Satellite Operators Risk Eroding $30 Billion Telecom Sector in Africa

A new report by the Africa CEO Forum and Askya Investment Partners warns that expanding satellite internet services, particularly from offshore operators like Starlink, could cost African economies billions in lost revenue, jobs, and infrastructure investment.

The imbalance stems largely from regulatory differences: while traditional telecom companies face substantial licensing fees, infrastructure costs, and tax obligations, satellite providers often enter markets with lighter requirements. For example, in Senegal, local telecom operators paid over $50 million for 5G licenses, while Starlink obtained a similar license for just $150,000.

Key Findings:

• Satellite operators are capturing high-value customers traditionally served by local companies
• As of early 2026, Starlink had secured authorization in at least 25 African countries
• Nigeria and Zimbabwe represent key growth markets with over 66,000 and 67,000 users respectively (Q4 2025)
• The telecom sector contributes over $30 billion annually to African economies (9.8% of total public revenue)
• MTN alone paid $273.6 million for its Nigerian 5G license

Implications for Africa:

As satellite operators gain market share, traditional telecom companies may reduce infrastructure investments—particularly in rural areas where returns are already limited. This could widen the digital divide and hinder economic development.

Governments also face revenue leakage as more digital traffic flows to offshore entities with minimal local reinvestment or tax contributions. Several countries have taken different approaches:

• Senegal: Formally recognized Starlink after initial unauthorized entry
• Namibia: Rejected Starlink’s license application
• South Africa: Issued cease-and-desist orders against facilitators of the service

The report recommends a hybrid connectivity model where satellite operators focus on providing wholesale coverage in underserved areas rather than directly competing for premium retail customers. This approach could leverage their strengths while preserving local investment and job creation.