Telecommunication companies in Nigeria are increasingly partnering with satellite providers like Starlink to expand internet access to rural areas, which are typically challenging to reach with traditional infrastructure such as towers and base stations.
According to the Nigerian Communications Commission (NCC), 27 million Nigerians, mainly in rural areas, lack access to telecom services. The country’s broadband penetration stood at 41.56 percent in September. The Federal Government also recently revealed that about 301 local government areas have no internet access.
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GSMA, the global body for the telecom industry, revealed in its ‘ The Mobile Economy Sub-Saharan Africa 2024 ‘ that, as of 2023, around 13 percent of the population in Nigeria and across Sub-Saharan Africa were not covered by mobile broadband network.
To address this gap, telecom operators are leveraging partnerships with satellite and other non-terrestrial networks (NTNs) to overcome the limitations of rural connectivity.
Satellites, particularly Low Earth Orbit (LEO) models, are known for providing high-speed internet even in areas where deploying terrestrial infrastructure is expensive or impractical. The prominence of satellite connectivity in Nigeria and across Africa has surged with the introduction of services like Elon Musk’s Starlink, which has sold out in certain parts of the country.
GSMA noted that LEO satellites and High-Altitude Platform Systems (HAPS) have gained traction due to significant investments and technological advancements, which improve their scalability and cost-effectiveness. These technologies are particularly suited to connecting remote areas where traditional networks are costly.
Key Partnerships
Some of these partnerships include the one between Airtel Nigeria and Eutelsat OneWeb. This partnership will bring high-speed internet to remote areas and is part of a broader deal between Airtel Africa and OneWeb, signed in November 2022.
MTN has collaborated with Omnispace, OneWeb, Starlink, Lynk Global, and AST SpaceMobile to trial various solutions that aim to increase connectivity in rural areas.
“To keep customers and businesses connected at all times, we are going to have to embrace satellite as an additional technology form,” said Ralph Mupita, MTN group chief executive officer.
Africa Mobile Networks (AMN) has also partnered with Starlink to provide backhaul for its base stations in rural communities. Initial deployment took place in Nigeria in April 2024.
In addition to private companies, the government, through the NCC, intends to expand telecom access to 80 percent of rural areas by 2027, up from 40 percent currently. The commission aims to leverage satellite solutions through NigComSat or private operators, GSMA noted.
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GSMA stated that satellites and NTN offer a connectivity pathway to new customers in underserved and remote areas. However, it noted that the availability of compatible devices will affect the take-up of satellite-enabled services.
When they eventually become more mainstream, GSMA Intelligence estimates that telcos across Sub-Saharan Africa will unlock a revenue opportunity of more than $30 billion by 2035.
Despite the potential of satellite technology, experts believe it is only a stopgap as fibre optic networks remain critical for long-term connectivity. Nigeria is addressing its 90,000 km fibre optic gap through a $2 billion special-purpose vehicle (SPV). This initiative aims to expand the country’s fibre network from 35,000 km to 125,000 km.
The Ministry of Communications, Innovation and Digital Economy has pointed out that poor returns on investment discourage telcos from deploying infrastructure in rural areas, where internet usage is often low. However, satellite partnerships reduce deployment costs, making such ventures more commercially viable.
Bosun Tijani, minister of communications, said, “By laying this extensive fibre network, we aim to enable fibre-to-base-station connections.”
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