Starlink is an LEO satellite internet constellation operated by Elon Musk’s SpaceX.

Starlink has shifted the competitive landscape for African connectivity, prompting telecom companies to look for opportunities in previously underserved areas.

According to GlobalData, a data and analytics company, with Starlink promising to launch in 14 new African markets by 2025, pressures on traditional telco incumbents will only increase, necessitating greater collaboration.

Furthermore, the research company notes that incumbents are now developing alternative Low Earth Orbit (LOE) satellite connectivity to maintain market position and capitalise on new opportunities.

GlobalData went on to say recent tie-ups – including the Orange-Vodacom deal in Democratic Republic of Congo for network deployment in rural areas; Safaricom partnering with local satellite operator ESD Kenya; ZainTech partnership with Arabsat covering North Africa; as well as Vodacom and MTN’s own desire to boost connectivity across their footprint via LEOs – point to this trend.

Ismail Patel, senior analyst, enterprise technology and services at GlobalData, comments: “The rapid shift in focus by Africa’s telcos can largely be attributed to a confluence of factors, with Starlink being a key driver. These telcos are increasingly seeing unserved and underserved regions of the continent as opportunities rather than investment dead ends.”

He continues: “Starlink has undeniably changed the competitive field for connectivity, resulting in telcos scrambling for a piece of the rural greenfield opportunity that was neglected for a considerable time.

“The global LEO is competitive on pricing and offer a quality connection that has not been the norm for many in Africa. 

"But not all is lost for the continent’s telco groups, as they can typically offer the type of tech-based services to SMBs that a global LEO cannot, such as – inter alia – improved supply chain management, e-health, adverse weather mitigation, mobile payments, and natural resource management.”