Starlink races to gain internet market share in Africa

Starlink, the satellite internet company owned by SpaceX, is set to expand its services in more than 20 markets across Africa, aiming to bridge the digital divide on the continent. The company's recent launch in Nigeria and regulatory approval for Rwanda have set the stage for what could potentially disrupt the internet service landscape in Africa. In an exclusive interview with CNBC Africa's Julius Bizimungu, Thelma Efua Quaye, Head of Digital Infrastructure Programme at Smart Africa, discussed the implications of Starlink's entry into the African market. Quaye emphasized the significance of a new regulatory approach to accommodate non-terrestrial solutions like Starlink. She highlighted that while Africa has traditionally relied on terrestrial infrastructure for regulatory frameworks, the pivot towards non-terrestrial regulation marks a monumental shift for the continent. The entry of Starlink holds the promise of swiftly addressing the coverage gap, with an estimated 190 million people in Africa currently lacking internet access. The key theme revolves around accessibility, affordability, and collaboration. By leveraging satellite technology, Starlink aims to reach underserved rural areas that have been traditionally challenging to connect through conventional means. However, the affordability of Starlink's services poses a hurdle, with pricing significantly higher than existing internet service providers in some African markets. Quaye emphasized the need for a collaborative approach involving local stakeholders to drive down costs and make connectivity more accessible to a broader segment of the population. One of the primary concerns discussed in the interview is the affordability of Starlink's services in comparison to traditional ISPs. Quaye acknowledged the pricing disparity and outlined a community networking model that could potentially make Starlink more accessible through cost-sharing among community members. This approach aligns with Smart Africa's goal of reducing the cost of broadband services to ensure widespread access. Quaye highlighted the reliability of Starlink's internet services, noting advancements in satellite technology that offer a more robust and dependable connection, even in adverse weather conditions. The company's extensive network of satellites contributes to ensuring a consistent and reliable internet experience for users across Africa. In terms of competition, existing ISPs have expressed concerns about Starlink's entry into the market, fearing potential displacement. However, Quaye emphasized the importance of collaboration over competition, emphasizing that partnerships between Starlink and local ISPs could lead to mutually beneficial outcomes. By pooling resources and expertise, both parties can work towards expanding connectivity and driving down costs for consumers. In conclusion, Starlink's foray into the African internet market represents a significant opportunity to accelerate digital transformation and enhance connectivity across the continent. While challenges remain, particularly in terms of affordability and market dynamics, the potential benefits of Starlink's innovative approach are substantial. By fostering collaboration and leveraging satellite technology, Africa stands to gain a more inclusive and accessible internet ecosystem.