News Digital

The Economics of Connectivity: Can Shared Satellite Wi-Fi Narrow Africa’s Digital Divide?

The Economics of Connectivity: Can Shared Satellite Wi-Fi Narrow Africa’s Digital Divide?
Friday, 27 February 2026 11:25
  • Africa internet penetration at 36%; 900 million offline
  • Community satellite Wi-Fi expands access in rural areas
  • Shared networks cut data costs below affordability threshold

Internet access in Africa is improving but remains deeply unequal, according to the International Telecommunication Union. About 36% of the continent’s population was connected to the internet in 2025, compared with nearly 74% globally. At the same time, almost 900 million people remain offline, mainly in rural areas.

Community satellite Wi-Fi is gaining traction as a way to address the structural limits of terrestrial infrastructure. It is easier to deploy and less dependent on physical networks. It is emerging as a solution that can extend connectivity quickly in underserved areas while reshaping the economics of local networks.

Community Wi-Fi relies on a decentralized setup in which a main connection feeds a local network of shared access points installed within a defined area. The model scales up when it is backed by a satellite link. A single terminal can cover up to 200 meters and serve up to 40 simultaneous users.

Contrary to popular belief, access is generally not free. Users buy packages tailored to their needs, including data volume, duration or service level, through local platforms or community resellers. This approach pools bandwidth costs while providing a revenue base to operate the network.

Technically, a shared satellite link typically provides between 50 and 100 Mbps of capacity. Latency ranges from 20 to 50 milliseconds for low Earth orbit constellations, compared with more than 600 milliseconds for traditional geostationary satellites. A satellite user terminal generally costs between 300 and 600 dollars, excluding the monthly subscription. That subscription ranges from 20 to 100 dollars depending on performance and market conditions.

A solution adapted to infrastructure constraints

Interest in satellite connectivity stems mainly from its ability to bypass the limits of terrestrial networks. Expanding fiber remains costly and complex in many African regions. Deployment in rural areas can cost between 5,000 and 15,000 dollars per kilometer depending on terrain and security conditions. In this context, satellite backhaul enables rapid rollout regardless of terrain, population density or the continuity of physical infrastructure.

That momentum has accelerated with the arrival of new satellite operators and the diversification of distribution models. Providers such as Starlink, Eutelsat Group, OneWeb, YahClick, Viasat and Avanti Communications currently supply satellite capacity that African operators, NGOs and technical integrators use as local connectivity backbones. Regional players such as Liquid Intelligent Technologies and Paratus Group are also developing hybrid models combining fiber and satellite to feed community networks.

In this setup, a satellite does not replace terrestrial infrastructure. Instead, it changes the cost structure by reducing the marginal cost of extending connectivity.

The main advantage of community satellite Wi-Fi is its ability to lower the real cost of access in areas with few alternatives. Across the continent, 1 GB of mobile data represents about 2.4% of monthly income on average, which is above the 2% affordability threshold. By sharing bandwidth across multiple users, community networks can reduce that effective cost to below 1% of monthly income in some rural settings.

Beyond individual access, these networks can help develop local digital activity. They support the digitization of public services and help integrate peripheral areas into the digital economy. The expansion of mobile internet could generate up to 795 billion dollars in economic contribution in Africa by 2030 if access continues to broaden, according to the GSMA.

Persistent challenges around viability and regulation

Despite their potential, community satellite networks continue to face structural constraints. Satellite capacity is generally more expensive than terrestrial infrastructure where the latter exists, which requires hybrid models that combine local pricing, institutional partnerships and complementary financing.

Regulatory frameworks are another key factor. Licensing, spectrum management, digital sovereignty requirements and satellite service regulation directly shape how quickly these solutions can expand. Finally, operations and maintenance require specialized skills that remain scarce in several target regions.

Community Wi-Fi was long viewed as a fragile local solution, but it is evolving with satellite integration. By improving deployment flexibility, capacity options and pricing models, satellite connectivity is helping community networks become digital infrastructure better aligned with Africa’s territorial realities.

Satellite is no longer just an access tool. It is increasingly a lever for optimizing local connectivity models and bringing the internet sustainably closer to populations and economic activity that have remained beyond its reach.

Samira Njoya

On the same topic
Africa internet penetration at 36%; 900 million offline Community satellite Wi-Fi expands access in rural areas Shared networks cut data costs...
Axian secures digital finance license in Comoros New entity to offer mobile nano, micro-loans Banking rate 39%; inclusion seen reaching 75% by...
Pupils to receive unique school identification numbers Program aims to modernize education data management Guinea’s Ministry of National Education...
Amazon begins talks with Kenya on low-Earth orbit satellite broadband Kenya’s digital market is large but internet access remains...
Most Read
01

ECOWAS central bank governors reaffirm a 2027 target for launching the Eco. Nigeria signals...

ECOWAS Eco Currency May Launch Without WAEMU in 2027 Push
02

Algeria plans to launch construction of the $13 billion Trans-Saharan Gas Pipeline (TSGP) a...

Algeria–Morocco: Will the Gas Pipeline Duel Take Place? (Editorial)
03

Kenya raised $2.25B via dual-tranche Eurobonds to buy back 2028/2032 debt, luring investors w...

Africa’s Comeback on International Market: Kenya Adds-up to The 2026 Wave of Sovereign Issuances
04

Dangote to list $20-25 billion refinery within five months NNPC holds 7.25% stake; dividends...

Dangote Sets IPO Timeline for Its $20B+ Nigerian Refinery, Eyes Retail Investors
05

Siguiri mine produced 289,000 ounces in 2025, up 6% Fourth-quarter output rose 15%, boosting annu...

Guinea's Largest Gold Mine Records 6% Output Rise in 2025
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.