The arrival of Starlink, a satellite internet constellation operated by SpaceX into Nigeria’s telecommunications space has continued to attract reactions from various stakeholders in the industry, especially Internet Services Providers space.
The latest of these reactions came from stakeholders who attended 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”, which was held in Lagos last week.
While some of these stakeholders believe that the arrival of Starlick will widen competition in the Nigerian internet market by disrupting the status quo, others argue that Starlink will possibly dominate the market. Thus, killing the indigenous Internet Service Providers (ISPs).
According to Muyiwa Ogungboye, Chief Executive Officer of eStream Network, Starlink can be a threat to the indigenous ISPs if the gaps found with the solutions are not treated.
Ogungboye, who was represented at the event by Mr. Martins Akingba, Chief Operating Officer of the company, explained that Starlink’s introduction is to provide high-speed internet access to underserved and rural areas in the country, but the solution will not serve the purpose as a lot of investments have already be made by indigenous players in this regards.
“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,” he argued.
He said Starlink is not designed for the Nigerian rural market, highlighting pricing and lack of local and after-sales support as part of the reasons. “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,” he noted.
Also speaking, 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.
The Chief Executive Officer, Equinoxcore Technology, Mr. Lanre Olanrewaju spoke on the challenges subscribers are facing such as loss of money, falling victim to fraud, poor signal quality due to poor installation, data loss, and irregularity in the cost of gadgets.
According to him, the lack of physical office and after-sales support is a major concern for users and this challenge will continue to persist if there are no proper regulations around this.
Lanre noted that the disruptive agenda might not be achieved. On contribution to the economy, he asked if the organisation pays VAT.
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 makes a case for affordable internet service for consumers.
In addition, the Executive Secretary of the Association of Telecommunications Companies of Nigeria (ACTON), Mr. Ajibola Olude stated that regulatory safety might be weak, once there is no balancing game.
He also urged NCC to create guidelines to safeguard local players, and edges on the value chain such as generating employment opportunities and restrictions in the rural areas.
Meanwhile, the Chief Executive Officer of VDT Communications, Mr. Biodun Omoniyi sees no threat with Starlink’s arrival into Nigeria’s ISP market, describing the solution as 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 the 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.
Although, he said being the first to launch is not really a big thing but is the industry, players and citizens are protected. Is the data accessible to the regulators, how do we do KYCs, and can the rural dwellers afford it, questions such as these need to be asked following the solution emergence in the Nigerian space.
Omoniyi charged the regulators to licence both the sellers, agents and providers to create a better ecosystem while encouraging operators to address their business models (pricing, positioning and support) to stay afloat and be profitable in the market.
Earlier in her welcome address, the Convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remarks stressed that given the internet’s increasingly important role as a communication tool, internet connectivity has become a vital component of daily life, and many nations have embarked on ambitious projects to expand and improve access to the internet.
“It is believed that the use of satellite technology in Nigeria dates back to the military era and also a known fact that satellites have played a fundamental role in providing connectivity. In the last few years, the space industry has seen a rapid increase in satellite launches.
“Although Nigeria is regarded as Africa’s fastest-growing telecommunications market, its broadband penetration is largely dependent on fibre connectivity,” she said.
She recalled that at the first edition of the telecoms sector Sustainability Forum, the Nigerian Communications Commission (NCC) noted that as a result of the challenges militating against ISPs, deliberate policies and regulations are being looked at in the Commission in ensuring that ISPs and other smaller players in the industry thrive.
Olanrewaju stated further that it is on this basis that stakeholders and experts were assembled to dissect this edition’s theme.
Recall, SpaceX’s satellite internet service, 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.
Starlink was included alongside 37 other Internet Service Providers, 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.