By Loni Prinsloo.
Vodacom Group, South Africa’s biggest phone company, has partnered with Elon Musk’s Starlink to increase broadband connectivity in its markets on the continent.
The Johannesburg-based firm will integrate Starlink’s satellite backhaul into Vodacom’s mobile network, which will accelerate network-coverage expansion while increasing network performance in rural areas, the companies said in an emailed statement on Wednesday.
Musk backs SpaceX, which owns the Starlink network.”Starlink is already serving people, businesses, and organisations in 25 African countries,” SpaceX vice president Chad Gibbs said. “By collaborating with Vodacom, Starlink can deliver reliable, high-speed connectivity to even more customers.”
Starlink has struck partnership pacts to distribute and provide internet services in remote areas in many parts of the world, shying away from equity or ownership deals that are required to operate in Vodacom’s home market of South Africa.
The nation’s government is looking into possibly amending some of its rules to enable info-tech companies to operate locally, using equity-equivalent programs instead of a 30% Black-ownership requirement.
An amendment to the industry rules would allow telecoms companies to invest in projects such as infrastructure, digital-inclusion initiatives or research that benefits previously disadvantaged communities. That type of exemption is already standard for a number of industries, including the nation’s auto sector. In 2019, car manufacturers — including BMW AG, Ford Motor Co and Toyota Motor Corp – established a fund that would bring disenfranchised groups into the sector.
Rolling out the service will depend on “where it’s licensed,” Vodacom chief executive officer Shameel Joosub said in an interview Monday.
Vodacom will also sell Starlink equipment and services to enterprise and small businesses in Africa, it said. The deal aligns with the firm’s 2030 strategy to grow its customer base to 260 million and its financial services customers to 120 million within five years.