Midrand-based NEC XON has signed a distribution agreement with France’s Eutelsat to offer services through its low orbiting satellites, the same technology as Elon Musk’s Starlink.
Internet connectivity in rural areas and outside big centres remains limited, and building networking infrastructure in underserved areas is costly.
This week, Eutelsat OneWeb, the low Earth orbiting (LEO) internet operator and part of Eutelsat Group, and SA-based NEC XON, signed a multiyear master distribution agreement to bring LEO connectivity to Sub-Saharan Africa. The agreement encompasses installation, and comprehensive training across the region.
Eutelsat says its technology will provide high throughput, low latency connectivity to support rapid digital economy growth. “This move supports the pressing need for seamless connectivity without borders, in applications such as cellular backhaul, oil and gas, agriculture, government and mining.”
NEC XON hopes the partnership will bolster its delivery of enterprise device terminals and customer support while keeping costs and energy consumption down.
“This is especially true for remote regions, where terrestrial and mobile networks have posed a natural and historical challenge and where traditional VSAT has its limitations.”
VSAT refers to “very small aperture terminal”, a small-sized earth station used in the transmit/receive of data, voice and video signals over a satellite communication network, excluding broadcast television.
NEC XON is the exclusive African partner of Pricer electronic shelf labels (ESLs), small, digital price displays often found in supermarkets and retail chains.
“By teaming up with NEC XON, Eutelsat OneWeb is positioning its satellite prowess with regional expertise to reshape connectivity in Sub-Saharan Africa,” said Cyril Dujardin, co-GM of Eutelsat OneWeb.
Satellite is not perfect
Despite its wide use in many parts of SA, satellite technology has major drawbacks, due to long distances that signals need to travel between satellites and antenna on the ground.
The two major disadvantages have to do with latency (the time it takes for signals to reach their destination) and limited bandwidth (the amount of data that can travel through a signal). Fibre and mobile are therefore seen as superior forms of access.
Low altitude satellites improve on this, offering faster speeds, mainly because satellites are closer to the ground. By sending a large number of these into the sky, creating a constellation, operators have been able to cover the main challenges associated with the technology.
But this comes at a heavy cost. Launching a traditional high altitude satellite is estimated to cost about $500m (about R9.5bn). To launch a network of low altitude satellites such as Starlink or OneWeb costs about $5bn.
The race for satellite dominance
In 2021, SpaceX, a space exploration company owned by SA-born Musk, began offering satellite-based internet services in the US and other parts of the world to connect those without access to fast 3G and 4G mobile connectivity or wired options through telephone or fibre lines. Starlink, uses satellites to connect devices on the ground.
With SA being slow to bring in Starlink technology, a number of telecoms providers are working to secure deals that will — hopefully — put them ahead of the competition, particularly in outlying and remote areas where connectivity continues to be a big headache.
Earlier in the year, communications & digital technologies minister Mondli Gungubele said Starlink had not applied for a licence to operate in SA.
With or without Starlink, telecoms operators are doing what they can to offer services that incorporate low altitude satellites and plug potential holes in their coverage.
At this year’s AfricaCom telecoms conference, the issue of Starlink and satellite communications was a big topic, given the number of recent deals that have been signed including the Eutelsat-NEC XON deal.
In September, Vodacom parent company Vodafone and Project Kuiper, Amazon’s LEO communications initiative, announced a strategic partnership through which Vodafone and Vodacom plan to use Project Kuiper’s network to extend the reach of their 4G and 5G services to more of their customers in Europe and Africa.
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