Amazon applies for 15-year satellite gateway license in Kenya in 2026

en.Wedoany.com Reported - Amazon is advancing its low-Earth-orbit satellite internet business, Leo (Amazon Leo), in Africa through two paths: building its own ground infrastructure and partnering with operators. This market is currently dominated by Starlink: as of mid-2026, Starlink has covered 26 African markets with approximately 300,000 users. Unlike Starlink's focus on consumer terminals, Amazon's approach leans more toward network infrastructure.

In Kenya, Amazon's subsidiary, Amazon Kuiper Kenya Limited, has applied for a 15-year international gateway operator license to establish satellite earth stations and a network control center; the company had previously also applied for a network facilities provider license. The gateway will connect the satellite network to terrestrial and international networks, forming the foundation for expansion. In South Africa, Herotel will handle installation, customer service, and field operations after Leo's commercial launch in 2027. Amazon has also reached an agreement with Vodafone to use Leo to connect remote 4G/5G sites, a model that could extend to more African markets via Vodacom.

Operators such as MTN, Airtel, Vodacom, and Orange have already used satellite to complement fiber and microwave in certain scenarios, choosing to purchase capacity based on cost rather than building new terrestrial lines. Dinesh Balsingh, CEO of Airtel Nigeria, said at the company's first media roundtable of 2026 that Airtel has adopted satellite technology in areas where terrestrial fiber is not feasible. Analysys Mason estimates that in such markets, low-Earth-orbit satellite backhaul could reduce rural network deployment time by 40% to 60%. Airtel has also expanded satellite applications beyond backhaul: in August, it launched Starlink satellite-to-mobile services in the Democratic Republic of Congo (DRC), combining satellite coverage with terrestrial mobile networks to reach areas beyond the scope of traditional infrastructure.

MTN Group positions satellite as complementary rather than substitutive. Ebenezer Asante, Senior Vice President for Southern and Eastern Africa, Ghana, and Sudan, stated that "the way out for all disruptive technologies, and satellite is no exception, is to find ways to collaborate," adding that MTN does not view emerging technologies as threats but requires regulation to keep pace with technological development. Group CEO and President Ralph Mupita said: "Satellites are not here to replace terrestrial networks; they are here to complement them, especially in remote areas and waters where traditional infrastructure cannot reach. At MTN, this manifests in three areas: enterprise backhaul, home broadband, and direct-to-device connectivity."

The most commercially valuable scenario for satellite is in areas where the cost of terrestrial expansion is prohibitively high. A study commissioned by Amazon and conducted by Access Partnership estimates that non-geostationary orbit (NGSO) satellite systems could save operators in the Southern African Development Community (SADC) at least $10.3 billion in terrestrial infrastructure costs and generate up to $16.9 billion in annual economic benefits. This figure is not a forecast of actual savings, but it reflects the market logic Amazon is targeting: satellite capacity is only price-competitive where terrestrial infrastructure costs are sufficiently high.

The complementary role of satellite to terrestrial networks is also constrained by physical capacity limits. Industry estimates show that the global satellite telecommunications market is approximately €20 billion, accounting for only 1% to 2% of the overall telecommunications market. Starlink has already encountered this constraint in Kenya: after available capacity was exhausted, the company temporarily suspended new residential orders in several counties. Amazon's Leo constellation will likewise need to deploy capacity where demand exists and supply it at pricing acceptable to operators, enterprises, and consumers.

Price is the primary barrier in the mass market. Based on World Bank data, Starlink's $30 monthly plan in 2023 accounted for approximately 22% of the average monthly gross national income (GNI) per capita in sub-Saharan Africa. By 2026, prices vary significantly across markets: Kenya offers a $10 capped plan, Ghana and Rwanda have unlimited plans at $28 to $34, and newer markets such as Côte d'Ivoire are priced at $50 or above. Kenya's $10 plan represents approximately 5.5% of monthly GNI per capita, while São Tomé and Príncipe's $61.70 plan in 2024 was equivalent to 26.7% of monthly GNI per capita. Amazon states that its standard Leo terminal manufacturing cost is below $400, leaving room for hardware pricing reductions, but it has not yet announced service pricing for Africa. If operators purchase satellite capacity wholesale for base station backhaul, users can benefit indirectly through mobile networks without needing to purchase terminals themselves.

Competition among satellite providers will ultimately be determined by who can better integrate into Africa's telecommunications networks. As low-Earth-orbit capacity increases, operators gain new options for sites where fiber or terrestrial links are too slow or too costly to deploy. Trabbia expects consolidation among satellite providers as the market matures, which could leave operators with fewer choices in capacity and pricing. For Amazon, whether its gateway, partnership, and wholesale model can deliver sufficient capacity at acceptable costs will determine Leo's actual position in Africa.