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The recent licensing of Starlink, SpaceX’s satellite constellation, in a few African states, has sparked excitement among many across the continent, hopeful for more affordable data prices.
While this enthusiasm is understandable in a continent where internet penetration is only 46%, it is essential to recognise that services offered by Starlink, and similar satellite companies, aren’t universally relevant to all market segments, especially to the mass market.
Despite Starlink’s promise of broader coverage, the initial hardware costs and subscription fees could remain prohibitively high for many Zimbabweans.
Presently, Starlink sells its satellite dish at US$599, with a monthly internet fee of US$110 for residential buildings, offering speeds of up to 100mbps. These prices contrast sharply with the US$5 to US$7 monthly average revenue per user, typically paid by subscribers of mobile network operators.
At present, Starlink’s potential lies mainly in niche markets, such as businesses clients in sectors like agriculture, mining, and tourism. In urban areas, it is unlikely to replace existing mobile offerings for the average consumer, although it may find traction among middle-to-high-income individuals in low-density, high-income areas not covered by fibre optics.
Notwithstanding the looming competition, state-owned telecoms operator NetOne remains confident in maintaining its market position, asserting that its offerings cater to a distinct segment compared to Starlink’s focus on remote and underserved areas.
“We have alternative strategies involving global satellites, but not directly tied to Starlink,” said NetOne’s chief executive, Raphael Mushanawani.
“Starlink has its niche, and we believe we have ours to protect. We’ll remain competitive and ensure our customers are covered.”
While low earth orbit (LEO)-based technology like Starlink could bridge the digital divide between urban and rural areas, experts caution African governments to approach the issue with care due to potential digital and cyber security implications.
“However, as positive as some of the aforementioned outcomes of the deployment of Starlink and other LEO-based technologies are, the known and unforeseen digital and cyber security implications of such rollouts for countries on the African continent should be a major concern and one to closely watch for,” said Nigerian researcher Daniel Ugwu.
“This becomes even more critical considering the fact that programmes by companies such as Starlink are being heavily funded by the US government, whose interests may not be clearly known at the moment,” he said.
This view was also reinforced by Mviyo Technologies CEO Jacqueline Ntaka, who noted that the Zimbabwe government should carefully consider all the pros and cons before licensing Starlink.
“Starlink is a monopoly that could undermine the competition and innovation of other internet providers, especially local ones, that can offer more affordable and tailored solutions for the needs and preferences of Zimbabweans,” she said.
Ntaka added that the SpaceX product may also create a digital divide between those who can afford its service and those who cannot, as well as between urban and rural users, where the availability and quality of the service could vary significantly.
“Zimbabwe should not accept Starlink without negotiating the terms and conditions that would protect the interests and rights of its citizens. Zimbabwe should also explore other alternatives and options that could provide better and more ethical internet access for its people, such as investing in its infrastructure and collaborating with other regional and international partners.
“Starlink may look like an easy and convenient solution for Zimbabwe’s internet problems, but it is not a magic bullet,” she said.
Online Reporter