Starlink faces affordability, adoption challenges locally

South Africa’s Starlink debate raises questions on affordability, adoption, and opportunities for local WISPsby Jens Langenhorst, specialist RF engineer and vice chair of WAPA

South African media has been flooded with coverage of Starlink for months. Every regulatory update, ministerial statement, or parliamentary objection makes headlines. Amid this intense attention, one question stands out: why is Starlink drawing so much focus?

The regulatory hurdles facing Elon Musk’s satellite service are not unique. Major global technology companies have long navigated South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) framework when entering the market.

According to Paul Colmer, Executive Member at WAPA, what sets Starlink apart is its requirement for a radio license. Section 9(2)(b) of the Electronic Communications Act mandates 30% equity ownership by historically disadvantaged South Africans, yet SpaceX’s global policy forbids local equity dilution. This conflict has played out in government gazettes, ministerial directives, and parliamentary committee objections throughout 2025.

In December 2025, Communications Minister Solly Malatsi issued a directive instructing ICASA to align its regulations with the ICT Sector Code, which allows Equity Equivalent Investment Programmes (EEIPs) as an alternative to direct ownership. SpaceX has pledged R2.5 billion in local investment, including R500 million to connect 5,000 schools with free internet and equipment. Regulatory clarity now rests with ICASA, and ministerial pressure alone cannot resolve the process.

Yet the media attention raises another question: why the focus on Starlink when OneWeb is already providing LEO services in South Africa through partners like Paratus and Q-KON Africa, and Amazon’s Project Kuiper is preparing to launch? Public interest is overwhelmingly concentrated on Starlink, overshadowing the fundamental issue: who actually needs this service?

Affordability matters

Starlink promises broadband anywhere with fiber-like speeds. But affordability is relative. Pricing in Eswatini and Lesotho indicates monthly subscriptions of R900–R950, plus a R3,800 one-time equipment cost for the Starlink Mini kit. In comparison, FTTH services in South Africa typically cost R950 per month for uncapped 100Mbps, placing Starlink at the premium end of the market.

ICASA’s 2023 report notes 2.7 million fixed broadband subscriptions, 2.47 million of which are FTTH. Households able to pay R950 per month fall largely within LSM7–10, representing 1.3–2.5 million homes. Many of these households already have FTTH or fixed wireless services. Jens Langenhorst points out that the addressable market for Starlink in South Africa is thus limited to incremental adoption, backup use, or mobile connectivity during travel, rather than representing a transformative opportunity.

Lower-income households are being served by innovative WISPs. Fibertime has connected over 250,000 homes with uncapped 100Mbps at R5 per day, targeting 2 million homes by 2028. TooMuchWifi serves over 70 communities in the Western Cape with uncapped internet for over 1 million users at the same daily rate. This starkly contrasts with Starlink’s premium pricing.

Opportunity in Remote Infrastructure

Starlink’s strength lies in areas where traditional infrastructure is not viable: remote farms, forestry stations, villages, and schools. Local WISPs have a major role here. While Starlink has committed to providing free connectivity for 5,000 schools, it is a satellite service, not a full infrastructure provider.

This opens opportunities for WISPs to build networks around Starlink deployments. They can handle last-mile distribution, equipment maintenance, troubleshooting, and integration with local systems. As Langenhorst notes, fixed wireless and fiber solutions have historically failed in these regions because they deliver connectivity only to a single point, not throughout entire campuses or farms. Starlink will face similar challenges without local partners bridging the gap from terminal to end user.

Market Context and Competition

Globally, Starlink has over 7 million subscribers, making South Africa an attractive market even with limited uptake. Demand was evident when over 12,000 “illegal” terminals were sold between 2023 and early 2024, despite regulatory uncertainty.

Starlink will serve a purpose, particularly in areas lacking robust broadband coverage. But South Africa is less critical strategically, and competitors like Amazon’s Project Kuiper and China’s Thousand Sails constellation will be ready to enter as regulatory processes conclude.

LEO satellite services will eventually cover significant parts of South Africa, though universal access remains unlikely. Jens Langenhorst emphasizes that success will depend on strategies tailored to income levels and collaboration with local infrastructure providers to turn satellite connectivity into meaningful internet access for schools, farms, and rural communities.

Axelspace has signed MoU with Jethi to develop satellite data platform in Ethiopia

Axelspace Corporation, a leading developer and operator of microsatellites dedicated to realising its vision of “Space within Your Reach,” has signed a MoU with Ethiopian technology company Jethi Software Development PLC to collaborate on using satellite-based Earth observation data to address social and development challenges

The partnership aims to build win-win relationships with African partners and develop a local platform for utilising satellite data in Ethiopia.

The MoU was signed by Naol Debele, CEO of Jethi, and Yuya Nakamura, president and CEO of Axelspace, during a ceremony held in Ethiopia on January 13. The event was attended by representatives from the Space Science and Geospatial Institute of Ethiopia, members of Jethi’s board, and invited guests in an official capacity.

Axelspace has identified the expansion of EO data utilisation in emerging markets, including Africa, as a key medium- to long-term strategic priority. Through this collaboration, the company seeks to support locally driven, data-informed solutions.

Under the agreement, Axelspace will provide EO data and technical expertise for applications across several priority sectors, including agriculture, environmental and forest conservation, disaster risk management, climate resilience, urban planning, and infrastructure development. Jethi will lead efforts to establish a local framework for EO data use, coordinating with stakeholders to integrate satellite data with local information and institutional needs.

The partnership is designed to identify priority challenges, develop scalable solutions combining EO data with local information, and foster a sustainable ecosystem for satellite data utilization in Ethiopia.

Axelspace is also participating in the Emerging Countries Working Group, launched in 2024 by Cross U, a general incorporated association, which promotes co-creation of space-related business between Japan and African countries.

“With the economic development of emerging countries, including those in Africa, the demand for satellite data utilization is expected to increase significantly,” said Yuya Nakamura, President and CEO of Axelspace. “We will work to build win-win relationships that create new value with local public and private sector partners, leveraging Japan’s advanced technological capabilities and expertise to contribute to the long-term development of a platform for satellite data utilization.”

EBRD backs Tunisie telecom with major financing to accelerate 5G rollout. (Image source: EBRD)

The European Bank for Reconstruction and Development (EBRD) has entered into a strategic partnership with Tunisie Telecom, Tunisia’s national telecommunications operator, to strengthen the country’s digital infrastructure and support the company’s long-term transformation

Under the agreement, the EBRD will provide a development-linked loan of up to €190 million (approx. US$205mn), to be released in four tranches, starting with an initial committed tranche of €50 million (approx. US$54mn). The financing will support a multi-year investment programme aimed at upgrading Tunisie Telecom’s mobile access network from 4G to 5G, expanding its fibre footprint, and connecting up to 200,000 households through fibre-to-the-home services. The programme also includes modernisation of the operator’s backbone and core networks, alongside targeted investments in energy efficiency and energy generation.

The financing package will further enhance Tunisia’s international connectivity by supporting Tunisie Telecom’s connection to the MEDUSA submarine cable, a Mediterranean subsea network backed by the European Union (EU) and led by Spanish firm AFR-IX. Spanning more than 8,000 km, MEDUSA links nearly 13 countries across Europe, North Africa and the Middle East.

The EBRD loan is supported by an €11 million (approx. US$12mn) EU grant provided through the Neighbourhood Investment Platform. This includes an investment grant for core network upgrades and cybersecurity improvements, as well as a technical assistance grant to deliver a comprehensive transformation programme for the national operator.

That transformation programme is designed to address key areas of corporate development, including workforce skills, sustainability, energy efficiency, digitalisation, cybersecurity and strategic reform. It is expected to enhance Tunisie Telecom’s operational efficiency, resilience and competitive positioning.

Notably, this marks the first time since 2012 that the EBRD has extended financing to Tunisia’s public sector without a sovereign guarantee. The loan is also structured as a development-linked facility, meaning interest rates will be adjusted based on progress against agreed transformation milestones, including sustainability targets and broader state-owned enterprise reform objectives.

The project reflects the EBRD’s integrated approach to Tunisia’s digital sector and builds on its collaboration with the Tunisian government, the Ministry of Communication Technologies and the national telecom regulator to advance digital services, sector competitiveness and innovation.

EBRD president Odile Renaud-Basso said, “We are very proud to support a key sector for Tunisia at a time when digitalisation and connectivity are of very high and ever-increasing importance. Partnering with the Tunisian government and the EU, we are contributing to the modernisation of Tunisie Telecom and the digital transformation of the country. This upgrade will also enhance connectivity to Europe and ultimately help position the country as a key digital hub across the Mediterranean region and in Africa.”

“We are pleased to partner with the EBRD in a move that underscores international confidence in Tunisia’s economy and supports our vision for advancing the telecommunications sector. Through modernised digital infrastructure, improved international connectivity and new technologies, such as 5G and fibre, we aim to enhance services in education, healthcare and smart cities, bridging the digital divide and driving Tunisia’s digital economy forward," added Lassaad Ben Dhiab, CEO of Tunisie Telecom.  

EU ambassador to Tunisia Giuseppe Perrone commented, “Today we mark a landmark investment in Tunisia’s digital future. Through our joint EU-EBRD support for Tunisie Telecom, we are accompanying the company’s modernisation plans by reinforcing its critical infrastructure in line with the National Digital Strategy, accelerating 5G rollout and connecting Tunisia to the MEDUSA submarine cable – a Global Gateway flagship. This is more than a project: it is a concrete step toward fast, secure and future-proof connectivity across the Mediterranean, strengthening the EU–Tunisia partnership launched in 2023 for the benefit of our citizens.”

The EBRD financing is backed by a first-loss guarantee from the European Fund for Sustainable Development Plus (EFSD+), delivered through its Digital Transformation Platform, an EU flagship initiative supporting digital inclusion and sustainable growth in partner countries. The guarantee aligns the project with the EU Global Gateway strategy, supporting high-speed broadband deployment, digital solutions and inclusive economic development in Tunisia and the wider region.

Digifarm transforms Kenyan agriculture. (Image source: Safaricom)

Digifarm, a subsidiary of Safaricom, is leveraging technology to empower farmers in Kenya, drawing inspiration from the success of M-PESA in promoting financial inclusion at the grassroots level

“Today, everybody can access mobile money on their phone. That is the vision for Digifarm. 25 years from now, I want you to look back and look at how technology will have transformed agriculture in this country. 80% of our food is from small-holder farmers, so we must enable our farmers. And technology is the way to do it,” said Seema Gohil, Digifarm’s director.

The platform is accessible to all farmers across Kenya, regardless of their location or farm size. Digifarm delivers tailored digital solutions and services directly to farmers’ phones through two main arms: Kilimo and Soko.

Kilimo, the agriculture-focused arm, integrates digital technology, artificial intelligence, partnerships, and farmer services to meet the full spectrum of smallholder needs. Through Kilimo, farmers gain access to digital extension services, agricultural inputs, financial services, and training programmes designed to enhance their skills and productivity.

Soko, the marketplace arm, connects farmers directly with buyers, cooperatives, and processors across multiple value chains. The platform also provides market-oriented services, such as digital tracking of sales and inventory, maintaining sales records to qualify for future credit, and enabling instant payments via M-PESA.

Having spent the past two decades driving financial inclusion through M-PESA in Kenya and beyond, Safaricom now aims to extend its impact into agriculture through Digifarm.

“The entire ecosystem of farmers in this country needs support. Because if farming is nearly half of the people in the country, from an employment perspective, and nearly a third of the GDP of the country, then making sure that farmers are thriving is critical to our success as Safaricom and critical to the economic success of the country,” explained Michael Mutiga, chief business development and strategy officer at Safaricom.

For farmers, Digifarm is designed to be a simple and trusted digital companion. For banks, agribusinesses, and other stakeholders, it provides a platform with data, scale, and direct access to millions of farmers. For Safaricom, Digifarm represents a strategic component in the telco’s mission to become Africa’s leading purpose-led technology company by 2030.