Elizabeth Antidius Shumbusho | Africa Guardian
SpaceX’s Starlink internet service is rapidly reshaping Africa’s telecommunications landscape by offering faster connectivity and reaching underserved rural areas. While it plays a positive role in providing vital services like telemedicine and digital education, its limited local involvement, regulatory hurdles, and business practices raise concerns.
In less than two years, Starlink, SpaceX’s satellite internet service, has made significant strides in Africa. The service, which operates through a constellation of over 6,000 satellites, offers faster internet speeds than many terrestrial providers and extends connectivity to remote areas that lack reliable infrastructure. This has proven especially beneficial for rural regions across 17 African countries, with telemedicine and digital education resources standing out as notable contributions.
However, Starlink’s business model casts a shadow over these benefits. With few African employees and limited investments in local infrastructure, the company’s growth has been accompanied by aggressive practices, such as unexpected price hikes. Regulatory challenges have also emerged, including a recent case in Namibia, where Starlink was ordered to stop operating for lacking a local license.
“Starlink has two significant advantages,” says Nate Allen, a cybersecurity expert at the African Center for Strategic Studies. “The first is its use of low Earth orbit satellites, which allow for much faster internet speeds compared to terrestrial providers. The second is its potential for rapid expansion, which could pose a significant challenge to local telecoms if it continues to grow.”
Allen expresses concern over the potential for Starlink to dominate the market, warning that if it becomes a monopoly, it could control pricing. “In certain niches, especially where fast internet is needed, Starlink is already approaching monopoly status.”
The case of Okaka, a rural town in Nigeria’s Oyo State, highlights both the positive and negative aspects of Starlink’s influence. For over a year, students in Okaka have accessed high-quality educational resources through Starlink, supported by a scholarship program from Space in Africa. However, following an unexpected price hike in September, there are concerns about the sustainability of this progress. Although Starlink reversed the price increase after pressure from the Nigerian government, it hinted that the increase would be implemented once regulatory issues were resolved. This price flexibility is due to Starlink’s month-to-month service model, which allows the company to change terms at will.
“Initially, Starlink used global pricing, but soon realized they needed to adjust for the African market,” says Temidayo Oniosun, director of Space in Africa. In some countries, the service now costs between $20 and $30, much lower than the $100 monthly fee in the United States. However, this disruption has led to a loss of subscribers for local telecom companies.
The potential for Starlink’s expansion in Africa is considerable. Internet connectivity on the continent averages 47%, below the global average of 66%. Despite the relatively low cost of Starlink’s service, questions remain about how affordable it truly is for many Africans, particularly in rural areas where mobile internet is often expensive and slow.
Michael Markovitz, a media leadership expert at the University of Pretoria, raises another key issue: “How many subscribers does Starlink actually have?” In Nigeria, the company ranks as one of the smaller providers, with fewer than 30,000 users, compared to MTN in South Africa, which has nearly a million.
Starlink’s business model also raises concerns about its impact on local telecom companies. Unlike many African-owned or state-run telecoms, which employ thousands and contribute substantial tax revenue, Starlink has minimal local presence. In Kenya, for example, Safaricom supports 1.2 million jobs and directly employs around 6,000 people.
“The problem with Starlink,” says Allen, “is that it doesn’t have a significant footprint on the continent. Its operations don’t create many jobs or contribute much to local economies.”
Despite these concerns, Allen believes Starlink will continue to expand, especially in sectors that require fast connectivity. However, much of its future will depend on its ability to navigate regulatory challenges and its competition with other providers.
Regulatory issues continue to complicate Starlink’s growth. Countries like Namibia and Cameroon have recently forced the company to cease operations due to a lack of licenses. In South Africa, Starlink has yet to obtain an operator’s license, partly due to the country’s requirement for 30% Black ownership in telecom companies. While reports suggest that Starlink may receive special consideration, Markovitz believes that such exceptions will be difficult to grant in a democratic setting.
“Elon Musk isn’t in a rush,” Markovitz concludes. “He’s the richest man in the world and has a long-term strategy that includes launching more satellites. This will continue, regardless of local regulations.”
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