Internet Service Providers have raised concerns about the rising dominance of Starlink in the Nigerian Internet market.
According to them, Elon Musk’s owned Internet satellite company might lead to the extinction of local ISPs. They stated that there is a need for the telecom sector regulator to protect local players and create healthy competition.
Starlink was recently granted an operational licence by the Nigerian Communications Commission to provide Internet services to Nigerians.
The firm has since pegged its price at N19,260 per month for subscriptions and N274,098 for hardware. Because it leverages satellite connectivity, the firm is expected to serve underserved areas more although its current pricing suggests otherwise, according to experts.
They expressed these views during the third edition of the telecom sector sustainability forum which was organised by Business Remarks with the theme, ‘Starlink: A threat or prospect to the sustainability of Nigeria ISPs, MNOs, and Infracos.’
eStream Network Chief Executive Officer, Muyiwa Ogungboye, who was represented by the firm’s Chief Operating Officer, Mr Martins Akingba, noted that Starlink was not created for the country’s rural market.
According to him, the reason behind the Nigerian Communications Commission granting Starlink an operation licence, which was to provide high-speed Internet access to underserved and rural areas, might not come to fruition.
He said, “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 Head of Operations, Association of Licensed Telecoms Operators of Nigeria, Mr Gbolahan Awonuga, added that the licences given to Starlink might lead to the extinction of ISPs.
The Chief Executive Officer, Pan African Towers, Azeez Amida, who was represented by the firm’s General Counsel, Babatunde Olaniyan, said the wide adoption of 5G was likely to stall Starlink’s progress.
The Chief Executive Officer of VDT Communications, Mr Biodun Omoniyi, added, “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.”
