risks related to generating orbital debris. 76 Table of Contents C. Organizational Structure The following chart reflects our organization structure (including the jurisdiction of formation or incorporation of our material subsidiaries.) 77 Table of Contents D. Property, Plants and Equipment For a description of our property, plants and equipment, see Item 4.B. “Business Overview”.