A new report warns that Africa risks losing billions in revenue as satellite internet operators such as Starlink expand across the continent, while fragmented and inconsistent licensing leaves governments with weak bargaining power. The concern is not connectivity itself, which satellites can genuinely extend, but who captures the value.
The revenue-leakage problem
Terrestrial operators including MTN, Airtel Africa and Vodacom pay heavy spectrum and licence fees in the markets they serve; MTN alone paid $273.6 million for its 5G spectrum licence in Nigeria. By contrast, subscription payments to satellite providers flow largely to offshore companies, with limited local reinvestment or tax contribution. The report cautions that as more digital traffic and economic value shift to operators outside national regulatory reach, governments face growing revenue leakage.
A patchwork of responses
African states have reacted very differently. Senegal formally recognised Starlink as an internet service provider in early 2026 after the company had entered ahead of authorisation. Namibia rejected its licence application, and South Africa issued cease-and-desist orders against providers facilitating access, yet grey-market use reportedly continues in both. The African Telecommunications Union has warned that this fragmented, country-by-country approach weakens the continent’s collective leverage over global operators whose infrastructure sits beyond any single jurisdiction.
The proposed middle path
Rather than banning satellite or letting it compete unchecked for premium retail customers, the report recommends a hybrid model: positioning satellite operators primarily as wholesale providers that strengthen coverage and resilience in underserved areas, working alongside terrestrial networks instead of cannibalising them.
The tension is real and unlikely to resolve soon. Satellite connectivity can reach communities that towers never will, which is a genuine public good in a region where mobile internet use remains far below half the population. But connectivity without a coherent regulatory and tax framework risks trading one dependency for another. The strategic question for African governments is whether they can coordinate, rather than compete with one another, to set the terms before the terms are set for them.
