Worries For MTN, Other Telcos As Elon Musk Debuts Starlink In Nigeria

MTN Shareholders To Receive Incentive Shares

There are worries for MTN Nigeria, and other telecommunication giants, as billionaire and Twitter owner, Elon Musk secured the license to operate Starlink, a satellite internet constellation, in the country.

BizWatch Nigeria understands that SpaceX operates Starlink and has since been committed to providing satellite internet access coverage to 32 countries.

The tweet in which Musk made the disclosure of this development, read: “Starlink approved by Nigeria and Mozambique.”

Confirming this development, the Nigerian Communications Commission (NCC) stated that the company received two licences, which include the international gateway licence and Internet Service Provider (ISP) licence.

According to the regulator, Starlink, under the agreement, will be trading as Starlink Internet Services Nigeria Ltd.

NCC said that while the international gateway licence has 10-year tenure, the ISP licence will last for five years. Although both licences take effect from May 2022 and may be renewed after the expiration.

Just like how you install your DSTV dish, Starlink, with its satellite connects you to the internet.

Amongst other things, Starlink promises delivery of “high-speed broadband internet to locations where access has been unreliable or completely unavailable”. Although it only works for homes and not mobile, that is in view.

Should MTN and other Nigerian telcos be worried?

While this is good news for Nigerians considering the poor internet services often experienced by many people, it appears like MTN and other telcos in the country, now have a strong competitor.

Findings by our correspondent revealed that among the major telcos in Nigeria, MTN leads with 200 Mbps in terms of quality internet experience. But with an offering of 300Mbps, it appears like Starlink stands a better chance to become the market leader in a short time.

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