Musk's Starlink set to slash internet costs, expand connectivity

COMMUNICATION

KAMPALA - Uganda has grappled with poor internet infrastructure, high internet costs as well as low penetration rates, which stand at 30%.

John Aloysious Kasoma and Simon Okitela explore the possibility of Starlink satellite being a new dawn to Uganda’s internet trouble.

Uganda is on the cusp of a digital transformation, with the impending launch of Elon Musk’s Starlink satellite internet service offering a new dawn for nationwide connectivity. 

In a country where the cost of internet remains one of the highest in East Africa and access to reliable service is still a privilege for urban dwellers, the entrance of Starlink is seen as a potential game-changer. 

The satellite-based service owned by SpaceX is an American space technology company head-quartered at the Starbase development site near Brownsville, Texas. 

It is designed to provide fast and low-latency internet anywhere on earth, which could address long-standing challenges in Uganda’s digital landscape, especially in rural and underserved regions. 

In late April, this year, President Yoweri Museveni held what was described as a “productive meeting” with Starlink representatives. 

The President commended their commitment to rolling out affordable, high-speed internet across Uganda — particularly in remote communities. The meeting marked a significant political nod, signalling Uganda’s readiness to embrace satellite internet as a strategic complement to existing infrastructure. 

Starlink, operated by SpaceX, officially submitted an application to the Uganda Communications Commission (UCC) seeking regulatory approval. 

The news spread quickly across Ugandan social media on April 17, igniting widespread excitement about the potential for cheaper, more accessible internet. 

As one of the newest frontiers for Starlink’s low earth orbit satellite internet, Uganda is now positioned to benefit from global innovations in space-based connectivity.

Govt welcomes Starlink 

The National Information Technology Authority – Uganda (NITA-U) has welcomed Starlink’s impending entry into the local market. 

Dr Hatwib Mugasa, the executive director of NITA-U, said the initiative aligns well with Uganda’s national digital goals. Mugasa said the Government has been working towards halving internet costs by January 2025, a move aimed at advancing digital inclusion and reducing the urban-rural internet divide. 

“Starlink’s model will unlock broadband access for thousands in regions where fiber or mobile towers are economically or logistically impractical — such as islands, mountainous terrain, refugee settlements and nomadic areas,” Mugasa said. 

He added that current broadband penetration in rural Uganda remains below 30%, based on UCC’s quarter four 2024 data. The arrival of satellite internet could help surpass this threshold by targeting last-mile connectivity. Mugasa said Starlink will not just serve as a technical fix. 

It is expected to catalyse socio-economic development by empowering start-ups, digital innovators, fintechs, and youth-led enterprises in rural and peri-urban areas. 

From digital agriculture and e-learning to mobile commerce and e-governance, Starlink will provide the foundation for transformative change across sectors.

Uganda's digital vision  

Starlink’s entry fits squarely within Uganda’s broader digital development frameworks, including the Digital Uganda Vision, National Development Plan IV (2025–2030), the National Broadband Policy (2022), and the Uganda Digital Acceleration Project (UDAP-GovNet). 

These programmes prioritise universal internet access as a means to enhance public service delivery, economic resilience and inclusive growth. 

Starlink’s low earth orbit satellites are particularly well-suited to Uganda’s geography. 
Unlike traditional internet services that require heavy investment in ground infrastructure, Starlink’s system beams internet directly to small user terminals without the need for fiber cables or cell towers. 

This makes it an ideal solution for geographically isolated areas and communities that have long been cut off from the digital economy. 

Mugasa said by bringing connectivity to hard-to-reach regions, Starlink can improve government operations as well. 

Key public systems like the Integrated Financial Management System, Education Management Information System and Health Management Information System can now operate more reliably in remote areas, improving service delivery and co-ordination.

Ibrahim Bbosa

Closing public services gap 

NITA-U also emphasised Starlink’s potential to strengthen foundational digital services. 
These include national ID registration, passport issuance, digital payments and real-time implementation of grassroots programmes such as the Parish Development Model. 

With access to satellite internet, rural communities can tap into these critical services without the need to travel long distances, thus enhancing government outreach and accountability. 

Furthermore, Starlink can ensure consistent service delivery in disaster-prone areas such as Bududa, Kasese, Karamoja, Bundibugyo and Pakwach. 

These areas are frequently affected by natural disasters such as landslides and floods, which disrupt communication networks. With its resilient infrastructure, Starlink offers a dependable solution that can continue operating in emergencies, ensuring that relief and co-ordination efforts are not delayed.

No licence yet 

Ibrahim Bbossa, the head of public and international relations at UCC, said as of now, Starlink has not yet obtained any regulatory approvals from the UCC to operate in the country. 

“The company has submitted an application for both public infrastructure and provision of services in Uganda, and the application is undergoing the necessary assessment in line with our licensing regulations, and within the timelines set in the law. UCC has three distinct licensing categories; the Public Service Provider (PSP) licence, the Public Infrastructure Provider (PIP) license, and the National Telecom Operator (NTO), which combines both the PSP and PIP,” he said. 

However, Bbossa said, the entry of Starlink into the Ugandan market is certainly a significant development that could reshape the landscape for local internet service providers (ISPs) and the broader telecom industry. 

To understand its potential impact, we can look at similar scenarios in other markets where Starlink has already launched. Starlink leverages satellite technology, which many industry experts consider to be disruptive. 

The crux of the matter lies in whether its services will complement or substitute existing offerings in Uganda,” he said. 

Meanwhile, UCC says for current internet users, Starlink may provide a new option that enhances their connectivity experience, potentially capitalising on already established infrastructure. 

On the flip side, for those in remote and underserved areas, where satellite technology shines, first-time users might face the challenge of needing to buy equipment to access Starlink’s services, which could be a barrier due to the associated costs. 

Local service providers and telecom companies have invested significantly in building and maintaining terrestrial infrastructure. 

This investment strategy contrasts with Starlink’s approach, which relies on satellite operations that do not require extensive ground-based infrastructure. 

As a result, Starlink may have lower capital expenditures compared to traditional providers, which raises intriguing questions about market dynamics and competition. 

Bbossa added that as Starlink comes to Uganda, it will be essential to monitor how these different business models interact, the level of competition that emerges and the overall effects on connectivity for various user segments across the country. 

Starlink will be expected to pay licence fees and spectrum fees in line with the licence category that will be best suited for the services that they intend to offer. 

The licence fees are outlined in the Fees and Fines Regulations. The UCC licensing regime is technology-neutral, and therefore, this means that if Starlink is offering services similar to the ISPs, the licence fees payable by Starlink will be comparable to those paid by the ISPs, irrespective of the technology deployed to offer the service. 

The only distinction would be the regional element since satellite services are not considered regional, but national in their geographical coverage, whereas ISP deploying terrestrial infrastructure can be licensed limited to a specific region in the country. 

Regarding spectrum fees, these are determined based on the specific spectrum band being requested. 

The fees for the spectrum bands specific to satellite services have already been established and would apply uniformly to all operators within those bands.

Dr Hatwib Mugasa

Regulated partnerships 

For Starlink’s deployment in Uganda to be successful and secure, the Government insists that its operations must fall within a regulated framework. 

The Uganda Communications Act (2013) mandates that all communication providers be licensed and must adhere to national spectrum management and cybersecurity standards. 

The Government has indicated that it will use the National Broadband Policy (2022), the Data Protection and Privacy Act (2019), the National Information Security Framework (2021), and UCC’s 2023 Satellite Communication Framework as guiding tools. 

Given Starlink’s strategic impact on national data sovereignty, infrastructure planning and security, authorities believe that a government-led partnership is essential. 

Such an approach would help enforce compliance standards, ensure secure routing of internet traffic, and promote equitable access through public-private collaborations. 
This, officials argue, will protect national interests while advancing inclusive connectivity.

Connectivity disparities 

Uganda still faces severe disparities in digital access. According to recent reports, nearly 94% of households — especially in rural areas — lack meaningful internet connectivity. 

Existing providers such as MTN and Airtel have concentrated investments in profitable urban centres, leaving vast regions unserved or underserved. Starlink’s technology has the potential to leapfrog these infrastructural gaps and bring digital tools to millions. 

By connecting more people, Starlink can support digital education, remote healthcare services, online entrepreneurship, and e-commerce. 

This in turn boosts national productivity, promotes financial inclusion, and opens new pathways for employment and innovation, especially among the youth.

Cost expectations, access 

One of the most closely watched issues is affordability. According to early reports, Starlink’s standard hardware kit is expected to cost around sh1.36m, while a mini kit may go for about sh800,000. 

The monthly subscription fees are estimated at sh120,000 for the mini kit and sh190,000 for the standard setup. 

To ensure that the service reaches those who need it most, NITA-U has proposed a framework that includes price controls in underserved areas, public-private negotiations for subsidised rates, and the establishment of community Wi-Fi hubs. 

These measures are designed to reduce per-user costs and encourage widespread uptake among low-income households and micro-enterprises. Mugasa suggested integrating Starlink into Uganda’s national fiber network to lower international transit expenses. 

Aligning the roll-out with national programmes for device financing, digital skills development, and SME digitisation will further ensure that no one is left behind.

SME empowerment 

The entry of Starlink also presents enormous benefits for small and medium-sized enterprises (SMEs), especially those operating in rural or high-risk environments.

Businesses in remote districts like Karamoja, Bundibugyo and Bududa often suffer from unreliable internet or total exclusion from digital platforms. 

Starlink’s fast and terrain-independent setup allows such enterprises to connect quickly and affordably. From online marketing and virtual customer service to access to digital banking and inventory systems, reliable internet will enhance efficiency and open up new markets for rural entrepreneurs. 

Moreover, digital connectivity can help co-operatives and farmer groups better access weather data, pricing information, and virtual marketplaces, enabling smarter and more profitable decision-making.

A digital leap forward 

With licences already granted in countries like Nigeria, Kenya, Rwanda, Malawi, Zambia and Mozambique, Uganda’s decision to embrace Starlink places it firmly within the vanguard of African nations pursuing bold digital transformation agendas. 

Starlink’s unique proposition — delivering internet directly from space — represents more than just technological novelty. For Uganda, it is a chance to democratise internet access, stimulate economic growth, and improve governance. 

The road ahead will require deliberate policy frameworks, inclusive pricing strategies, and robust partnerships. But if successful, Starlink’s entry could finally make fast, reliable internet not just a luxury for the few, but a basic utility for all.

Airtel, Starlink partnership

In a parallel development, Airtel Africa announced a new partnership with SpaceX to integrate Starlink’s internet solutions across its service areas on the continent. 

In a statement issued on May 5, 2025, Airtel Africa confirmed that SpaceX has already secured licences in nine out of the 14 countries within its operational footprint, with the rest under review. 

The partnership will focus on using Starlink’s low earth orbit satellites to boost connectivity for enterprise clients, schools, healthcare centres, and rural communities. 
Airtel also plans to leverage Starlink for cellular backhaul — extending mobile coverage into previously unreachable regions. 

Airtel Africa CEO Sunil Taldar said the agreement is part of the company’s broader strategy to expand digital access. 

“This collaboration will bring reliable and affordable data connectivity to even the most remote parts of Africa,” he said. Chad Gibbs, the vice-president of Starlink Business Operations, echoed the sentiment. “Our collaboration with Airtel is a natural fit. Their deep experience in African telecoms will complement our satellite capabilities to ensure we reach as many people as possible.”