Despite ban, StarSat Africa reduces pricing for Starlink kits in South Africa

StarSat Africa, the Mozambique-based Starlink importer servicing South Africa, plans to slash prices for Starlink equipment by 13% to 20% by the end of February 2024. This price reduction follows SpaceX’s recent decision to offer bulk order discounts. The planned price cut is set to occur despite Starlink being banned by South Africa’s communications regulator, the Independent Communications Authority of South Africa (ICASA).

StarSat Africa revealed plans to reduce the current R14,999 ($789.56) price for Starlink units to somewhere between R12,000 ($631.69) and R13,000 ($684.33). The price includes all shipment, VAT, and import charges. The company asserts that although the cut might be lower than previously anticipated, they need to accommodate all operational costs and government fees.

As part of its mission to bridge the digital divide in Southern Africa and beyond, StarSat provides satellite internet services to a number of African nations. In addition to South Africa, StarSat Africa imports and delivers Starlink kits to 17 sub-Saharan countries including Botswana, Namibia, Zimbabwe, Tanzania, and Kenya.

Presently, Rwanda is the most cost-effective country in Africa to purchase a Starlink kit, with the price set at 485,000 Rwandan francs ($377). The remaining seven countries in Africa where Starlink operates offer prices ranging between $389 and $631.

While South Africans can purchase these kits at reduced prices from any of these countries and bring them into South Africa, they would still need to cover additional costs such as taxes and shipping fees.

Due to exceptionally high demand, Starsat Africa’s lead time for Starlink kit orders now reaches up to four months. The company reports a backlog of approximately 300 units for Namibia, 72 for South Africa, along with an additional 300 units from Black Friday orders expected to arrive shortly.

Starsat Africa aims to clear all outstanding orders by the end of March. Once the backlog is cleared, customers can expect their orders to arrive within two days of dispatch.

Despite the Independent Communications Authority of South Africa (ICASA) warning that using Starlink service in the country is illegal without the necessary operating and spectrum license, over 14,000 StarSat customers in South Africa continue to use the service.

While Starlink is not officially authorized in South Africa, its roaming services are still available countrywide. ICASA is not the only African regulatory body to prohibit Starlink. The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) recently collaborated with the police to launch a nationwide crackdown on violators.

In December 2023, the National Communication Authority, the telecommunications regulator for Ghana, deemed Starlink illegal, instructing anyone using or selling the service in Ghana to halt immediately. Similarly, Botswana rejected Starlink’s bid to operate in the country, citing “missing requirements” in its application.