Live Markets, Charts & Financial News

Starlink stirs rivalry with planned Uganda, Tanzania, Burundi entry

1

Starlink, the internet services company owned by billionaire Elon Musk, aims to enter the markets of Uganda, Tanzania, Burundi and Zimbabwe by the end of this year, hoping to strengthen its presence in the region and spark competition with established telecom companies.

In a schematic posted on its website, the company, a division of Elon Musk’s SpaceX, says its entry into Zimbabwe will take place before the end of September, while the service will be rolled out in the remaining designated markets during the fourth quarter of the year.

If the plan is successful, it will increase to 11 the number of countries in the region using the Starlink internet service after its launch in Kenya, South Sudan, Rwanda, Zambia, Malawi, Mozambique and Madagascar.

The multinational also plans to enter the Democratic Republic of Congo next year, along with Mauritius, Comoros and Seychelles — plans that will increase competition for established telecoms companies with footprints in the markets. Leading telecoms companies in Starlink’s target markets include Safaricom, MTN, Airtel, Vodacom, Lunitel and Econonet.

According to a side notice on the website, the service’s availability in the planned countries is subject to regulatory approval, with the company saying that requests will be fulfilled on a first-come, first-served basis.

Starlink says the launch date in the rest of the region, including Ethiopia, Djibouti, Eritrea and Sudan, is still unknown, meaning there are no plans yet to venture into the four markets.

Although the prices of the stabilization kit in the target countries have not yet been determined, they are expected to range within specific costs in active markets, which average $341 (43,977.17 shillings), with the highest price in Kenya at $353 (45,525.11 shillings), while the lowest price in Zambia is $307 (39,592.66 shillings).

The hardware kit, which consists of the Starlink dish, mounting bracket, cables, and power supply, represents the largest cost of installation, with other fees including shipping and handling fees as well as a monthly service fee.

Other optional accessories include an Ethernet adapter, a long wall bracket, a conduit adapter, and a 45-meter cable designed to replace the original cable between the dish and the power supply when additional length is needed.

In April this year, a BBC report revealed that Starlink had suspended its services in Zimbabwe, the Democratic Republic of the Congo, Botswana, and South Africa, due to its lack of operating licenses and other regulatory approvals.

Unlike traditional fiber optic networks, Starlink technology consists of a vast network of small satellites in low Earth orbit, flying at altitudes between 340 and 1,200 kilometers. Users on the ground access the internet via phased array user terminals, which are satellite dishes that align with passing satellites, allowing for continuous and stable connectivity.

This technology supports services that cannot be provided using traditional terrestrial solutions, allowing unmodified smartphones to connect to satellites in areas with coverage gaps.

Starlink’s main strength is its ability to provide high-speed internet with low latency, making it ideal for rural or remote areas where traditional internet services are limited or unreliable.

But on the downside, bad weather affects satellite internet availability, especially in extreme cases of heavy rain where snowfall or heavy cloud cover can disrupt the signal between the satellite dish and the satellite in orbit.

The company also failed to ensure the safety of personal information.

“While we strive to keep information secure, we cannot guarantee that our security measures will prevent every unauthorized attempt to access, use or disclose personal information,” reads a statement in the website’s legal section.

In Kenya, the multinational has already begun to upset local players in the industry, with the country’s leading telecoms company Safaricom writing to the communications regulator asking for a review of the policy on licensing satellite internet providers.

In its petition, Safaricom alleged that this would lead to illegal communications as well as harmful interference with mobile networks.

Comments are closed, but trackbacks and pingbacks are open.