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Starlink puts halt on new customers in Africa

Nov 5, 2024, 9:32am EST
africa
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The News

LAGOS — Elon Musk’s internet service provider Starlink is halting new sign-ups in Africa, citing a demand surge in the continent’s biggest cities.

“Starlink is working to increase Internet capacity in dense urban areas in Africa as fast as possible,” Musk wrote on X, though adding that the company retained “significant capacity outside of city centers.”

The pause means Starlink kits will be temporarily unavailable for purchase. That appears to be the case in Kenya’s capital Nairobi and other counties, according to local media.

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Since launching in Nigeria last year, Starlink’s Africa presence has grown to 15 countries. It added Botswana and Ghana in August.

In June, Kenya’s telecoms regulator ranked Starlink as the 10th largest internet service provider with 0.5% market share, or about 8,000 subscribers. Starlink has more than 23,000 users in Nigeria.

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Know More

Starlink’s Africa rollout has not been without resistance from local telecoms companies and concerned regulators.

Safaricom, one of Africa’s largest telecommunications providers, asked Kenyan officials in August to tighten licensing requirements for satellite-based internet providers. The company whose share of the market for internet service providers stands at 36% said Starlink should be required to partner with local mobile network operators.

Other kinds of challenges have been raised elsewhere. Cameroon banned the import of Starlink kits in April, accusing the company of operating without a license. Last month, Nigeria’s telecoms regulator restrained the company’s ability to raise prices without prior approval.

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Kenya’s regulators have allowed Starlink to operate freely, with President William Ruto lauding the company in September as being good for competition in the country.

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The View From South Africa

South Africa, the country where Musk was born, remains a major holdout for Starlink’s Africa ambitions, but President Cyril Ramaphosa appears keen to have Musk investing in the country. Ramaphosa praised the billionaire for being “so successful and you’re investing in a variety of countries, I want you to come home and invest here.”

Investment rules mandate 30% Black ownership of information and communication technology companies but a government minister recently suggested that Starlink could get an exemption.

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“Giving millions of South Africans access to broadband would therefore constitute one of the biggest empowerment programs the South African government has ever undertaken,” Communications and Digital Technology Minister Solly Malatsi said. The telecoms regulator published a document to review the licensing process for satellite services.

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