- African telcos pivot to underserved regions
- New strategies launched to counter LEO satellite connectivity
What happened: Starlink drives telecom rivals to rural Africa
Starlink’s rapid expansion in Africa is intensifying competition for traditional telecom providers, according to a recent report by GlobalData. With African governments uncertain about protecting incumbent telecom companies, these firms are increasingly focusing on underserved regions to safeguard their market positions.
This shift is driven by the need to address the challenge posed by low Earth orbit (LEO) satellite connectivity, which Starlink is leveraging to target both underserved areas and higher-value customers such as small businesses and home offices. Recent strategic initiatives include the Orange-Vodacom deal in Uganda for rural network expansion, Safaricom’s partnership with ESD Kenya, ZainTech’s collaboration with Arabsat for North Africa, and Vodacom and MTN’s efforts to boost connectivity via LEO satellites.
These moves highlight the growing recognition that previously neglected rural areas present significant opportunities for growth.
Also read: T-Mobile and Starlink begin large-scale satellite connectivity testing
Also read: Telstra partners with Starlink to enhance remote connectivity
Why it’s important
Starlink’s entry into Africa has significantly altered the competitive landscape for connectivity. Its focus on underserved regions and higher-value customers is putting pressure on traditional telecom providers.
While Starlink’s market share is still relatively small, its potential to build a loyal customer base in these areas is a growing concern for incumbents. African governments are also divided on how to regulate Starlink, with some requiring licenses and others seeing the potential economic benefits of its connectivity in rural areas.
This regulatory divergence, combined with Starlink’s planned expansion into 14 new African markets in 2025, is expected to further intensify competition. However, traditional telcos still have an opportunity to offer tech-based services to small and medium-sized businesses that Starlink cannot, such as improved supply chain management, e-health, and mobile payments.
