MTN is in talks with providers like Starlink, Elon Musk’s satellite company, as it pursues a plan to expand its network to reach 95% of the population in the countries where it operates.
Although significant strides have been made in the last ten years, internet access in remote locations and outside of major cities still lags behind. The financial burden of constructing network infrastructure in these neglected areas is high. According to GSMA, a global organization for telecoms, the shortfall in network coverage across sub-Saharan Africa has reduced from 50% in 2014 to 17% in 2022.
In recent times, satellites that orbit at a low earth’s altitude (LEO) have become popular as a solution to these coverage deficits.
To enhance network coverage, MTN relies on “two unique yet synergistic LEO-based solutions,” says Mazen Mroué, the group’s Chief Technology and Information Officer.
The two major drawbacks of traditional satellite technology are latency (the delay before the received signal) and limited bandwidth (the capacity for data transmission within the signal). As a result, fibre and mobile are generally considered superior modes of access.
Satellites at low altitudes enhance these aspects, primarily providing faster speeds since they are closer to Earth. By launching a plethora of these into orbit, thereby creating a constellation, operators have managed to address the major hurdles associated with satellite technology.
However, this approach comes with significant expenses. The estimated cost to launch a traditional high-altitude satellite is around $500m (approximately R9.5bn). To launch a network of low-altitude satellites like Starlink or OneWeb, the cost shoots up to about $5bn.
MTN strategizes to increase connectivity
In pursuit of this, MTN and telecom competitors like Vodacom, Telkom, and Liquid have opted to collaborate with expert satellite providers for these types of initiatives.
To complement our terrestrial network — where the terrain can be difficult for radio sites and backhaul transport and sparse population distribution often makes regular cellular rollout uneconomical — we are now exploring the skies. Specifically, we are partnering for LEO satellite connectivity to connect the unconnected, extend mobile connectivity to more rural and remote areas and improve resilience.
Mazen Mroué
The group has set a goal of expanding its broadband population coverage across its markets to 95% by 2025, up from 88% in 2022.
MTN says “multiple initiatives are under way” to make this happen including upcoming direct-to-cell trials with Lynk Global in SA and Ghana. Direct-to-cellular is the first leg of the company’s strategy, which would see mobile devices being able to communicate or transfer data with satellites, in addition to cellular towers.
Vodacom is also in the process of developing comparable technology.
The second phase involves using LEO satellites to provide fixed connectivity for business customers and efficient backhaul connectivity for MTN cellular sites, especially in remote and rural areas.
Mroué said discussions are taking place with providers such as AST SpaceMobile for trials in Nigeria and South Sudan. “Concurrently, there are ongoing engagements with SpaceX’s Starlink, with enterprise-grade trials under way in Rwanda and Nigeria. In parallel, we are advancing discussions with Eutelsat OneWeb for a planned pilot in SA.”
Satellite dominance race
In 2021, SpaceX, a space exploration firm owned by South African-born innovator Elon Musk, initiated the offering of internet services via satellites in the US and other parts of the world. This was intended to cater to those lacking access to rapid 3G and 4G mobile connectivity, or wired alternatives via telephone or fibre lines. Starlink, a subsidiary of SpaceX, employs satellites to enable ground device connectivity.
Due to South Africa’s slow adoption of Starlink technology, multiple telecom providers are actively seeking deals that could potentially give them a competitive edge. This advantage is particularly vital in outlying and remote regions where connectivity remains a significant challenge.
Earlier this year, Mondli Gungubele, the minister for Communications & Digital Technologies, stated that Starlink had not yet applied for an operating license in South Africa.
Regardless of Starlink’s involvement, telecom operators are striving to incorporate low altitude satellite services to address any possible gaps in their network coverage.
In September, Vodafone, Vodacom’s parent company, announced a strategic partnership with Project Kuiper, Amazon’s LEO communications initiative. Vodafone and Vodacom plan to utilize Project Kuiper’s network to extend their 4G and 5G services to a more substantial portion of their customer base in Europe and Africa.
