Starlink competitors pursue African internet expansion

Spacecoin and the Midnight Foundation announced a partnership to develop an encrypted messaging system using satellite technology, aimed at preventing government-imposed internet blackouts like those witnessed in Uganda and Iran this month.

The collaboration seeks to create a peer-to-peer communications platform that operates independently of traditional internet infrastructure, which governments can easily disable during elections or protests. The system would combine Spacecoin’s low-Earth orbit satellites with Midnight’s zero-knowledge proof encryption technology.

Recent Blackouts Highlight Need

The partnership comes as internet shutdowns increasingly threaten democratic processes worldwide. Uganda imposed a nationwide internet blackout ahead of its Jan. 15 election, cutting off millions from vital information during the voting process. The shutdown lasted five days before partial restoration.

In Iran, authorities implemented a near-total internet shutdown beginning Jan. 8 as nationwide protests intensified. Human rights organizations report the blackout was used to conceal a violent crackdown on demonstrators, with death tolls difficult to verify due to the communications blackout.

Privacy Beyond Content Encryption

Unlike existing encrypted messaging services, the proposed platform would protect both message content and metadata — information about who communicates with whom and when. Popular services like WhatsApp encrypt message content but collect extensive metadata on their more than 3 billion users. Signal requires phone numbers, creating links between identity and usage patterns.

“Privacy is not a feature or a privilege — it is a fundamental human right,” said Fahmi Syed, president of the Midnight Foundation, in a statement. “If the underlying infrastructure itself is exploitable, true privacy does not exist.”

Satellite Network Bypasses Traditional Infrastructure

Spacecoin operates what it describes as the world’s first decentralized satellite internet network, using low-Earth orbit satellites and blockchain technology. The company successfully launched its first satellite in December 2024 and plans additional launches in 2025.

The network aims to provide censorship-resistant internet access to underserved regions, particularly in Africa where more than 40% of the population remains offline. By operating through satellites rather than ground-based infrastructure, the system could maintain connectivity even when governments order traditional internet service providers to shut down.

Competition in African Satellite Market

The partnership enters a crowded field of satellite internet providers targeting Africa. Amazon’s Project Kuiper received licensing approval to operate in Nigeria starting in 2026, setting up direct competition with Elon Musk’s Starlink.

Traditional telecom operators are responding to satellite competition. Airtel Africa and Vodacom recently struck partnerships with Starlink to integrate satellite technology into their services, recognizing the economic challenges of deploying ground infrastructure in remote areas.

Broader Applications Planned

“Private messaging solves one problem. But the infrastructure we’re exploring to build together solves many,” said Tae Oh, founder of Spacecoin. “The same stack that protects a message protects a financial transaction or a medical consultation.”

Beyond messaging, the partners envision applications including private financial transactions over satellite networks, confidential healthcare communications in remote regions, and secure coordination tools for journalists and activists operating in restrictive environments.

The system would use smart contracts to coordinate the satellite network, eliminating centralized control points that could be compromised or shut down by authorities. Users would prove authorization to communicate without revealing their identity, location or communication patterns.

Implementation Challenges Ahead

The partnership remains in exploratory stages, with no announced timeline for commercial deployment. Success will depend on regulatory approval in target markets, user adoption of new technology, and the ability to scale satellite capacity to meet demand.

Internet shutdowns impose significant economic costs. Iran’s communications minister acknowledged the country’s recent shutdown costs approximately $35.7 million daily. Uganda’s 2021 election blackout reportedly caused billions of Ugandan shillings in losses.

As governments increasingly use internet restrictions to control information during critical moments, the race to develop censorship-resistant communications infrastructure is intensifying across the satellite industry.