News / National
Calls for stronger regulation of Starlink's expansion in Africa
14 Nov 2024 at 09:52hrs | Views
The rapid expansion of Starlink's satellite internet services across Africa has prompted a growing chorus of concern from local industry experts, telecommunications companies, and internet service providers (ISPs), who are calling for stronger regulatory oversight.
As demand for high-speed internet access surges across the continent, particularly in remote areas, local stakeholders are advocating for policies that will protect their investments, promote fair competition, and preserve jobs within the local telecom and ISP sectors.
Starlink, a global satellite internet provider owned by Elon Musk's SpaceX, has made significant inroads into the African market, offering internet services through low-orbit satellites. However, critics argue that the company's operations undermine the growth of local telecom industries due to its minimal investment in infrastructure and its relatively low regulatory obligations.
In Zimbabwe, where telecommunications companies have invested heavily in expanding network connectivity, experts warn that Starlink's entry could destabilize the local market.
Tinashe Ruswa, a Zimbabwean telecommunications analyst, expressed concern about the competitive disparity between Starlink and local operators, which are burdened by the costs of building and maintaining infrastructure. "The arrival of Starlink means we're competing with a company that can sidestep the substantial infrastructure costs that we face," Ruswa said. "Local operators have not only invested in infrastructure but also in people, employing thousands in installation, maintenance, and customer service roles that are crucial to our economy."
Temidayo Oniosun, CEO of Space in Africa, a media and analytics company focusing on the African space and satellite industry, echoed similar concerns. Speaking to African Business Magazine, Oniosun stated, "We have a foreign company coming in, doing the bare minimum, and taking market share from companies that have invested heavily in the continent and are providing jobs for thousands of people." He called on regulators to ensure that African-owned businesses and jobs are protected in the face of such external competition.
In Zambia, local telecom companies such as Zamtel and Airtel Zambia have also raised alarms over Starlink's potential impact on the local industry. Charles Mwansa, a network engineer in Lusaka, warned that the lack of a robust regulatory framework could undermine the viability of Zambia's telecommunications sector. "Local companies have invested significantly in laying fibre, establishing mobile towers, and training local staff. Allowing a company like Starlink to operate without similar obligations could destabilize the industry," he said.
Advocates for fair competition are also questioning the value Starlink brings to the local economy. Steve Song, an internet access advocate at the Mozilla Foundation, criticized satellite providers for what he described as an "economically lopsided" model, where they extract value without investing in local economies. "Starlink's reluctance to invest in ground stations in many African nations exemplifies a value-extraction model that doesn't address the structural needs of local economies," Song explained.
In Kenya, Safaricom, the country's largest mobile network operator, has expressed concerns about the risks posed by satellite internet services to national security and local network quality. In a formal letter to the Communications Authority of Kenya (CA), Safaricom noted that Starlink's satellite services span multiple territorial borders and could lead to illegal service provision and interference within Kenya's borders. The company has recommended that satellite operators work in partnership with local licensees, rather than holding independent operating licenses, to better safeguard local interests.
Local industry leaders across the region agree that while Starlink has the potential to extend internet access to remote areas, fair competition requires that satellite providers adhere to the same regulatory and infrastructure obligations as traditional telecom companies.
James Ndongwe, a Zimbabwean economist, acknowledged the benefits of satellite internet but cautioned that the long-term impact on local economies must be carefully considered. "Starlink can play an important role in boosting connectivity in remote areas," Ndongwe said. "But at what cost to local economies? If they don't contribute to local infrastructure, taxes, or employment, we need to think carefully about the long-term effects on our industry."
As Starlink continues its expansion across Africa, calls for regulatory reforms are expected to intensify. Experts and stakeholders argue that the goal is not to block progress in satellite internet but to ensure that the benefits are shared equitably.
"Digital inclusion should be for everyone," Mwansa added, "and that means setting up systems where international players contribute as much to our growth as they stand to gain from it."
As demand for high-speed internet access surges across the continent, particularly in remote areas, local stakeholders are advocating for policies that will protect their investments, promote fair competition, and preserve jobs within the local telecom and ISP sectors.
Starlink, a global satellite internet provider owned by Elon Musk's SpaceX, has made significant inroads into the African market, offering internet services through low-orbit satellites. However, critics argue that the company's operations undermine the growth of local telecom industries due to its minimal investment in infrastructure and its relatively low regulatory obligations.
In Zimbabwe, where telecommunications companies have invested heavily in expanding network connectivity, experts warn that Starlink's entry could destabilize the local market.
Tinashe Ruswa, a Zimbabwean telecommunications analyst, expressed concern about the competitive disparity between Starlink and local operators, which are burdened by the costs of building and maintaining infrastructure. "The arrival of Starlink means we're competing with a company that can sidestep the substantial infrastructure costs that we face," Ruswa said. "Local operators have not only invested in infrastructure but also in people, employing thousands in installation, maintenance, and customer service roles that are crucial to our economy."
Temidayo Oniosun, CEO of Space in Africa, a media and analytics company focusing on the African space and satellite industry, echoed similar concerns. Speaking to African Business Magazine, Oniosun stated, "We have a foreign company coming in, doing the bare minimum, and taking market share from companies that have invested heavily in the continent and are providing jobs for thousands of people." He called on regulators to ensure that African-owned businesses and jobs are protected in the face of such external competition.
In Zambia, local telecom companies such as Zamtel and Airtel Zambia have also raised alarms over Starlink's potential impact on the local industry. Charles Mwansa, a network engineer in Lusaka, warned that the lack of a robust regulatory framework could undermine the viability of Zambia's telecommunications sector. "Local companies have invested significantly in laying fibre, establishing mobile towers, and training local staff. Allowing a company like Starlink to operate without similar obligations could destabilize the industry," he said.
Advocates for fair competition are also questioning the value Starlink brings to the local economy. Steve Song, an internet access advocate at the Mozilla Foundation, criticized satellite providers for what he described as an "economically lopsided" model, where they extract value without investing in local economies. "Starlink's reluctance to invest in ground stations in many African nations exemplifies a value-extraction model that doesn't address the structural needs of local economies," Song explained.
In Kenya, Safaricom, the country's largest mobile network operator, has expressed concerns about the risks posed by satellite internet services to national security and local network quality. In a formal letter to the Communications Authority of Kenya (CA), Safaricom noted that Starlink's satellite services span multiple territorial borders and could lead to illegal service provision and interference within Kenya's borders. The company has recommended that satellite operators work in partnership with local licensees, rather than holding independent operating licenses, to better safeguard local interests.
Local industry leaders across the region agree that while Starlink has the potential to extend internet access to remote areas, fair competition requires that satellite providers adhere to the same regulatory and infrastructure obligations as traditional telecom companies.
James Ndongwe, a Zimbabwean economist, acknowledged the benefits of satellite internet but cautioned that the long-term impact on local economies must be carefully considered. "Starlink can play an important role in boosting connectivity in remote areas," Ndongwe said. "But at what cost to local economies? If they don't contribute to local infrastructure, taxes, or employment, we need to think carefully about the long-term effects on our industry."
As Starlink continues its expansion across Africa, calls for regulatory reforms are expected to intensify. Experts and stakeholders argue that the goal is not to block progress in satellite internet but to ensure that the benefits are shared equitably.
"Digital inclusion should be for everyone," Mwansa added, "and that means setting up systems where international players contribute as much to our growth as they stand to gain from it."
Source - newsday
