By Khaly Diouf
Actor in the ecosystem
With the advent of the Pastef regime in Senegal, a new concept has emerged in the public debate: “The New Technological Deal”. Presented as both a growth factor and a sovereignty vector in the digital strategic sphere, this project places telecommunications at the heart of Senegal’s development strategy.
In this context, the arrival of a new actor in the telecommunication ecosystem is always considered a major event, especially when it comes to a global operator. All over the world, this type of entry is considered strategic. Its effects are deep, lasting and structuring. Because of its considerable socio-economic repercussions, such an operation requires solid background, rigorous preparation and, above all, serious work.
Starlink’s arrival in this ecosystem raises fundamental questions that deserve to be asked with clarity. The entry of an operator of this magnitude is not a simple miscellaneous fact. This is a choice supposed to translate the strategic vision of the regime into place within the framework of the New Technological Deal. This can be comparable to the discovery of a new oil field. To succeed, such a mutation requires rigour, transparency and strong guarantees for the future
A choice so much more important that it is not an exaggeration to compare it with the discovery of a gold mine, whose display requires rigour, transparency and strong guarantees for the future.
In some states, its contribution to social spending exceeds that of hydrocarbon, provided it is negotiated with the country’s interests at the forefront.
The lack of transparency
It’s important to note that at the time of preaching the “Jub, Jubal, Jubanti” philosophy of the Pastef leadership, the lack of transparency surrounding Elon Musk’s conditions of setting up Starlink in Senegal raises questions. The Senegalese people, on whose behalf the current regime is supposed to act, still ignore the nature of the contract signed with the state. Shadow areas remain:
Is this a real operator or a simple Internet access provider?
Is this a classic licence or an authorisation?
What is the actual amount of “entry ticket”?
What are the planned local investments and areas covered?
Senegal, through its Ministry of Communication, Telecommunications and Digital, has not made transparency a major concern in this matter, thereby feeding all kinds of speculation and many questions about the conditions for the issuance of the licence, as well as guarantees of subsequent security.
Historically, Senegal has always been able to value its licences in the sensitive field of telecommunications. Whether it is the renegotiation of Millicom/Sentel under Wade, or the 90 billion FCFA paid by Sudatel in 2007, the state has, in the past, known to impose conditions. Why does this tradition of transparency seem to be neglected today?
For more clarity, in July 1998, Senegal granted Millicom/Sentel (now Tigo, then Free, now Yas) a licence for US$120,000, or approximately FCFA 50 million. When he came to power, President Wade challenged the contract, deemed inadequate by international standards. By comparison, Cameroon had obtained FCFA 40 billion (US$98 million) for its licences during the same period, while Kenya had cashed out nearly FCFA 38 billion (US$94 million) from the operator Kencell, which became Airtel Kenya after several buybacks.
There is no doubt that for more than two decades, the telecommunications sector has been among the most dynamic segments of Senegal’s economy, prevailing with constantly evolving regulatory mechanisms. The ARTP, which is in charge of the regulation, has gradually learnt to build a demanding regulatory framework, in collaboration with operators. They have made significant investments, including the extension of their licences and the transition from 4G to 5G. Market leader Sonatel/Orange paid 34 billion FCFA for this transition. Actual “Yas”, through SAGA Holding Senegal, concluded an advancement with the state for an expected amount of 13.5 billion FCFA. To ensure transparency, a call for competition was launched on 31st May, 2023 to allow interested actors to bid.
Usually, the government publicly communicates the amounts paid by operators through chargebooks and contracts. Hence many questions about the lack of clear communication in the case of Starlink.
A colossus with no impact on the local economy
If satellite technology is an undeniable innovation, its economic model poses a problem. Unlike historic operators like Orange or Yas, Starlink generates very little local value. Some numbers to put things in perspective:
Contribution to GDP: Telecoms account for about 9% of Senegal’s GDP, almost double that of the extractive sector.
Tax revenue: The sector pays nearly 200 billion FCFA annually to the state, with forecasts of up to 400 billion for 2025.
Jobs and infrastructure: Where an actor like Sonatel invests massively in its fibre-optic-like infrastructure, generating nearly 93,000 jobs (direct and indirect), Starlink relies on infrastructure funded beyond our borders.
By adopting a model that plans for almost no local investment, estimated at less than 5% of current operators, Senegal risks weakening the pillars of its own digital economy.
Because beyond the issue of transparency and the lack of input on the local economic fabric, the arrival of Starlink poses another structural problem. It risks upsetting the balance of the ecosystem and creating a sustainable imbalance. Satellite technology is certainly an undeniable major innovation. But Starlink’s current sector organisation and economic model could create more challenges than solutions. The quality or power of the flow should not obscure the value created and redistributed locally. Starlink generates little local value.
Digital is a pillar of development, not only in terms of technical performance, but especially in its socio-economic impact on the national ecosystem. These performances depend mainly on operators like Orange, Yas and Expresso, within a structured, experienced and solid ecosystem. Such a strategic sector deserves to be protected and accompanied with discretion. However, Starlink has been repelled in several African countries for economic protectionism reasons, with its model not integrated into local economies.
In Senegal, Starlink had already attempted to deploy itself in 2023 but was recalled for non-compliance, including in the absence of a locally established legal entity. This poses a first break in balance with already established operators. The latter invest massively in infrastructure, research, employment and fibre optics.
As an example, Sonatel/Orange has invested more than 150 billion FCFA in recent years in the modernisation of its network. The Starlink model, based on an infrastructure developed and financed outside Senegal, does not plan for comparable local investments. A weakening of Sonatel/Orange, the central player of the national and sub-regional ecosystem, could have disastrous consequences for the national economy.
The challenge of sovereignty
Beyond the billions, it’s a question of digital sovereignty that arises. By entrusting some of our connectivity to a constellation of satellites completely out of national control, the state is exposing itself to major risks:
Personal data: What guarantee for the accommodation and protection of information of Senegalese?
Effective control: In the event of tension or crisis, Starlink has the technical power to suspend its service unilaterally, without the state having any real means of coercion. Other nations, concerned about their independence, have already declined this offer or imposed strict conditions, such as South Africa, which requires 30% local shareholding.
Several countries such as China, Russia or Iran have declined the Starlink offer in order to preserve control of their Internet. The very nature of the satellite model raises questions about data storage, protection of personal information and the state’s ability to exercise effective control.
The expected progress, so far as can be envisaged in this agreement, must not be at the expense of national security, much less weaken the guarantees that the operators present are entitled to, who have made significant financial efforts to honour their shares of the agreements binding them to the state from Senegal.
The success of the “New Technological Deal”, which is an aspiration that can only be attributed to, goes through protecting the local digital ecosystem, to ensure that every bit of data consumed, actually contributes to the economic and social development of Senegalese.
