Starlink Will Threaten Local Internet Service Providers In Nigeria – Stakeholders

Stakeholders in the Nigerian telecommunications industry  have stated that, the business model of Starlink, SpaceX’s satellite internet service is a threat to local internet service providers in Nigeria.

They, therefore, called on the telecoms regulator to address the issue to protect local players and create healthy competition.

This is even as they warned that Starlink could dominate the Nigeria’s Internet Service Providers (ISPs) market, if Nigerian Communications Commission(NCC) do not intervene.

Starlink announced its availability in Nigeria, months after it signed an agreement with the Nigerian government to bring in its satellite-based internet coverage, thereby, making Nigeria the first African country to use satellite internet and 46th in the world.

The public believes that with the introduction of Elon Musk’s satellite internet service, Starlink will widen competition in the Nigerian internet market while disrupting the internet market. Starlink was included alongside 37 other Internet Service Providers(ISP), increasing the number of ISPs issued licenses to operate in Nigeria to 255 as of September 2022, up from the 187 reported in December 2021.

Stakeholders who spoke with LEADERSHIP at the Telecom Sector Sustainability Forum third edition (TSSF 3.0) organised by Business Remarks, with the  theme: “Starlink: A Threat or Prospect to the Sustainability of Nigeria ISPs, MNOs and Infracos” in Lagos, disclosed that contrary to popular opinion, Starlink has massively dominated the market.

eStream Network chief executive officer, Muyiwa Ogungboye, who was ably represented by the chief operating officer, Mr Martins Akingba stated that, Starlink can be a threat to the local ISPs if the gaps found with the solutions are not treated.

If the objective of the NCC with Starlink’s introduction is to provide high-speed internet access to underserved and rural areas in the country, this solution will not serve the purpose, Ogungboye said, while stating that Starlink is not designed for the Nigerian rural market.

Furthermore, the chief medical director said, ISPs served both the retail and the enterprise markets, adding that, “a lot of our enterprise market is already considering the solution but security is a major concern because they do not have an idea of how the traffic is being routed. As an ISPs local player, the advent of Starlink makes us question if the regulator is really careful of the investments made by players in this industry, millions of naira have already been invested in infrastructures even in the underserved areas.”

The chief executive officer, Pan African Towers, Azeez Amida, who was represented by the general counsel, Babatunde Olaniyan said, Starlink might both be a threat and a prospect but the wide adoption of the 5G network in Nigeria will pose a greater challenge to the solution.

On his part, the chief executive officer of VDT Communications, Mr Biodun Omoniyi encouraged local players not to see the solution as a threat because Starlink is a leo-satellite, not too far fetch from the satellite technology.

He posited that, as a disruptor, local players need to identify the gaps and fix them to have an edge over the solution.

“There will definitely be some adjustment in the market, and not a case of the winner takes all kind of situation. Some people will take up the solution, some will continue to rely on their mobile devices for internet access and others will be for fixed wireless access. If this happens, the consumers are provided with alternatives.” Omoniyi noted.

Expressing his concern, the head of operations, Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr Gbolahan Awonuga said, the licenses given to Starlink might lead to the extinction of ISPs and also the domination of the market space if not checkmate.

Awonuga urged NCC to create a level playing field for operators bringing to remembrance the extinction of CDMA in the Nigerian Telecoms market. He also make case for affordable internet service for consumers.

The executive secretary of the Association of Telecommunications Companies of Nigeria (ACTON), Mr Ajibola Olude, stated that, the regulatory safety might be weak, once there is no balancing game, while urging NCC to create guidelines to safeguard local players, edges on the value chain such as generating employment opportunities and restrictions in the rural areas.