Starlink’s Uganda entry sparks telecom scramble as MTN, Airtel race for satellite advantage

Uganda’s biggest telecom operators are moving quickly to align themselves with Starlink after years of viewing satellite internet providers as potential disruptors to their dominance.

• MTN Uganda is in talks with Starlink as telecom operators increasingly view satellite internet as a partner rather than a competitor.
• The partnership could help operators extend coverage to remote areas where building traditional infrastructure remains commercially unviable.
• Airtel Uganda has already begun testing Starlink’s Direct-to-Cell satellite technology after securing regulatory approval.
• The developments signal a broader shift in Africa’s telecom industry, with satellite connectivity becoming central to rural digital expansion.

Now, the arrival of Elon Musk’s satellite internet company is triggering a strategic shift across East Africa’s telecom sector, one that could reshape how millions of people in remote areas access mobile and internet services.

MTN Uganda is currently in talks with Starlink about a potential partnership to extend connectivity to hard-to-reach parts of Uganda and Zambia, according to officials familiar with the discussions.

The move comes just days after Ugandan authorities approved Starlink’s entry into the market on May 14, following more than a year of regulatory negotiations and security-related scrutiny.

For telecom operators, the partnership could solve one of the industry’s longest-running problems: how to provide network coverage in remote regions where building traditional telecom infrastructure is often too expensive to justify on commercial grounds.

“There are places, such as some of the islands on Lake Victoria, where we are supposed to have network presence, but it doesn’t make economic sense.

“Starlink would help us deliver the service there. That would enable us to meet our licence obligations without expending a corresponding amount in capex,” MTN Uganda chairman Charles Mbire said.

Despite operating in Uganda for nearly three decades, operators such as MTN and Airtel Uganda still face gaps in rural coverage due to low customer density, limited access to electricity, and high infrastructure costs.

That challenge has repeatedly put telecom companies under pressure from the Uganda Communications Commission, which requires nationwide coverage as a licensing condition.

But Starlink’s low-earth orbit satellite technology is now offering operators a potentially cheaper route into areas that have long remained commercially unattractive.

The partnership discussions also highlight a dramatic change in how major telecom companies view Starlink.

When the company first sought entry into African markets, operators feared it could weaken traditional mobile and broadband businesses. Instead, firms are increasingly exploring ways to integrate Starlink’s infrastructure into their own networks.

Mbire said MTN’s main concern was not competition itself, but ensuring that Starlink operates under the same tax and regulatory conditions as existing telecom companies.

“As long as there is a level playing field and they are taxed as we are, we have no issue with Starlink,” he said.

Ugandan authorities appear to have addressed some of those concerns.

President Yoweri Museveni said Starlink’s licensing conditions require the company to establish a physical presence in Uganda, register customer devices locally and maintain technical and legal support operations within the country.

Officials say the measures are intended to strengthen security oversight, taxation and customer accountability.

Security agencies have privately raised concerns about how Starlink devices are monitored. Telecom engineers say conventional GSM phones can typically be traced with far greater precision than satellite terminals, potentially complicating surveillance and law enforcement operations.

While MTN continues negotiations, Airtel Uganda has already moved ahead.

On May 19, the company announced that it had secured regulatory approval to begin testing Starlink’s Direct-to-Cell satellite service across Uganda.

The technology effectively transforms satellites into orbiting cell towers, allowing ordinary smartphones to connect directly to satellites without specialised hardware.

Airtel Uganda CEO Soumendra Sahu described the technology as a “game changer” for underserved areas such as the Buvuma Islands and Murchison Falls National Park.

For Uganda’s telecom industry, the bigger shift may not simply be faster internet in remote areas.

It is the growing recognition that satellite companies once viewed as competitors may instead become essential partners in Africa’s next phase of digital expansion.