Uganda has become the latest country to grant an operating licence to Starlink after years of regulatory standoff, at a time when telecommunications operators across Africa are beginning to raise concerns about the Elon Musk-owned firm’s operations on the continent.

 

President Yoweri Museveni last week presided over the license agreement between Starlink and the Uganda Communications Commission, effectively paving way for the rollout of Starlink’s satellite internet services in the country.

This comes as a new report that polled telecommunication operators and experts across the continent reveals jitters of unfair competition, revenue loss and surrender of data sovereignty resulting from Starlink’s mass rollout on the continent.

Museveni said Starlink has agreed to comply with Uganda’s laws and regulatory requirements, an issue that had long kept Kampala, and neighboring Tanzania, from granting a license to the American operator even as other countries in the region rolled out red carpets to it.“Our interest is security, revenue assurance, and proper accountability within the telecommunications sector so that we know who is operating and who the customers are,” said President Museveni.

In Tanzania, Starlink and the regulator are yet to agree on three key issues which are keeping it from getting an operating license in the country. The two are yet to agree on data protection compliance, spectrum rights and some undisclosed local regulatory prerequisites.

Now, telecom operators and experts across the continent are urging a go-slow, even a rollback, in licensing Starlink, citing unfair competition, affordability, and data sovereignty concerns.

A report looking into the State of Satellite Internet in Africa, published by the Africa CEO Forum and Askya Investment Parters, shows that while Starlink has rapidly expanded its forays across the continent, its operations may be to the detriment of both internet consumers and service providers.“Africa’s connectivity gap is primarily driven by affordability, not coverage. Hence, satellite connectivity will not suffice to close Africa’s digital divide,” argues the report, which was based on interviews with telecom operators and experts across the continent.

It argues that while Starlink has rapidly expanded in Africa, it does not operate and is not regulated like other local telecom providers, which have to comply with multiple rules and pay taxes on revenues generated in the country.

Additionally, since it uses extra-terrestrial low-earth observation satellites to offer internet directly to end-consumers, operators say Starlink incurs significantly lower costs to access the same customers, giving it an unfair competitive advantage in the market.“Starlink’s low pricing of 50GB for $9 in Kenya disrupts market pricing and forces incumbents to revise offers,” a telecom executive in Kenya said.

Kenya is one of the markets where Starlink’s entry triggered price wars and resistance by leading telecommunication operators. Within a year of its entry, top telco Safaricom wrote to the regulator requesting revocation of its license that allowed it to sell directly to end consumers.

Across the continent, operators now disclose similar struggles with Starlink’s entry into their countries, and experts are now urging regulators to reconsider how to regulate Starlink and other satellite internet providers.“Licensing frameworks must be updated to recognise direct-to-consumer LEOs as offshore telecommunication operators, ensuring a level playing field and clarity on obligations, performance expectations and accountability,” urges the report.

The experts also urged that tax systems in Africa should capture income generated by multinational internet providers without a strong local presence and for regulators to involve players like Starlink in the contribution to universal service funds to ensure fairness.

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