The African continent, with its vast landscapes and diverse populations, has long struggled with the challenge of last-mile connectivity. Despite significant investments by telecom companies and governments, over 60% of Africans remain unconnected to the Internet. Enter Starlink, Elon Musk’s ambitious satellite internet project, promises to revolutionize how Africans connect to the digital world. But is this a win for Africa, or is it the beginning of a disruptive storm that could reshape the entire telecom industry —potentially to Africa’s detriment?
The promise of Starlink: solving last-mile connectivity
One of the most significant challenges in Africa’s connectivity landscape is the high cost and complexity of reaching rural and low-density areas. Traditional telecom infrastructure, particularly fiber networks, require massive investments that are difficult to justify in regions where the return on investment (ROI) is slow due to lower purchasing power. This has led to a persistent digital divide, with urban areas enjoying relatively good connectivity while rural communities are left behind.
Starlink with its constellation of low-Earth orbit (LEO) satellites, offers a game-changing solution. By providing Internet access directly from space, Starlink can bypass the need for expensive ground-based infrastructure, making it possible to deliver reliable, high-speed Internet to even the most remote corners of Africa. This has the potential to bring millions of people online, fostering economic growth, improving education, and enhancing access to information.
Disrupting the status quo: the threat to ISPs and telecoms
However, Starlink’s entry into the African market is not without controversy. Established internet service providers (ISPs) and telecom companies have invested billions in their existing infrastructure, particularly in urban areas where the concentration of users makes these investments more profitable. For these companies, Starlink represents a significant threat. The ability to offer high-speed internet without the need for expensive infrastructure could undercut traditional providers, driving down prices and eating into their market share.
Safaricom, one of Africa’s leading telecom companies, is a prime example. With its dominant position in Kenya, Safaricom has benefited from a quasi-monopoly in many regions.
The introduction of Starlink could disrupt this balance, forcing the company to rethink its strategy and potentially lowering the cost of internet services across the board. While this may seem like a win for consumers, the reality is more complex. Lower prices could lead to reduced revenues for ISPs and telecoms, making it harder for them to justify further investments in infrastructure and innovation.
The resistance: Safaricom and the fight to maintain control
It’s no surprise that companies like Safaricom might resist Starlink’s entry into the market. By introducing a new player that challenges the status quo, the competitive landscape is forced to evolve. For years, ISPs and telecoms in Africa have enjoyed relatively stable markets where competition has been limited, and price-setting has been within their control. Starlink threatens to upend this, bringing in a level of competition that could dramatically reduce internet costs for consumers.
But at what cost? The fear among existing providers is that the introduction of Starlink could lead to a race to the bottom in terms of pricing, potentially squeezing out smaller players and consolidating power in the hands of a few large corporations. This, in turn, could reduce the diversity of services available to consumers and stifle innovation in the long run.
The innovation dilemma: A call to action for ISPs and telecoms
For ISPs and telecoms in Africa, the message is clear: adapt or die. The traditional business model of simply providing internet connectivity is no longer enough. To stay competitive, these companies must innovate, offering new services and applications that add value beyond basic internet access.
This shift requires a fundamental rethinking of how these companies operate. Rather than focusing solely on infrastructure, they need to move into the service and application layers, where the real opportunities for growth lie. By developing and offering new digital services —such as cloud computing, cybersecurity solutions, and digital payment systems —telecoms can create additional revenue streams that offset the declining profitability of traditional internet services.
Moreover, there is a growing recognition that internet connectivity is just the foundation. The future of telecoms lies in the ability to provide integrated solutions that combine connectivity with value-added services. For example, ARED’s edge technology offers a glimpse of what this future could look like. By providing a local infrastructure that supports a suite of applications, including AI-powered services and data analytics, ARED is helping businesses in Africa manage their operations more efficiently and cost-effectively.
See also: ARED plans to expand its impact to Uganda
The foreign technology conundrum: A double-edged sword
One of the more contentious issues surrounding Starlink’s expansion into Africa is the fact that it is a foreign-owned technology. While the benefits of satellite internet are clear, the reality is that much of the revenue generated by Starlink will flow out of Africa, going to a foreign company rather than staying within the continent.
This raises important questions about economic sovereignty and the long-term implications of relying on foreign technology for critical infrastructure. African governments will need to carefully consider how to manage this relationship, potentially through taxation or licensing agreements that ensure some of the economic benefits of Starlink’s operations stay within the continent.
Moreover, there is an argument to be made for African governments to invest in their satellite infrastructure. While this would require significant investment, it could provide a more sustainable solution in the long run, ensuring that the benefits of satellite internet are more evenly distributed and that the continent retains greater control over its digital future.
The excitement and the challenge: A future of endless possibilities
Despite the challenges and controversies, there is no denying that Starlink’s expansion into Africa is an exciting development. For millions of people who have been left on the wrong side of the digital divide, the promise of reliable, high-speed internet is transformative. It has the potential to unlock new opportunities for education, business, and social development, driving progress across the continent.
But for ISPs and telecoms, this is a wake-up call. The old ways of doing business are no longer sufficient in a world where competition can come from space. The companies that will thrive in this new environment are those that embrace innovation, invest in new technologies, and find ways to add value beyond basic connectivity.
See also: OP-ED: bridging Africa’s digital divide the Jumia-Starlink way
The road ahead: what does the future hold?
As Starlink continues to expand its footprint in Africa, the question remains: what will the future of the continent’s internet landscape look like? Will the entry of satellite internet drive down costs and increase access for all, or will it lead to a consolidation of power among a few large players, stifling innovation and reducing choice for consumers?
One thing is certain: the internet market in Africa is on the cusp of a major transformation. The companies that succeed will be those that recognize the need to adapt, embrace new technologies, and find ways to offer their customers more value. For African governments, the challenge will be to balance the benefits of increased connectivity with the need to protect their economic interests, ensuring that the digital future is one that benefits all Africans, not just a select few.
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Conclusion: The revolution is here
Starlink’s entry into the African market is both a challenge and an opportunity. It has the potential to bridge the digital divide and bring millions of people online, but it also poses significant risks for existing players in the telecom industry. For consumers, the prospect of lower prices and better service is enticing, but the long-term implications of relying on foreign-owned technology must be carefully considered.
As the internet landscape in Africa continues to evolve, the companies that will succeed are those that are willing to innovate, invest in new technologies, and find ways to add value beyond basic connectivity. The revolution is here, and the only question remains: who will rise to the challenge, and who will be left behind?
The story of Starlink in Africa is just beginning, and it’s a story that will be watched closely by the world. Whether it ends in triumph or tragedy, one thing is certain: the future of the internet in Africa will never be the same again.
Editor’s Note: The article was written in collaboration with Henri Nyakarundi, ARED founder and CEO
