MTN Eyes Satellite Internet Partnerships to Expand Rural Connectivity

South Africa’s largest mobile operator, MTN Group, is exploring partnerships with low-Earth-orbit (LEO) satellite providers to extend internet access to underserved rural and remote areas. Group CEO Ralph Mupita announced the initiative on Monday, highlighting the growing role of satellite internet in bridging connectivity gaps across Africa.

The Need for Satellite Internet in Africa

LEO satellites, such as those deployed by Elon Musk’s Starlink and Amazon’s Project Kuiper, offer high-speed internet in areas where traditional telecom infrastructure is expensive or impractical.

• Advantages: LEO satellites can provide reliable internet access in remote locations where fibre and mobile broadband are challenging to deploy.
• Demand: The technology is gaining traction in Africa, where connectivity remains limited for millions.

MTN’s Approach to Partnerships

Mupita revealed that MTN is conducting proof-of-concept trials with various LEO satellite operators to assess potential collaborations.

• Reseller Opportunities: MTN is considering reselling LEO satellite services through its enterprise division in select markets.
• Competitor Activity: Rivals like Cell C and Vodacom are also exploring partnerships. Notably, Vodacom has already partnered with Amazon’s Project Kuiper.

Regulatory Challenges in South Africa

While LEO operators like Starlink are expanding across Africa, they face hurdles in South Africa:

• Regulatory Uncertainty: The Independent Communications Authority of South Africa (ICASA) is developing a licensing framework for satellite providers.
• Level Playing Field: Mupita emphasized the need for equal regulatory treatment for LEO satellite and terrestrial operators, including compliance with data privacy, localization, and spectrum access rules.
  • “Our ask is that there just be a level playing ground,” Mupita said.

The Competitive Landscape

• MTN’s Perspective: As fixed and wireless operators face growing competition from satellite providers, MTN is preparing to “future-proof” its business.
• Regulatory Resistance: Starlink has encountered resistance in several African countries, including South Africa, often from state-owned telecom firms.

Outlook

MTN’s foray into satellite internet reflects a broader industry trend toward hybrid connectivity solutions, combining terrestrial and satellite technologies to ensure uninterrupted service. With regulatory frameworks evolving and competition intensifying, partnerships with LEO operators could be pivotal in reshaping Africa’s connectivity landscape.