Vodacom seals deal with Elon Musk’s Starlink

Vodacom announced that it has entered into a “pivotal” deal with billionaire Elon Musk’s Starlink to deliver high-speed, low-latency broadband internet to African businesses.

The South African network operator said this deal would help to expand rural network coverage in the country, marking a crucial step in bridging the “digital divide”.

Vodacom is the biggest telecommunications company in South Africa, with a customer base of 223.2 million and ambitions to grow this figure to 260 million over the next five years.

Starlink is the world’s largest satellite broadband provider. It is operated by Starlink Services, a wholly owned subsidiary of Musk’s SpaceX. 

On Wednesday, 12 November, Vodacom announced what it described as a “pivotal agreement” between the two companies.

This deal will integrate Starlink’s satellite backhaul into Vodacom’s mobile network, aiming to accelerate network coverage expansion and improve network performance in rural areas. 

“The collaboration will deliver robust connectivity to remote schools, health centres, and communities, empowering millions with access to digital services and information,” Vodacom said.

As part of the deal, Vodacom will be authorised to resell Starlink equipment and services to enterprise and small business customers in Africa.

However, it pointed out that it will retain the flexibility to create localised value propositions that consider the unique requirements and affordability of the African market.

Vodacom said it has already created a suite of relevant products tailored to various industries, including mining, agriculture, and retail. 

The operator already offers 4G,5G, fiber, MPLS, Microwave and GEO Sat coverage across its markets, with Starlink’s high-performance internet considered a perfect addition to these offerings.

This deal aligns with Vodacom’s Vision 2030 strategy, whereby the operator plans to grow its customer base to 260 million and its financial services customers to 120 million within five years. 

“By harnessing Starlink as a complementary layer, Vodacom is edging closer to universal coverage and reaffirming its commitment to connecting people to a better future,” the company said.

“We are delighted to collaborate with Starlink, a move that accelerates our mission to connect every African to the internet,” CEO Shameel Joosub said. 

“Low Earth orbit satellite technology will help bridge the digital divide where traditional infrastructure is not feasible, and this partnership will unlock new possibilities for the unconnected.”

The Vice President of Starlink Operations at SpaceX, Chad Gibbs, added that Starlink is already serving people, businesses, and organisations in 25 African countries. 

“By collaborating with Vodacom, Starlink can deliver reliable, high-speed connectivity to even more customers, transforming lives and communities across the continent,” Gibbs said.

This deal comes amidst a deal-making spree for Vodacom, as the operator plans to accelerate broadband coverage across its African markets through additional deals and partnerships.

The telecoms giant also recently received regulatory approvals to buy a R13 billion stake in Remgro’s fiber business.