"Starlink Seek Greater Market Share in Africa with “Game-Changing” Router-Free Service"

" Starlink Seek Greater Market Share in Africa with \"Game-Changing\" Router-Free Service \r\n\r\n Starlink\u2019s intention to offer a router-free service would be a \"wake-up call\" for Africa's telecom giants, according to one analyst, and could trigger a pricing war across Africa\u2019s telecom sector, forcing traditional giants to innovate or risk losing their market stronghold. \r\n\r\n Seth Onyango, bird story agency \r\n\r\nBillionaire Elon Musk\u2019s Starlink looks set to further disrupt Africa\u2019s internet market with a router-free offering.\r\n\r\nCutting out the need for expensive hardware would help Starlink undercut traditional monopolies like Safaricom and MTN and expand its market share in a region where high costs have long been a barrier to wider internet access.\r\n\r\nMartin Macharia, a Kenyan tech analyst, sees this development as a pivotal moment for Africa\u2019s internet landscape.\r\n\r\n\u201cStarlink\u2019s router-free option could be a game-changer in Africa. It removes one of the biggest cost barriers and could lead to widespread adoption of satellite internet. This will for sure upset incumbent providers,\u201d Macharia said.\r\n\r\n\u201cIt is not just about cheaper internet\u2014it\u2019s about breaking the stranglehold that local providers have on the market which is good because general offering improves.\u201d\r\n\r\nInnovation Village reported that the satellite provider\u2019s strategy will enable mobile phones to connect directly to satellites, bypassing needless expenditure on hardware.\r\n\r\nStarling submitted a filing outlining its plans to the US Federal Communications Commission (FCC) in May of this year.\r\n\r\nSuch a service removes one of the last remaining barriers to the widespread adoption of satellite internet in Africa, where high upfront hardware costs have kept many potential users on the sidelines.\r\n\r\n \r\n\r\nThe move comes as Safaricom, the leading telecommunications provider in Kenya, pushes for tighter regulations on Starlink, wary of the potential threat to its lucrative data bundle business.\r\n\r\nSafaricom has enjoyed near-monopoly status in Kenya, leveraging its extensive infrastructure and customer base to maintain a stronghold on the market.\r\n\r\nThe Vodacom-owned East African giant in June 2023 announced its intention to use AST SpaceMobile's satellite internet offering to improve its broadband services. Vodacom's majority owner, Vodafone and AST SpaceMobile have trialed space-based voice and data, announcing success with space-based 5G voice calling and data and download speeds of nearly 14 Mbps by September 2023.\r\n\r\nIn March, MTN Group, Africa\u2019s largest telco by subscriber base, announced a foray into direct-to-device (D2D) satellite services, after partnering with US-based satellite broadband provider Omnispace.\r\n\r\nIn a joint statement, the two said they were exploring using S-band (2-4GHz) frequencies for satellite services to expand MTN\u2019s portfolio of wireless services to its over 290 million customers in 19 countries.\r\n\r\nHowever, Starlink\u2019s aggressive push into the region with its cost-cutting strategy could erode the dominance of established telco's like MTN and Vodacom.\r\n\r\nThe impact of Starlink\u2019s move could be especially significant in rural and underserved areas where traditional ISPs have struggled.\r\n\r\nStarlink\u2019s technology, which doesn\u2019t rely on ground infrastructure, could offer a viable alternative to the patchy service many Africans currently experience.\r\n\r\n\u201cSafaricom and others need to wake up,\u201d Macharia added. \u201cStarlink\u2019s aggressive push could very well upend the current market dynamics.\u201d\r\n\r\nSafaricom\u2019s push for tighter regulation on Starlink is a clear indication of the fears within the industry that Musk\u2019s satellite service could destabilise the traditional telecom hierarchy that has existed for years.\r\n\r\nStarlink\u2019s planned approach, sidestepping the need for ground infrastructure, could provide a more reliable and affordable alternative to traditional ISPs, many of which have struggled with providing consistent service in remote locations.\r\n\r\nIts move could force incumbent ISPs like Safaricom and MTN to lower their prices and rethink their strategies to remain competitive.\r\n\r\nMacharia notes that the shift towards satellite-based internet could also lead to significant changes in how data is managed and utilised across the continent.\r\n\r\nWith Starlink\u2019s planned direct-to-satellite connections, there is potential for a new wave of digital services and applications that leverage this high-speed, low-latency internet.\r\n\r\nThis could drive innovation in sectors like fintech, e-commerce, and education, where connectivity has been a limiting factor.\r\n\r\nHowever, the success of Starlink\u2019s expansion into Africa is not guaranteed. While the router-free service may lower costs, the overall affordability of Starlink\u2019s service remains a concern.\r\n\r\nThe initial cost of the Starlink kit, even without the router, and the ongoing subscription fees may still be out of reach for many low-income households.\r\n\r\nThis raises questions about whether Starlink can truly democratise internet access in Africa or if it will remain a service for the more affluent.\r\n\r\nAdditionally, regulatory hurdles could pose significant challenges.\r\n\r\nAfrican governments have a history of imposing strict controls on new technologies, particularly those that threaten existing monopolies.\r\n\r\nStarlink will likely face scrutiny and possibly resistance from both regulators and traditional ISPs looking to protect their market share.\r\n\r\nHow these dynamics play out will be crucial in determining whether Starlink can establish a foothold in Africa\u2019s competitive telecom market.\r\n\r\nThe coming months will be critical as Starlink\u2019s plans for Africa become clearer. Whether the company can deliver on its promise of affordable, high-speed internet will determine its impact on the continent\u2019s digital future.\r\n\r\n bird story agency "

"Starlink Seek Greater Market Share in Africa with “Game-Changing” Router-Free Service"

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