In a bid to deepen internet and broadband penetration in Nigeria, Starlink, a satellite internet constellation, has received approval to operate in the Nigerian market.
The satellite, operated by SpaceX, owned by the world’s former richest man Elon Musk aims to deliver a global broadband network, using a constellation of Low Earth Orbit to provide high-speed internet coverage with capacity to penetrate into rural and geographically isolated areas where internet connectivity is hardly achievable.
Low-earth orbit (LEO) satellites according to the World Economic Forum can help connect the unconnected and bridge the digital divide.
As the company prepares to launch in Nigeria, the satellite has gained approval to operate in the Nigerian market on May 27, 2022.
As of July 24, 2022, SpaceX launched 53 satellites in what was the 33rd Starlink launch of 2022. This follows a successful launch on July 22, 2022, in which 46 Starlink satellites were sent into orbit. So far, the company has launched almost 3,000 satellites in low Earth orbit.
Accessing the already existing Satellite in Nigeria, expert in the telecom sector shared their view on Musk Starlink
In 2007, Nigeria launched its first communication satellite NIGCOMSAT-1, built by a Chinese team and launched from a Chinese pad. NIGCOMSAT-1 was launched to provide phone, broadband Internet and broadcasting services in Africa’s most populous country, but was lost in space a year later, according to research.
In 2011, Nigeria also launched the NigeriaSat-2 and Nigeriasat-x into Orbit under President Goodluck Jonathan.
The former president described these Satellites as another milestone in the nation’s effort to solve national problems through space technology.
Ajibola Olude, secretary, Association of telecommunication companies of Nigeria (ATCON) said that the performance of these existing satellites especially NIGCOMSAT-1 has been limited due to negligence from the government.
“There are existing satellites in Nigeria, but the one of Nigcomsat hasn’t really been effective because it doesn’t have the necessary backing by the government and it is not adequately protected by the government. It doesn’t enjoy the monopoly privilege because the sector is driven by the demand and supply forces of the market,” Olude said.
Nonetheless, the ATCON secretary disclosed that Starlink will be positioned to serve both public, corporate organisations and the retail market, a feature which makes it totally different from already existing satellites in Nigeria.
He said, “There are other satellite companies. The only difference is that they are going to serve the retail market, and corporate organization. However the previous satellite in Nigeria concentrated on selling capacity to our members.”
What Starlink could mean to Nigeria
The launch of Starlink in Nigeria according to industry experts could mean a lot for the country in the area of broadband penetration, Job creation, increased investment and revenue generation.
“Definitely, it will help those in the rural area where the likes of MTN and other telcos network don’t have good presence. Satellites can cover those areas telcos cannot penetrate. With these Elon Musk satellites, rural areas will have the opportunity of using internet connections. And it is going to drive broadband in a way whereby underserved areas can now have full access to internet connections.
“Also, it will increase investment in the sector. The Government will get more tax revenue from it, generate more employment and will have some good effects on the economy,” Olude added.
Meanwhile, before the launch of Starlink internet service in Nigeria, MTN and 9mobile are both reported to have lost over 1.37 million data users, after Starlink revealed its intention to invest in the Nigerian internet service market.
Some of the local operators who would not want to be mentioned said part of their end-of-year strategy is studying how Starlink plans to disrupt the Nigerian market, given that satellites have the ability to penetrate into the rural areas where many of the competitors currently have little or no significant presence.
However, Nigerians willing to subscribe to Elon Musk’s Starlink internet service will have to pay $600 to acquire the setup hardware. In addition, the subscription to Starlink’s service in Nigeria will cost $43 per month, However, Starlink customers in some parts of the world like the United States pay between $110-$500 a month (for fast speeds of 50-500), depending on whether they want residential, RV, or business satellite internet.
Compared to Nigeria, where most internet users don’t spend up to that for the internet in a month, Starlinks will likely get low patronage unless it plans to be competitive in both pricing and services in Nigeria’s diverse market.
However, Starlink’s speed is its selling point and may attract many tech-savvy Nigerians.
Elon Musk, the owner of SpaceX, the company behind Starlink, had projected that the satellite internet speed would reach 300Mbps by 2021. This is not the case.
According to Ookla, which has been tracking the speed of Starlink, the median download speeds in the US dropped from 90.6Mbps to 62.5Mbps between the first and second quarter of 2022. Starlink’s median upload speeds in the US dropped from 9.3Mbps to 7.2Mbps in the same timeframe. Ookla also found that Starlink speeds decreased in every country it surveyed over the past year as more users signed up for the service. Starlink hit 1 million users globally in December.
SpaceX says it will need to increase the number of satellites it currently owns to boost speed. SpaceX started launching Starlink satellites in 2019 and as of September 2022 has launched more than 3,000 satellites into low-Earth orbit. On December 1, SpaceX got approval from the FCC to move forward with launching up to 7,500 next-generation satellites in its Starlink internet network.
Nigeria View on Starlink
Some Nigerians have expressed concerns that the high cost of acquiring Starlink’s hardware as “Too high”. As Nigerians can only pay for the hardware and subscription in dollars, while most Nigerian banks have suspended dollar transactions on naira cards.
A Twitter handle identified as Ulasi Arinze said “Nigerians really want Starlink internet but can’t pre-order because the pre-order is in USD and not in Naira.”
Love Joshua said “Most people who need and use Starlink are people who are already well vast in broadband tech and already have dollar accounts and or earn in dollars. Starlink is broadband, not mobile internet,” he said.
There is a yearning for high-speed internet in Nigeria which SpaceX Starlink offers, although The cost of the service is beyond the reach of the average Nigerian. The buying population is there to enable you to recoup your investments and make massive profits, a Twitter user identified as Iyene Paul noted.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
