Australia has canceled the planned multi-billion dollar Geostationary Earth Orbit (GEO) satellite communications project with Lockheed Martin, which was intended to establish the country's first sovereign-controlled satellite system over the Indo-Pacific. The decision, announced by the Department of Defence, reflects a strategic shift towards a multi-orbit satellite capability to enhance resilience amid rapidly advancing space technologies and evolving threats. Prime Minister Anthony Albanese emphasized that the defence budget is increasing, but the government is prioritizing acquisitions to align with national interests. Critics, including Shadow Defence Minister Andrew Hastie, have condemned the cancellation as detrimental to Australia's strategic capabilities. Despite the project's cancellation, the government plans to invest A$9-12 billion in space capabilities. The move highlights the dynamic nature of the defense space sector and the challenges faced by legacy defense companies in adapting to new technological demands.