African Internet Market: Starlink Faces Cost Challenge 30 Months After Its Arrival


Elon Musk’s company launched its commercial operations in Africa at the end of January 2023 with Nigeria. Since then, it has expanded to more than 20 other countries, including Benin, Niger, Rwanda, Zimbabwe, Kenya, Ghana, and the DRC.

When it arrived in 2023, Starlink promised to democratize internet access across the African continent, including in the most remote areas with poor coverage or no services at all. Well before its implementation, a major obstacle was already identified: the limited financial capacity of African households to access the internet, regardless of the provider. Thirty months and some twenty countries covered later, the question of whether this promise can be fulfilled in the face of the reality of purchasing power remains a current issue.

To assess this promise, we must first assess the cost to a potential subscriber. Starlink offers internet access via a constellation of low-orbit satellites. In Africa, customers must purchase a connection kit, which costs an average of $200 to $400 depending on the model. In addition, there is a monthly subscription fee of $30 to $50, depending on the offering and the market. Specific packages are sometimes offered, adapted to specific local contexts.

Starlink offers against already well-established competition

In the market, Starlink faces direct competition from telecom operators and internet service providers. Unlike its satellite rivals like Eutelsat or OneWeb, which operate through intermediaries (operators, integrators, ISPs), Starlink sells its services directly to end users, putting it head-to-head with traditional players in the sector.

In the Democratic Republic of Congo (DRC), for example, the market is dominated by established operators such as Orange, Airtel, Africell, and Vodacom, as well as providers such as Vivendi subsidiary CanalBox. These players offer a variety of fixed and mobile plans, with monthly plans ranging from $10 to $100, depending on data volume and connection speed.

In Chad, Airtel and Moov Africa offer mobile internet plans ranging from around $9 to around $90 for data volumes ranging from 1 GB to 45 GB, or even unlimited. Moov Africa also offers fiber optic service starting at around $45 per month, with a 4G router selling for around $160.

Accessibility limited by income gaps

By 2023, Starlink’s $50 monthly plan alone would account for nearly 37% of sub-Saharan Africa’s monthly gross national income (GNI) per capita, according to World Bank estimates. Even at $30, the lowest rate offered, that still represents 22.2% of that income.

In several countries, the service even exceeds the average monthly income. In Niger, where the monthly GNI per capita was $51.6 in 2023, a Starlink subscription cost $54.9. In Liberia, the cheapest offer at $40 is equivalent to 67.6% of the monthly GNI per capita. In Zimbabwe, the same offer at $30 corresponds to 17.5% of an estimated monthly GNI of $171.67.

For comparison, the International Telecommunications Union ( ITU) reports that fixed internet services represent an average of 14.8% of monthly GNI per capita on the continent. However, the organization considers a service affordable when its cost does not exceed 2% of this income.

Mixed reviews

Given these various elements, one might wonder whether Starlink truly solves the continent’s internet access problems. In Africa, opinions remain mixed: some users consider the service too expensive, others consider it a welcome solution, while a third category believes that, despite its high cost, it remains better value for money than traditional operators.

Thanks to its satellite constellation, Starlink theoretically addresses the issue of network coverage. In practice, this coverage only becomes effective once the user has a Starlink kit. However, coverage alone is not enough. For example, according to GSMA data, in sub-Saharan Africa, 710 million people, or 60% of the population, did not use mobile internet in 2023, despite being in areas covered by a network. The mobile internet penetration rate was 27%, while 13% of the population remained without coverage.

On an individual level, those who already use the internet are likely to be the first to improve their experience by migrating to Starlink, thus benefiting from a better quality of service. However, for those who do not yet have internet access, the mere presence of Starlink in their area is not enough to guarantee rapid adoption, particularly due to financial and technical constraints.

Source: Agence ecofin

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