A domestic launch system like
Reaction Dynamics that can handle relatively low cost, small capacity launches would be extremely useful for the small cube-type satellites that are increasingly common and extremely useful for communications constellations.
We (the CAF) don't currently use Cubesats. And like I said earlier, if we're going down that road, it requires real investment. Not just a desire to randomly launch more space junk.
The government's first commercial priority should be Telesat's Lightspeed. There's a whole pile of strategic implications that those outside space don't understand.
1) MDA is building a production line that will continuously pump out satellites for Telesat. This is the first time, Canada will have the ability to reconstitute in Space.
2) MDA is building the satellite buses with extra room. In theory, this allow the government to buy extra payloads on there too allow other capabilities (SIGINT, Missile Warning, surveillance of space, etc). It's a question on how willing the government is to spend.
3) Telesat has chosen an altitude that is above Space X. This has some downsides on the comms business. But it has real value for certain military applications.
4) Constellations create shells which has control implications. A constellation at a given altitude increases conjunction risk. This means that nobody else can then launch through your altitude without risking collision. Everyone has to tell you when and where they will go through. That information is valuable.
CAF Space actually does understand the value of Canada's geography and capabilities in space. Given enough money, we could do a lot more. I hope we start looking at offensive capabilities soon.