MTN’s infrastructure unit has signed a deal to offer a low-Earth orbit (LEO) satellite service, the likes of which Elon Musk’s Starlink has popularised in recent years.
On Wednesday, the group’s recently rebranded infrastructure business, Bayobab (formerly MTN Global Connect), announced a multiyear agreement for LEO capacity on Eutelsat’s OneWeb satellite constellation.
“This collaboration aims to address the connectivity needs for enterprises and cellular backhaul, providing reliable solutions to enhance network performance and customer experience across the continent,” said Bayobab.
The firm is the latest telecom group to sign with the French satellite provider, following similar deals with Seacom, Liquid, NEC XON, and Avanti for regional LEO services in recent months.
Bayobab says it will leverage OneWeb’s constellation to deliver fixed connectivity services. “By improving coverage in rural areas, these innovative satellite solutions will provide high-quality connectivity and reduced latency.”
The implementation will be completed across the continent by December 2024, with services already available in four African countries.
“We’re passionate about being at the forefront of harnessing technology to empower people and businesses across Africa,” said Bayobab CEO Frédéric Schepens.
“Our partnership with Eutelsat and the integration of OneWeb’s LEO satellite services into our solutions is testament to this commitment. This collaboration brings cutting-edge digital connectivity to even the most remote corners of the continent and reaffirms our promise of ‘connecting Africa’ — a promise rooted in partnership and driven by a vision of a digitally inclusive future.”
MTN’s technology chief, Mazen Mroué, recently told Business Day that covering gaps in its network is the biggest strategic value the group sees in satellite.
In recent years LEO satellites have grown in favour as a way to plug these gaps, with Starlink being the best-known such service. One big reason for the growth in LEO satellite use is the cost. Transporting equipment into space is now much cheaper than it was decades ago, in part because space rockets are now reusable — as demonstrated by SpaceX.
In terms of connectivity, the two disadvantages with traditional satellite technology 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 they are closer to the ground. By launching many such satellites into the sky, creating a constellation, operators have been able to cover the main challenges associated with the technology. Thanks to these advances, operators predict that some functions of ground base stations and cellphone towers will be taken into the sky.
MTN has invested heavily to grow the Bayobab business, and is undertaking a R6bn project between East and West Africa.
In recent years, MTN has ramped up its fibre-building efforts in Africa, where it already operates the largest mobile network. As part of the expansion, the group is working to create a separate fibre unit after the separation of its fintech business.
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