Low earth orbit (LEO) satellite Internet services are a hot topic in Uganda’s tech community, with services like Starlink frequently trending in online conversations as the government deliberates on whether to allow them in our market and under what conditions.
The appeal of LEOs is clear: global coverage, fast deployment, and the promise of high-speed connectivity in even the most remote corners of the world. LEO operators such as Starlink, Amazon’s Project Kuiper, and SpaceSail represent a transformative shift in global telecommunications. They offer undeniable potential in markets where terrestrial infrastructure is limited or completely absent. However, in developing markets like Uganda, where the sector is evolving rapidly, we feel that it’s important to approach these developments with caution.
Uganda’s market has developed rapidly over the past 15 years. Wholesale bandwidth pricing has dropped from $4,000 to $1.50 per megabit. We now have multiple cross-border fibre backbones and good metro fibre coverage in most urban areas – with wireless and mobile networks extending beyond that. While there are still challenges, particularly around affordability due to taxes (which make up approximately 60% of the retail price), accessibility, and quality of service, the situation is improving rapidly, and the foundation for sustainable local growth and digital autonomy is in place.
The challenge with LEO services is that they bypass the terrestrial infrastructure that local operators and governments have spent years building. They send local Internet traffic into the sky, circumventing our fibre networks, Internet exchange points, and data centers. If these services were to gain significant traction, it could discourage future investment in domestic infrastructure, undermine the sustainability of local ISPs who employ Ugandans in large numbers, and create a significant digital dependency. Uganda would have
little leverage if such providers were to suddenly change their terms of service, restrict access, or raise prices, especially in a scenario where local alternatives have eroded.
A particular point of concern is the possibility that LEO services might not deploy a local IP node or ground station within Uganda. If user traffic is routed through the sky to neighbouring countries, or even further afield, it would encourage networks to host content and interconnect in those locations instead of Uganda. This would directly threaten Uganda’s emerging role as a regional network interconnection hub just as we are beginning to see momentum.
It is worth noting that Uganda offers some important potential advantages for LEO operators looking to establish ground stations. Our central geographic location within the East African Internet ecosystem positions us to deliver the lowest average latency to neighboring countries' networks. This makes Uganda a strategic choice not only for national connectivity but also as an inland regional hub for LEO infrastructure.
In summary, we’re not opposed to LEO satellite systems and believe they can play an important role, especially in under-served areas – but if they are to operate in Uganda, we feel that it is essential to ensure that their integration is done in a way that supports, rather than undermines, our local ecosystem by requiring them to:
- Deploy a local IP node and/or ground station and route local user traffic via Uganda;
- Only provide service to users in rural areas;
- Register a local operating company, or partner with one, and pay taxes accordingly;
- Comply with all other relevant national regulations, just like any other operator.
LEO satellite services hold exciting potential, but without thoughtful integration, they risk undermining investment in terrestrial infrastructure – the metro networks, fibre backbones, data centers, and exchange points that form the foundation of Uganda’s digital economy. This infrastructure is not just about connectivity; it is the key to our national autonomy and influence in the global digital landscape.
By establishing clear rules for LEO operators, Uganda can embrace this promising innovation while safeguarding critical investment, protecting skilled jobs, and promoting long-term growth.
