Starlink Now In 19 African Countries: Are Our Telcos Losing It? Should Governments Step In?

Let’s talk about a topic that’s stirring debates across boardrooms, coffee shops, and government corridors alike: Starlink’s expansion into Africa. Sometime last year, I was travelling to Harare, Zimbabwe from Nairobi, Kenya, and then had a 3-hour layover in Lilongwe, Malai. At the airport, I encountered very high-speed internet, which made it easy for me to work as I waited for my connection flight, actually faster than what I was using back in Nairobi. I found out and learnt that it was Starlink. So, the Malawi government installed Starlink at their main airport despite there being local telcos. As of today, Starlink operates in 19 African countries, and that number keeps growing. While this might sound like the dawn of digital liberation for the continent, it also raises important questions about the future of local telcos and whether governments should intervene.

Let me break it down for you.

The Arrival of Starlink Was A Game-Changer?

Starlink’s promise is simple: high-speed internet anywhere, anytime. For many Africans in rural or underserved areas, this is nothing short of revolutionary. Traditionally, people in these areas have either been stuck with sluggish connections or entirely left out of the digital revolution.

Take Nigeria, for example. With Starlink's entry, farmers in remote villages can now access markets online. Students no longer have to walk miles to find a stable connection for their online classes. Isn’t that incredible?

But here’s the catch: Starlink’s monthly fee—approximately $50—is far from affordable for the average African household, where internet costs often account for a significant portion of income. Although Starlink recently launched a cheaper option with a monthly subscription fee of about $10, the initial setup fee (gadget price) is still high. Compare this to local telcos, which offer more affordable (albeit slower and less reliable) options. Are these telcos being edged out by an elite service that many can't afford, or are they simply being outpaced in terms of innovation?

Are Telcos Losing Their Edge?

This is where it gets tricky. Local telcos in Africa have held a monopoly on the internet market for years, yet many have struggled to offer reliable services. Dropped calls, slow internet speeds, and exorbitant data prices are frustratingly common.

Take Safaricom in Kenya, for instance. While Safaricom dominates the market, it has faced criticism for its high data costs. On the other hand, in countries like South Africa, ISPs such as MTN and Vodacom are trying to roll out 5G infrastructure, but it’s been a slow and expensive process.

Now comes Starlink, an outsider that skips the infrastructure bottleneck with low-orbit satellites. It doesn’t need cell towers; it doesn’t face local bureaucracy. It just works.

Is it any wonder that many Africans are ready to jump ship?

Should Governments Step In?

Here’s the million-dollar question: Should governments let Starlink dominate, or should they protect their local telcos?

Consider the case of India, where the government restricted Starlink’s operations until it complied with local regulations. Their rationale? Protecting the local telecom industry and ensuring fair competition. But while this approach buys time for local players, it could also stifle innovation and limit consumer choices.

In contrast, the Philippines embraced Starlink as a partner to bridge its connectivity gap. By collaborating with both local telcos and Starlink, the government ensured that rural communities benefited without entirely sidelining domestic players.

So, what should African governments do? The answer might lie in collaboration rather than competition. What if telcos partnered with Starlink to extend their reach? Or, alternatively, what if governments incentivized local players to step up their game while regulating costs to keep internet accessible for all?

The Bigger Picture

This debate isn’t just about internet providers. It’s about the future of Africa’s digital economy. It’s about ensuring that everyone, from farmers in Uganda to entrepreneurs in Senegal, has an equal shot at participating in the global digital revolution.

Starlink’s entry into Africa is a wake-up call. It’s urging telcos to innovate, governments to regulate, and consumers to demand better services. If done right, this could be a win-win for everyone.

What’s your take? Is Starlink the hero Africa needs, or are we at risk of creating a digital divide between those who can afford premium services and those who can’t? Should governments step in, or should the market regulate itself? Let me know your thoughts in the comments! Learn more from Courselana courses.

AUTHOR'S DECLARATION: I leverage AI for research and initial drafting of the key points in this article. I decide on the article's topic, create an appropriate prompt, and then use GPT-4 to search the web to generate relevant points for the article. However, to create the final article, I put together the points, add personal context, and edit to ensure it's beneficial to my audience, and so that it's NOT 100% AI-generated.