Universal Service Funds (USFs) rest on a simple arrangement. Licensed telecom operators pay a percentage of their revenue into a central fund, which finances connectivity in remote, low-density areas. The model was designed around operators with ground infrastructure, local spectrum and domestic revenue.

Low Earth Orbit (LEO) satellite providers deliver broadband from space with a smaller ground presence. That lets them serve enterprise and rural customers without building towers or laying fiber. It also raises a question about how they fit into licensing and fund contribution rules written for terrestrial networks.

The sector involved is large. According to GSMA’s Mobile Economy Africa 2026 , the mobile ecosystem supported around 13 million jobs in 2025 (10 million direct, 3 million indirect), and taxes on the sector reached $45 billion, equal to 11% of total tax revenue in the region. Operators are projected to invest $76 billion in network capex between 2025 and 2030.

This edition of #TechTalkThursday looks at how terrestrial and LEO operators are regulated, how three markets are adjusting their rules, and how USFs are being discussed in a multi-orbit setting.

Different Operators, Different Rules

LEO satellite broadband has grown quickly across Africa. In Nigeria, Starlink is the second-largest internet service provider by subscribers. At the end of the second quarter of 2026 it had 98,642 subscribers, behind Spectranet’s 111,384 [LINK: NCC ISP subscriber data]. In Zimbabwe, the regulator POTRAZ recorded 86,488 VSAT subscriptions in the first quarter of 2026, the category that includes Starlink and a record for the country [LINK: POTRAZ Q1 2026 sector report].

Terrestrial mobile network operators (MNOs) typically acquire spectrum, build towers, pay right-of-way fees and contribute to national USFs. Contribution rates vary by country. Zimbabwe, for example, raised its USF contribution from 0.5% to 1.5% of gross annual turnover. Satellite providers in many markets enter through landing-rights permits or general internet service provider licences. A report by the Africa CEO Forum and Askya Investment Partners describes these as lighter requirements and argues that offshore LEO operators are winning high-value customers without carrying the same licence, tax and infrastructure costs [LINK: Africa CEO Forum x Askya report]. The report also notes that Starlink has authorisation in at least 25 African countries.

Operators and satellite providers both point to the other side of the picture. Satellite services reach places where terrestrial networks are costly to build, and several governments are using them for public connectivity programmes.

How Revenue Shifts Could Affect Rural Networks

In many countries, operator contributions to USFs are calculated as a percentage of revenue. If higher-paying rural and enterprise customers, such as agricultural estates, mines, lodges and remote government offices, move from terrestrial operators to satellite, those operators could report lower revenue. That could reduce what they contribute to the fund. It could also affect how operators weigh the cost of keeping rural cell sites running.

Operators describe this mainly as a question of regulation rather than opposition to satellite technology.

“The way to go with all disruptive technologies, satellite is not an exception, is to find a way of partnering. MTN is in partnership with all of them. We need to do what we need to do with the investment that we put in, but at the same time we should also take advantage of some of these emerging technologies. MTN does not really see the emerging technologies as threats. All we are asking for is regulation that is in tune and in line with the evolution of technology.”

– Ebenezer Asante, Senior Vice President, Southern and East Africa, Ghana and Sudan Regions, MTN Group, speaking to TechAfrica News at the Africa CEO Forum 2026 

Margin pressure is a separate factor for operators deciding where to invest.

“Despite the growth of the number of subscribers, the average price that regular people are ready to pay for a commodity service is not increasing; it is decreasing. At the same time, operators must invest a lot in capacity, in throughput, and in network quality. And this is a big challenge: how to keep the network up to date, how to deploy new technology, and keep acceptable prices for subscribers.”

– Vladimir Freinkman, Vice President of Marketing and Business Development, Protei  

 

Satellite in the Rural Backhaul Stack

Operators also use satellite as a backhaul link, which carries traffic from a cell site to the wider network. In hard-to-reach terrain, laying fiber or installing multi-hop microwave links can be costly, and LEO backhaul is one alternative being tested.

In September 2026, NuRAN Wireless announced a pilot with Infratel at one rural site in Nigeria to evaluate Starlink LEO backhaul. The pilot will assess throughput, uptime and cost per unit of capacity. Results have not been published.

Satellite vendors describe multi-orbit networks as complementary to terrestrial ones.

“Whether it’s standard data, solutions for a mine, a school, or government applications like universal service funds and social responsibility projects, this is where we play a strong role and provide effective services. The design and innovation in this space give us the opportunity to build networks differently, creating both technological and commercial impact that will sustain these networks going forward.”

-Hans Geldenhuys, Director, Africa, SES  

Speaking on a TechAfrica News Podcast, Omar Diab, Regional Vice President of Sales for the Middle East and Africa at ST Engineering iDirect, described how multi-orbit models sit alongside existing networks:

“The penetration of LEOs has strengthened our position and highlighted the roles of each operator or constellation in the ecosystem. We see the complement between new market entrants and the traditional model, like terrestrial fiber and evolving GEOs driving high throughput. It all contributes to delivering a complete ecosystem, with multi-orbit playing an important role.”

-Omar Diab, Regional Vice President of Sales for the Middle East and Africa, ST Engineering iDirect  

 

Three Approaches Across the Region

Regulators are using different tools to balance market entry, contribution and coverage.

Senegal: court review. Sonatel challenged the authorisation granted to Starlink Senegal, citing its own licence fees, USF contributions and obligations as a first-tier licence holder. On 7 September 2026, the Supreme Court provisionally suspended the authorisation while it examines the appeal. The suspension is temporary and does not settle the case. The authorisation had been linked to a government plan to buy 5,000 Starlink kits for community wifi, unserved areas and schools.

Kenya: fee restructuring. The Communications Authority replaced the Satellite Landing Rights licence with an International Gateway Systems and Services licence under its Revised Telecommunications Market Structure for 2026. The 15-year licence costs a minimum of KES 15 million, about $115,000, and up to $345,000 for 25 years, compared with about $12,500 before. Licensees also pay an annual levy of 0.4% of gross turnover, with a minimum of KES 4 million. A separate Landing Rights Authorisation applies to operators transmitting signals into the country.

Nigeria: licensing and fund eligibility. The Nigerian Communications Commission (NCC) granted Amazon’s Project Kuiper (now Amazon LEO) a licence in January 2026, alongside other satellite entrants. NCC officials have also signalled plans to use part of the Universal Service Provision Fund to support satellite broadband operators in unserved and underserved areas, with incentives tied to coverage in those locations.

USFs in a Multi-Orbit Setting

The aim of universal service policy is unchanged: reliable connectivity for remote and lower-density communities. What is under discussion is how funds are collected and spent.

GSMA’s report on universal service funds in Africa  lists service neutrality among its principles for reform and recommends evidence-based contribution rates. The Global Satellite Operators’ Association (GSOA) submitted a white paper, Satellite Solutions for Universal Service , to ITU-D. It argues that governments and regulators have an important role in embracing satellite as part of the connectivity mix for unserved regions.

Kenya, Senegal and Nigeria are using fee alignment, court review and fund eligibility. Each is at an early stage, and the outcomes are not yet known. Regulators are weighing two aims at once: contributions that are fair across operators, and faster coverage for people who are still unconnected.