LAGOS — Starlink’s satellite internet rollout across Africa is stirring up complaints from telecommunications companies and internet service providers (ISPs), who claim the Elon Musk-owned service creates an uneven playing field.
Telcos, such as Kenya’s largest mobile operator Safaricom, argue that Starlink’s entry into the market threatens the significant investments they have made in building local infrastructure.
In a leaked memo to Kenya’s communications regulator, Safaricom called for stricter regulations on satellite internet providers, suggesting they should be required to partner with local mobile operators instead of receiving independent licenses. Safaricom, which is partly owned by the government, highlighted the difficulty in holding satellite providers accountable, as they often operate through third parties and resellers without having a physical presence in the country.
Similar concerns have emerged across the continent, with ISPs and telecoms in Zimbabwe, Nigeria, and Cameroon echoing Safaricom’s complaints. These companies argue that Starlink benefits from lenient regulatory requirements and low operational costs, as it has little local presence, making it challenging for regional firms to compete on pricing. While traditional telcos employ thousands across Africa, Starlink operates with minimal staff on the ground.
Despite the criticism, the competition from Starlink has prompted local providers to improve their offerings. For instance, Safaricom doubled the speed of its fiber internet packages in response to Starlink’s presence in Kenya. ISPs in Zimbabwe have taken similar steps to upgrade services.
Starlink officially entered the Kenyan market in July 2023, rapidly increasing satellite internet subscribers from fewer than 500 to nearly 5,000 in just nine months. The company’s success has been fueled by aggressive marketing, affordable pricing, and hardware rental options. By September, Zimbabwe became the 16th African nation to gain access to Starlink’s services, after the country’s government granted it a license in May 2023. In response, state-owned TelOne partnered with OneWeb to offer satellite internet, and Liquid Home, Zimbabwe’s largest fixed-line ISP, slashed its prices.
Starlink and other Low Earth Orbit (LEO) satellite providers like OneWeb and Telesat are expected to capture more market share from traditional telecoms, especially in remote areas where mobile internet services are limited. However, there are concerns about tax revenue losses as these companies operate without physical offices, bypassing certain tax obligations.
While some view Safaricom’s concerns as an effort to protect its market share, industry experts acknowledge that telcos across Africa have invested heavily in infrastructure to provide mobile internet connectivity. For instance, in Nigeria, Starlink has already become the third-largest internet provider just two years after its launch. However, experts note that Starlink mainly competes with standalone ISPs rather than mobile operators, which serve over 160 million active internet subscribers.
Starlink’s success hinges on its ability to expand coverage in remote areas. In Nigeria, the company has made strides by providing satellite backhaul for more than 100 rural base stations operated by Africa Mobile Networks. Despite its growth, Starlink could face challenges in scaling operations in countries with strong domestic telecom providers, particularly those that are state-owned.
In South Africa, Musk is in talks with President Cyril Ramaphosa to bring Starlink to his home country, where officials see the service as a solution to bridging the digital divide. South Africa’s Communications Minister, Solly Malatsi, expressed support for Starlink, citing its potential to fill gaps in broadband infrastructure. However, some experts remain sceptical, noting that fibre and wireless technologies may offer more sustainable long-term solutions.
While Starlink’s brand and advanced technology are gaining traction with African governments, not everyone is convinced of its staying power. Nigerian ISP CEO Diseye Isoun questioned Starlink’s impact on a market dominated by mobile network-based internet. In South Africa, there are also concerns about whether satellite internet is merely a temporary fix for rural connectivity.
As Starlink continues its expansion across Africa, it faces both opportunities and significant challenges in balancing its growth with the interests of local telecom providers and governments.
Source: Semafor