Vodacom Group CTO Dejan Kastelic (pictured) believes satellite providers like Starlink are not a threat to mobile operators but rather an opportunity to enhance telecom services in emerging markets with challenging infrastructure deployment.
Speaking to Developing Telecoms, Kastelic stated that satellite connectivity “can be a big differentiator for us,” especially in Africa, where the vast and remote landscape makes infrastructure expansion difficult. Vodacom operates in six markets across the continent and has joint ventures with Safaricom in Ethiopia and Kenya.
“Having satellite connectivity would almost enable us to achieve 100% coverage,” Kastelic said.
Some analysts have suggested that satellite connectivity providers pose a threat to traditional telecom operators, particularly with the rise of Elon Musk’s Starlink, the satellite internet division of SpaceX. Starlink has launched services in Kenya and Mozambique, where Vodacom also operates.
Starlink provides high-speed, low-latency broadband internet using a constellation of low Earth orbit (LEO) satellites, which beam connectivity directly to terminals without relying on terrestrial infrastructure.
However, Kastelic argued that satellite providers like Starlink, which connect subscribers without telecom partnerships, cannot match the service quality of traditional operators.
“Fibre and 5G FWA offer a better customer experience due to superior throughput and latency. Fibre, in particular, is unbeatable—it’s physically impossible for another medium to be faster than fibre. It’s just physics.”
“Our terrestrial solutions have a significant advantage. We just need to ensure that our propositions and the way we develop our products and services remain competitive against satellite providers,” he added.
To illustrate this, Kastelic compared latency speeds, noting that satellite networks can experience ping speeds of up to 100 milliseconds, whereas fibre achieves single-digit latency.
“Are we concerned? Of course, like any competitive enterprise, we are monitoring developments closely. But we believe our existing assets give us a strong advantage,” he said.
In 2023, Kastelic told Developing Telecoms that Vodacom was exploring partnerships with AST SpaceMobile and Starlink to address coverage gaps. However, a deal with Starlink did not materialise. Instead, Vodacom’s parent company, Vodafone, signed a 10-year agreement with AST SpaceMobile, extending until 2034.
Explaining why Vodafone and Vodacom have placed their bets on AST SpaceMobile, Kastelic highlighted that the company holds over 3,400 patents—more than its competitors—allowing it to expand coverage with fewer satellites in orbit.
Accenture’s Managing Director for Communications, Media & Technology Lead Africa, Nitesh Singh, told Developing Telecoms at Africa Tech Festival last year that operators must embrace digital transformation to compete with new entrants like Starlink.
Meanwhile, MTN Group CEO Ralph Mupita recently told Bloomberg that the operator is looking to expand its partnerships with satellite providers, including Starlink, to bridge coverage gaps in its markets.
