GEO operators need to adopt new pricing and business models as Starlink disrupts the backhaul market

Starlink is altering the competitive environment in cellular backhaul; it is actively expanding its services in this market and is driving capacity prices down. The number of long-term agreements between Starlink and mobile network operators (MNOs) is increasing. This is prompting traditional GEO satellite operators to adapt their pricing and adopt new business models to compete. 

Starlink is rolling out its initial deployments in backhaul. Africa Mobile Networks (AMN) deployed its first base station backhauled via Starlink in Nigeria in April 2024. As more supply becomes available and partnerships with MNOs are established, non-GEO players will transform the satellite backhaul market. Analysys Mason recently published the Wireless backhaul and trunking via satellite, 18th edition report in the Satellite Strategies for Telcos programme, which forecasts that non-GEO cellular backhaul solutions will generate more than USD2 billion in revenue in 2033, gradually capturing a larger share of the market revenue from only 5% in 2023 to 44% in 2033.