MTN joins the space internet race. Photo credits: Pixabay
22nd November, 2024
Africa’s largest mobile operator, MTN is exploring the possibility of a partnership with Low Earth Orbit (LEO) satellite providers to expand its network to Africa’s rural and remote areas. According to Ralph Mupita, the group’s CEO, MTN, this move is calculated to bring internet connections to underserved customers.
“To keep customers and businesses connected at all times, we’re going to have to embrace satellite as an additional technology form…We are exploring several, and actually, some of them we’re happy to be resellers through our enterprise business to some of our customers in specific countries.” Mupita said
LEO satellites, because they orbit closer to Earth than traditional satellites, offer faster speeds and lower latency. For remote communities, this could mean reliable internet without the usual high costs and difficulties associated with terrestrial infrastructure, such as fibre and mobile broadband.
The idea of a partnership with LEO satellite providers comes off the back of the recent MTN 5.5G trials, which is the first of its kind in Africa. After a tough financial period, Nigeria, one of its biggest markets, saw declining revenues. The mobile operator company seems to be doubling down on innovation to turn things around.
The company is already testing the waters with pilot projects in some of its major service bases. At the same time, South Africa’s Independent Communication Authority is prepping licences and regulations for LEO satellite operators to ensure fairness and compliance, especially for local players.
According to Reuters, MTN is not alone in seeking out partnership agreements with satellite providers. Smaller rival Cell C is also treading the same path.
South Africa’s biggest operator, Vodacom, largely owned by Britain’s Vodafone, announced a partnership with Amazon’s Project Kuiper LEO satellite last year.
“We’re very aware of the challenges of having to compete as a fixed and wireless operator with LEO satellites over time, so we’re arranging ourselves to be able to sure-proof our businesses in our key markets,” Mupita said.
Starlink, as a satellite provider, is an active force in several African countries but has encountered regulatory hurdles in some, including South Africa, where it has also faced pushback from state-owned telecom companies.
South Africa’s regulator, ICASA, is currently developing a regulatory and licensing framework for satellite internet providers to establish clear guidelines for operators.
“LEO operators should be treated the same as terrestrial operators such as ourselves, subjected to the same regulatory requirements whether it’s around data privacy, data transport, localization and access to spectrum,” Mupita said.
If successful, this satellite play could position MTN as a leader in bridging Africa’s digital divide while boosting its bottom line.
