Speaking to TechCentral after the release of the group\u2019s interim results on Tuesday, Shameel Joosub, Vodacom Group chief executive officer, said the company was targeting a satellite-to-phone launch in South Africa towards the end of 2027 and would more than likely partner with AST SpaceMobile.<\/p>\n
The technology connects conventional smartphones directly to low-Earth orbit satellites, effectively extending mobile network coverage to areas where traditional terrestrial infrastructure is unavailable or economically difficult to deploy.\n<\/p>\n
Vodafone Group, Vodacom\u2019s UK parent, has backed AST SpaceMobile since 2020 and previously used its satellite infrastructure for what it described as the world\u2019s first satellite video call using a standard smartphone in January 2025.\n<\/p>\n
The proposed entry comes as competition in Africa\u2019s satellite connectivity market intensifies. Airtel Africa activated a commercial Starlink Mobile service in the Democratic Republic of Congo in August, enabling text messaging and limited data services, including WhatsApp, although voice calling is not yet supported.\n<\/p>\n
MTN has also tested satellite direct-to-mobile connectivity in South Africa through Lynk Global, while Starlink is conducting direct-to-mobile trials in Africa.\n<\/p>\n
Vodacom already has a commercial relationship with Starlink, but Joosub clarified that the agreement covers broadband connectivity rather than direct-to-mobile services. The partnership involves satellite backhaul for rural network sites and the resale of Starlink equipment to business customers. Vodacom has launched the service in the DRC, Lesotho and Mozambique.<\/p>\n
The satellite strategy is also influencing Vodacom\u2019s position on South Africa\u2019s ageing mobile infrastructure. Joosub believes the country needs to accelerate the retirement of second-generation (2G) and third-generation (3G) networks to release spectrum for more advanced services.\n<\/p>\n
He proposed stopping the importation and connection of new 2G and 3G devices before allowing a two-year transition period for existing users to migrate to compatible smartphones.\n<\/p>\n
Beyond satellite connectivity, retiring 3G networks would free frequencies for 4G services and potentially reduce infrastructure costs. Joosub explained that 3G cells become smaller as traffic increases, requiring operators to deploy more closely spaced sites, whereas 4G cells can maintain their coverage footprint more efficiently.\n<\/p>\n
However, South Africa has no formal government deadline for the shutdown. The communications ministry abandoned the previous administration\u2019s December 2027 deadline in July 2025, leaving the transition largely to market forces and coordination among operators.\n<\/p>\n
Vodacom\u2019s infrastructure ambitions extend into artificial intelligence, where it sees an opportunity to position itself as a provider of the computing capacity and data infrastructure required by businesses, governments and cloud service providers.<\/p>\n
In Egypt, Vodafone Egypt, controlled by Vodacom, is partnering with Elsewedy Electric and Cassava Technologies to develop what the company describes as the country\u2019s first sovereign AI data centre.\n<\/p>\n
Joosub disclosed that the project would cost approximately $1 billion over the next couple of years, with Vodafone Egypt expected to own about 30 percent of the venture. Investment will be deployed in phases as demand develops rather than committed upfront.\n<\/p>\n
He identified Egypt, South Africa and Kenya as the three major markets where Vodacom hopes to establish regional AI data centre hubs, although planning for the latter two remains at an early stage.\n<\/p>\n
The emphasis on sovereign AI infrastructure reflects growing demand for local computing capacity, data control and cloud services as artificial intelligence adoption expands across African economies. It also creates an opportunity for telecommunications operators to monetise their existing networks, enterprise relationships and infrastructure capabilities beyond voice and data subscriptions.\n<\/p>\n
However, the financial demands of building AI-ready facilities, particularly those requiring reliable electricity, advanced cooling systems and high-performance computing equipment, could complicate Vodacom\u2019s expansion plans.<\/p>\n
Joosub acknowledged the importance of securing partners to share investment costs and provide technical expertise, noting that the group was increasingly considering co-build arrangements and off-balance-sheet financing for infrastructure such as fibre, towers and data centres.\n<\/p>\n
He also ruled out major mergers and acquisitions in the immediate future, saying the group was not looking at significant transactions, although smaller opportunities, particularly in financial services, could still emerge.\n<\/p>\n
Read also:\u00a0Fake degrees: Nigerians demand sanctions on defaulting universities as FG plans NYSC test<\/a>\n<\/p>\n The funding constraints highlight a strategic balancing act for Vodacom. Its satellite and AI ambitions could create new revenue streams and strengthen its competitive position, but the group must pursue these opportunities without placing additional pressure on a balance sheet already absorbing the cost of its Safaricom investment.\n<\/p>\n For Africa\u2019s telecommunications industry, the emerging contest is no longer limited to mobile subscriptions, network coverage and data prices. Satellite connectivity and AI infrastructure are increasingly becoming strategic battlegrounds, with operators competing to control the networks and computing capacity that will support the continent\u2019s next generation of digital services.<\/p>\n Vodacom\u2019s challenge will be converting these investments into commercially sustainable businesses while managing the debt accumulated from its expansion strategy.<\/p>\n Royal Ibeh is a senior journalist with years of experience reporting on Nigeria\u2019s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n Source: <\/p>\n Vodacom Group is accelerating its push into satellite connectivity and artificial intelligence infrastructure across Africa, betting on emerging digital services to drive its next phase of growth even as rising… <\/p>\n","protected":false},"author":1,"featured_media":14210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/14209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=14209"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/14209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media\/14210"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=14209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=14209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=14209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Related News<\/h4>\n<\/p><\/div>\n
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