Ahead of Starlink launch in SA, MTN explores partners for satellite-internet service

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Damilohun Maya

Guest
Africa’s biggest telecoms service provider, MTN is exploring partnerships with low-Earth-orbit (LEO) satellite providers to provide internet to dwellers in rural and remote areas in South Africa. This was made known by MTN Group CEO, Ralph Mupita, today.

Mr Mupita told journalists in a media call that the motivation for the option is to keep customers and businesses connected at all times. “We are going to have to embrace satellite as an additional technology form”, he said.

He added that the company was carrying out proof of concepts with a number of LEO satellite operators for possible partnerships. “We are exploring several and some of them we’re happy to be resellers through our enterprise business to some of our customers in specific countries,” he added.

LEO satellites usually operate at altitudes of 300km to 2,000 km from the Earth’s surface and have the advantage of being cheaper and providing more efficient transmission than satellites at higher orbits. They provide high-speed internet in areas where terrestrial telecommunications infrastructure is difficult and expensive to deploy.

MTN South Africa is not alone in the LEO alternative search. South African rival, Cell C announced plans to do the same. Recall that Vodacom announced a partnership with Amazon’s Project Kuiper LEO satellite last year. However, the CEO insists the company is prepared for a profitable run.

“We are very aware of the challenges of having to compete as a fixed and wireless operator with LEO satellites over time, so we’re arranging ourselves to be able to sure proof our businesses in our key markets,” he said.

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Starlink, operated by billionaire Elon Musk, has over 500 thousand users globally. Last week, the internet company launched its services in the West African country of Chad. Starlink’s launch in Chad is coming two weeks after it launched in Zimbabwe. This makes it the fastest-growing internet service as it is now available in over 122 countries globally and in 18 African countries.

The internet company has also launched in Botswana, South Sudan and Ghana in the past two months.

Yet, Starlink has faced regulatory challenges in South Africa. The country is now one of the few countries in the world that doesn’t have an estimated in-service date. It was reported in April that Starlink is not going to work in South Africa because the company didn’t want to share ownership with locals as per the government’s requirements.

Starlink refused to comply with the country’s BEE (Black Economic Empowerment) requirements to gift 30% ownership to local historically disadvantaged people. Also, the Independent Communications Authority of South Africa (Icasa) and the Minister of Communications have failed to issue new communications licences in about 13 years.

Icasa says it has not received any application for a licence from Starlink, nor has the company approached the Department of Communication and Digital Technologies (DCDT), according to a report. “It is of utmost importance to note that all licence applications have to go through Icasa and not DCDT,” they said.

List of African countries where Starlink is available and soon to be launched


Recall that two months ago, South African President Cyril Ramaphosa held talks with Starlink founder, Elon Musk over potential investments.

“I have had discussions with him and have said, Elon, you become so successful and you’re investing in a variety of countries, I want you to come home and invest here,” Ramaphosa told reporters in Pretoria. “He and I are going to have a further discussion.”

Subsequently, South African regulator ICASA announced that it is currently working on a regulatory and licensing framework for satellite internet providers to play as operators.

During the media session, MTN CEO, Ralph Mupita expressed the need for a level playing ground. “LEO operators should be treated the same as terrestrial operators such as ourselves, subjected to the same regulatory requirements whether it’s around data privacy, data transport, localization and access to spectrum,” Mupita said.
 
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