Earlier in March, we talked about the negligence of the African market by Satellite Internet providers. Well, two months later, as against earlier reports that Starlinks was meant to debut in South Africa first, rather, the Satellite Internet giants got the go ahead to launch into the African market by Nigeria and Mozambique. Nigeria is the biggest economy in Africa and also the most populous African country and hence, leads the market in West Africa, while Mozambique is a Southern African country with a lean economy. So, what is the fate of traditional ISPs in the face of Starlinks debut and the competition it will bring?
We will treat this development in regards to the Nigeria consumers and try to discuss how it will affect the traditional internet market of a country of more than 200 million people.
About 35% of the Nigeria population use the internet, this is approximately 105 million people. Now that is a huge market for any internet venture. Yet, the sad thing is that 60% of these users live below poverty standards. Most phone users do not even have the second value cost of their phone in the bank.
Despite this, Internet service providers run a rather non-competitive market as the cost of data is almost the same across the different service providers. With the introduction of Starlinks, we will see a correction in data charges as these Internet service providers will struggle to retain their customers. Here are the predicted adjustments that the introduction of Starlinks Satellite Internet will bring to the Nigeria market.
- Absolute abandonment of traditional Internet service providers by major organizations and entities. These institutions include banks, financial entities, government owned organizations, high security infrastructures and the rich and middle classes. This abandonment will be followed by migration to the use of Satellite Internet. This development is because of Satellite Internet has a higher security than the traditional internet. Also, the satellite internet will be unlimited at a cost of less than $2500/ 1.2 million Naira per year or about 350 thousand Naira at first installation and then 60 thousand Naira Monthly subscription. The Starlinks business plan goes for $500/300 thousand per month and a $2500 installation price. (All estimates are at current exchange rate as of publishing time)
- The upspring of business data centers that will monetize the Starlinks technology and it’s numerous benefits. These data centers will offer paid times to customers for them to use their Starlinks WIFI.
- Starlinks installation will present a job opportunity for the tech savvy. This opportunity will enable them to make a living from installing Starlinks network dish for individual and industrial users.
- The traditional internet service will become something for the individuals or below average earners. Those that cannot afford Starlinks will continue to patronize the traditional providers.
What is the fate of traditional ISPs as Starlinks debuts in Nigeria?
Traditional ISPs will continue to serve the below average earners that cannot afford Starlinks. But we will surely witness a massive migration of major businesses, organizations and entities to Satellite internet as Starlinks is not just cheaper, but is also safer than the classic internet.Follow The Futurist For More