Despite having a relatively small subscriber base, Starlink poses a significant threat to incumbent telecom companies by targeting small office/home office (SOHO) and small and medium-sized business (SMB) customers.

In response to the challenges posed by low Earth orbit (LEO) satellite connectivity, African telecom firms are initiating various strategies to enhance their market position.

This competitive landscape has prompted more collaboration among telecom companies and alternative LEO operators as they work to maintain their market share.

Collaborations among telecom companies are already underway, with partnerships like Orange and Vodacom in Uganda, Safaricom with ESD Kenya, and ZainTech with Arabsat in North Africa.

Local telecom companies still have the advantage of offering unique tech-based services to small and medium-sized businesses, such as supply chain management and mobile payments, which global LEOs may not provide.

Ismail Patel from GlobalData highlights that the shift in focus by telcos is largely influenced by Starlink, which is creating opportunities in previously neglected areas.

Regulatory approaches to Starlink's operations vary across Africa, with some governments imposing licensing requirements while others see its potential to enhance rural economies.

Starlink is set to expand its competitive presence in Africa by launching in 14 new markets in 2025, which is increasing pressure on traditional telecom providers.