Are African governments shooting themselves in the foot with Starlink?
Navigating security concerns, fostering innovation, and creating win-win partnerships.
🌟Good morning, entrepreneurs & tech enthusiasts!
Imagine paying the most on the planet for internet that's, well, let's just say "meh." That's the reality for folks in Zimbabwe, where coughing up a whopping $43.75 U.S. dollars for a measly gigabyte is the norm. Seriously, for that price, you'd expect the internet to be smoother than silk and faster than a cheetah, but nope! It's just... there. And guess what? This sky-high price tag isn't unique to Zimbabwe. Across Sub-Saharan Africa, the average cost for a measly gigabyte sits at a cool $3.31, which is enough to make anyone say "Ouch!”
But hey, there was a glimmer of hope! Starlink, the new internet service from the real-life Tony Stark, promised affordability and reliability. People were hyped, ready to ditch the overpriced, sluggish connection and jump ship. But then, bam, some African governments threw a wet blanket on the party, saying, "We’ll arrest you if found using Starlink!" Talk about a buzzkill, right?
What is Starlink?
Now, for those who might be new to the game, Starlink is a giant network of satellites in space, beaming internet down to folks on Earth. They're way closer than the usual satellites, orbiting at just 563 km (or 350 miles for our American friends) - that's 60 times closer than the traditional satellites! And guess what? Starlink is already lighting up 70 countries around the world, 7 of them in Africa with 8 more African nations joining the party in the coming months. So, yeah, the future is looking bright... well, you’d think.
The government's perspective
Starlink's arrival in Africa is exciting for millions, but some governments are hesitant. Botswana, Ghana, South Africa, and Zimbabwe express security concerns, fearing a foreign internet provider might compromise national security. However, the real concern might be Starlink's potential to undermine the government's ability to control information, something often exercised during elections and protests. While censorship concerns are valid, I want to focus on the missed economic opportunities by shutting the door on Starlink.
What’s wrong with the narrative?
If indeed security were a real concern Starlink would not be the first service African governments choose to shun. We should start with Google, Amazon, Netflix, Apple, etc. These are some of the biggest American data companies to date and African governments aren’t making any backlash against them, let alone African governments have never sued any of these big tech companies even in cases where you’d think they would such as alleged child labor in Congo cobalt mines or data protection cases in line with AfCFTA.
Regulation of big tech in Africa is lackadaisical. Long story short, concerning Starlink, African governments are fearing a loss of power. When the Internet came to be, most, if not all fixed telephone companies pivoted to be Internet Service Providers (ISPs) utilizing the telephone infrastructure for ADSL and later on investing in fiber. The problem is most of these companies are state-owned and the private ones would rather lobby governments to deny Starlink on our borders. The trouble with existing African telecom providers is that 1. They’re not known for innovation 2. They have terrible services and 3. Are expensive.
The entrance of Starlink is seen as a threat to these long-time monopolies who offer below-average services. They know they cannot compete so they’d rather stifle and frustrate a new entrant. Innovate or die is a better motto but in this case, it seems to be “Don’t come here”
The Real Motive
The truth about Starlink entering the African market is that it threatens the local telecom monopolies on all important fronts where the internet is concerned with the end user, affordability, and reliability. Any government that knows has ailing telecoms infrastructure will work around the clock to shut the door to Starlink and for understandable reasons. The threat posed by Starlink, if real has the potential to halve the revenue gains that are currently enjoyed by the big monopolies. Decreased revenues and less demand for internet services from local telcos will mean less taxes for the government and also job losses. Countries such as South Africa and Zimbabwe already have staggering unemployment rates and telecoms companies employ a lot of citizens. No government wants to find out the consequences.
The consequences
If there is one thing that history has taught us it’s that you can’t stop innovation. You can’t get in the way of a truly revolutionary technology, people will always find ways to get their hands on the technology. In the early 1900s, we learn the same with automobiles replacing horse-drawn carriages. There was a lot of resistance but the battle was a lost cause. Today we have an automobile industry with a global GDP of 2.9 trillion U.S dollars. Another innovation met with so much resistance is Bitcoin, but despite all trials, Bitcoin is surging through, today valued at $69,000 U.S dollars. Some governments are even secretly buying Bitcoin because they’re seeing the gains and what they’re missing out on.
The same is going to happen with Starlink in Africa. People will find ways to use Starlink, legal or otherwise. Modern economies rely on connectivity to operate in full stead and reliable internet is at the core of this operation. Here are some reasons that should make governments think long and hard about Starlink.
Reduced Internet access: Many African regions lack reliable Internet infrastructure. Starlink offers broadband internet access to remote and underserved areas. Shutting it down would hinder economic activities that rely on the Internet, like e-commerce, online education, and communication with international clients.
Stifled innovation and entrepreneurship: Reliable internet fosters innovation and the growth of tech startups. Without Starlink, businesses may struggle to compete globally and access essential online tools.
Limited access to information and financial services: Starlink can improve access to online information and financial services in remote areas. Shutting it down would limit financial inclusion and access to important knowledge resources.
Higher communication costs: In some cases, Starlink might be a more affordable option than traditional satellite internet. Shutting it down could force businesses and individuals to rely on existing, potentially more expensive options.
Negative impact on specific sectors: Industries like agriculture, mining, and healthcare can benefit from Starlink's connectivity for remote monitoring and data collection. Shutting it down could disrupt these sectors. And yet we have a government taking a mining company to court for being found using Starlink.
I am not at all saying we should be allowed to use Starlink and to hell with our telecoms companies. The truth is, the regular African will not afford the Starlink kit anyway, businesses and those doing bandwidth-intensive jobs will make the sacrifice to get Starlink, out of sheer need.
In addition, the concerns being aired by governments are sound.
Security: In the modern day, the internet is a big thing and sovereign states will want to have control over their internet and not rely on foreign providers who can shut them down if they so wish. This once happened in 2012 when the NSA cut Syria off the internet. However, if we were to use this narrative, we might say the same can still happen with the undersea fiber cables that we use today.
Regulation: Starlink is a relatively new technology, and regulations are not fully established. The truth is, in Africa, the technology may not exactly be fully understood to even think of useful regulations.
Competition: Existing telecoms companies are worried they can’t compete with Starlink and they’re going to try and protect their market share. These telecom companies are not exactly state-of-the-art. Telecom infrastructure investments are ailing and as such poor services as a result. These telcos will do anything in their power to lobby against the entrance of Starlink in Africa.
Revenue sharing: One of the conditions that Starlink has to meet in South Africa is to shed 30% minimum equity to be held by persons from historically disadvantaged groups, which includes black people, women, youth, and people with disabilities. Understandably this is a strategy for the local economy to benefit as well and not just have money leave the country with no gains locally.
The Way out
You know, when Starlink launched in 2019, the mission and objective were straight to the point and still is to "provide affordable and reliable internet to the remote and underserved parts of the world". The shock most people didn't anticipate 5 years ago was that a 1/3 of Africa is a remote and underserved part of the world and we'll all be kicking and screaming to get our hands on Starlink and governments saying "Nope, we'll arrest you".
The unfortunate reality is that Starlink will eat MTN, Econet, Vodacom, Telkom, Telone, and Safaricom's lunch. Nobody should ever want that. But, innovate or die. Telecom companies will not lobby governments forever and even if they did they will not win in the long term. What instead telecom companies and governments can do is to partner with Starlink.
1. Utilizing Starlink's backhaul services
Starlink's network can act as a backhaul for telecom companies, providing high-bandwidth internet connectivity to remote areas where traditional infrastructure like fiber optic cables is not feasible. This can extend the reach of a telco's network and cater to underserved populations.
2. Leveraging Starlink's direct-to-cell technology
Late last year, Starlink signed an agreement with T-Mobile for their latest innovation, direct-to-cell. This innovative technology allows Starlink satellites to directly communicate with mobile phones, bypassing traditional ground infrastructure. Partnering with Starlink can enable telcos to offer improved mobile connectivity in remote areas, potentially starting with SMS and progressing to voice and data services. The likes of Econet, MTN, and Safaricom should be looking into this.
3. Exploring joint ventures for service offerings
Telcos and Starlink can collaborate to develop and offer unique bundled services. This could involve combining Starlink's satellite internet with a telco's existing mobile or broadband plans, creating attractive packages for customers in underserved areas. The reality is, that the regular customer does not care about who they are paying their dollars to, all they care about is getting a reliable service.
4. Partnering for enterprise solutions
Starlink's reliable and low-latency connectivity can be valuable for various industries. Telcos can partner with Starlink to offer customized solutions to enterprises operating in remote locations, catering to sectors like mining, agriculture, and healthcare that require data transmission and real-time communication.
5. Collaboration on R&D
Telcos and Starlink can collaborate on research and development initiatives to explore further applications of satellite-based connectivity and integrate Starlink's technology with existing telecom infrastructure for seamless service delivery.
Final thoughts
The farmer from the 1900s thought his horses would be the mode of transport for the entire existence of mankind perhaps. The early 2000s Bitcoin critic today wishes they had jumped in the early days but they stayed on the fence for too long and they missed the gravy train.
With or without the African government’s official approval people will find ways to use Starlink. Governments do not have the manpower nor the financial muscle to hunt down everyone who will purchase and install the satellite kit.
There are far more long-term economic gains in having Starlink in our borders than short-term threats.
>>> Google Jr