SpaceX's Starlink in Nigeria: What this means for telcos and ordinary Nigerians

Elon Musk stated in a tweet on Friday that Starlink, his space exploration company’s satellite internet service, has been licensed in Nigeria and Mozambique.

The Nigerian Communications Commission revealed that the service has secured two licenses to begin operations in the country, according to Nairametics.

The license Starlink Internet Services Nigeria Ltd. (its trading name) obtained falls under the Internet Service Provider (ISP) category and will be valid for ten years beginning in May 2022, according to media outlet. Other service providers such as telcos and private operators also fall under this category.

In May of 2021, Musk’s SpaceX sent representatives to the NCC to discuss the prospect of securing a license to operate Starlink in Nigeria.

Musk had tweeted on Tuesday of this week about the service launch in Africa saying that “Starlink will serve everywhere on Earth that we’re legally allowed to serve”

What does this mean for the Nigerian telecommunications industry?

Competition is crucial for efficient market operations in an emerging economy like Nigeria, as it stimulates innovation, productivity, and growth. Competition in the telecommunications industry, in particular, provides significant benefits to customers by fostering a range of choices, allowing subscribers to patronize telcos at rates that accurately represent demand and supply.

Hopefully, Starlink will provide the long-awaited competition to Nigerian telecoms MTN, Airtel, and Glo, which have been compelled to compete against one another despite their poor service. Subscribers who are unhappy with the low quality of service provided by any of the network providers now have an additional choice for better service.

However, there is one downside to this satellite internet constellation: Starlink is expensive for the average Nigerian. It costs about N 60,500 ($110) for preorder and N330,000 ($599) monthly for a full kit, which includes a terminal, mounting tripod, and Wi-Fi router. The full kit costs around N1.375 million ($2,500) and N275,000 ($500 ) per month for its premium service.

Too pricey: Is it worth it?

In March, SpaceX increased the prices for Starlink, including the cost of the hardware kit and the monthly service fee. Even for existing deposit holders, the price of the kit rose, but even higher for new orders.

While the Starlink internet service is a little out of reach for the average Nigerian, it is capable of delivering data faster than any other network. It has the ability to deliver low-latency data over long distances.

The present system, which has over 2,000 satellites and over 1,500 in operational orbit as of mid-January 2022, has the ability to sustain up to 4,408 satellites, nearly three times the current number.