Cell C is actively negotiating with SpaceX’s Starlink and Amazon Leo to bring satellite broadband and direct-to-device connectivity to its South African customer base. CEO Jorge Mendes confirmed the confidential discussions, which explore both reselling satellite hardware and enabling unmodified smartphones to connect directly to satellites in orbit.
We’re in discussions with Starlink. We’re in discussions with Amazon. We’re in discussions with everybody.
- Jorge Mendes, CEO, Cell C
This approach aligns with Cell C’s broader "network of networks" strategy. Because the carrier relies on Vodacom and MTN for its radio access network rather than building its own, adding non-terrestrial connectivity is a natural expansion. Mendes emphasized that satellite and terrestrial networks are complementary, ultimately driving down consumer prices.
On the regulatory front, Amazon Leo has already secured a non-exclusive distribution route in South Africa through the Maziv-owned ISP Herotel, which plans to launch the "Evry" brand in 2027. Starlink, however, remains unlicensed due to the Independent Communications Authority of South Africa (Icasa) requiring 30% ownership by historically disadvantaged groups.
Despite Communications Minister Solly Malatsi proposing equity equivalent investment programmes (EEIPs) as an alternative, Icasa stated it requires an amendment to the Electronic Communications Act to proceed. Meanwhile, the broader African telecom market is rapidly advancing its satellite capabilities:
- MTN: Successfully tested South Africa's first satellite direct-to-mobile call using Lynk Global’s satellites and unmodified handsets on its licensed spectrum.
- Vodacom: Partnered with Amazon Leo for network backhaul and holds exclusive rights to sell AST SpaceMobile services in Africa, though a commercial launch is pending.
- Airtel: Activated the continent’s first Starlink direct-to-mobile service in the Democratic Republic of Congo this month.
The Agnostic Advantage in a Satellite Race
Cell C’s lack of proprietary terrestrial infrastructure is transforming from a historical weakness into a strategic asset. By positioning itself purely as a service aggregator, the company can seamlessly integrate low Earth orbit (LEO) networks without cannibalizing its own tower investments. This agility allows them to play major satellite providers against each other to secure the best wholesale rates.
However, the true bottleneck isn't technology - it's Icasa's regulatory gridlock. Until the Electronic Communications Act is amended to accommodate alternative equity models, South African carriers will be forced into complex, indirect distribution deals. If the regulatory framework doesn't adapt quickly, South African consumers will continue to watch neighboring markets leapfrog them in the direct-to-device space.
