0
LAGOS – In their bid to tackle the perennial industry challenges that have subjected subscribers to unsteady network services, telecom operators in Nigeria are pushing hard to explore their services through satellite operators like Starlink.
The drive is significantly being reckoned with the latest launch of Amazon LEO (formerly Project Kuiper) in Nigeria which has made its foray into Africa’s satellite internet market.
As part of the industry’s consolation, a seven-year licence the industry regulator, Nigerian Communications Commission (NCC) granted Amazon LEO, effective from February 28, 2026 to operate a constellation of over 3,000 LEO satellites over the country has become an anticipated succour that will bring excitement among the existing telecom operators.
While Amazon’s arrival in the satellite internet market adds competition and choice for users, its threat to Starlink’s dominance remains distant.
As of mid-2026, Amazon had launched 367 operational satellites into orbit which is expected to impact the telecom ecosystem in Nigeria.
A new report by the analyst arm of mobile operator trade association, the GSMA, has claimed that the significant SpaceX IPO valuation reflects expectations that Starlink will seek direct competition with mobile operators, especially in mobile and AI-linked connectivity markets.
With 132 telecom operators globally now offering a satellite service, partnerships between telcos and satellite companies are steadily increasing. “Rather than relying exclusively on external providers, operators are pursuing a shared neutral-host approach to improve economics, influence technology roadmaps and reduce dependency on any single constellation,” states the GSMA Intelligence report.
The study adds that partnerships between telcos and satellite companies suggest the addressable mobile base for satellite- based services to be more than 6 billion people.
Despite most of its total addressable market (TAM) relating to AI opportunities, the mobile arm of the satellite company, Starlink Mobile, seems to be the main commercial driver.
“Starlink Mobile alone has an assigned TAM of $740 billion, signalling SpaceX’s intention to compete for all mobile service revenues today,” states the report. The report suggests overall that the satellite sector is moving toward hybrid models which are driven by competition, collaboration, and geopolitical constraints.
To lend credence to the critical benefits of satellites to telecom operators, MTN and the African United Business Confederation (AUBC) last week had a partnership forum that hosted a high-level business roundtable on satellite broadband, digital inclusion and consumer protection.
The discussions and recommendations emerging from the roundtable, hosted under the theme ‘Regulatory framework, universal access and consumer protection in satellite broadband and available opportunities’, informed future engagements with policymakers, regulators, industry stakeholders and the broader business community.
Orbiting between 160 km and 2,000 km above earth, LEO satellites are close enough to the earth’s surface to deliver faster, more reliable internet connectivity than traditional GEO systems which orbit 35,786 km away from earth. Starlink’s entry and rapid growth in Nigeria initially rattled local telecom operators, who feared that it would eat into their market share and competitiveness in the lucrative internet market. While these fears may seem to have subsided, Amazon LEO coming into the market is now seen as a boost to the telecom operators in Nigeria.
With the telecom operators’ strategic partnerships with some satellite providers to extend their reach into rural and remote markets, the fear of future domination is now declining.
In December 2025, Airtel Africa partnered with SpaceX to introduce Starlink’s direct-tocell satellite technology to all its 14 markets, to enable customers with compatible smartphones in regions without terrestrial coverage to have network connectivity through Starlink.
The service supports text messaging; the USSD (unstructured supplementary service data) used for example by many banking services; mobile money transactions; and select data applications such as WhatsApp, Airtel Africa says.
It notes that additional high-speed data capabilities would be introduced as newer Starlink satellites are deployed. Airtel Nigeria’s CEO, Dinesh Balsing, noted that the move to partner with Starlink is aimed at closing coverage gaps in deep rural and hard-to-reach areas.
He stressed that the collaboration is distinct from Starlink’s existing service that requires users to install routers and dishes as well as pay monthly subscriptions.
According to him, “This is not about buying a Starlink kit or putting anything on your roof. This is direct-to-mobile connectivity.
Customers with compatible 4G or 5G smartphones will be able to connect directly to satellites when they move into areas where there is no terrestrial network.”
With the LEO-based solutions, it first employs direct-to-cellular technology to augment network access in traditionally under- served regions. Importantly, this technology is device-agnostic, ensuring compatibility with existing mobile units and requiring no special modifications.
The second solution uses LEO satellites to provide critical fixed connectivity for enterprise customers and efficient backhaul connectivity for MTN cellular sites. This is particularly relevant in remote and rural locations, where it offers a more affordable and efficient alternative.
According to MTN, “We are also collaborating with Omnispace to explore the use of S-band for satellite services to expand MTN’s portfolio of wireless service in both MTN and Omnispace’s markets.
This initiative underscores both companies’ commitment to develop cost-effective global connectivity solutions beyond existing cellular land-based networks.”
Just like Starlink, Amazon LEO service is expected to be highly attractive to MNOs as it will enable them to improve and differentiate their service offering without significant incremental capital investments, and enable telecom operators augment and extend their coverage without building towers or other land-based infrastructure, including where it is not cost-justified or is difficult due to geographical challenges.
According to the service provider, LEO was created to help millions of people in remote parts of Africa who have no connectivity at all. Amazon Leo, Amazon’s low-earth-orbit satellite network, was created to help address this.
Starlink debuted in Africa in 2023 with a launch in Nigeria and has since expanded to 27 countries reaching an estimated 500,000 users. While the continent currently accounts for only a fraction of Starlink’s total revenue and global user base, its growth potential is significant.
