Stakeholders Fret over Perceived Starlink’s Dominance of Nigeria’s ISP Market

Emma Okonji

Some stakeholders in the telecommunications industry have expressed concerns over the perceived dominance of Starlink in Nigeria’s Internet Service Providers (ISPs) market.

Starlink is a satellite internet service provider, with presence in Nigeria, whose ownership is linked to one of the world’s richest men, Elon Musk who recently bought over Twitter for $44 billion.

The stakeholders expressed their worries at the Telecom Sector Sustainability Forum (TSSF 3.0), organised recently in Lagos, by Business Remarks, with the theme: “Starlink: A Threat or Prospect to the Sustainability of Nigeria ISPs, MNOs and Infracos.”

Acknowledging the fact that the emergence of Starlink re-introduced satellite internet technology to the market space, Nigeria ICT stakeholders, however noted that the telecoms regulator needed to address the business model to protect local players and create healthy competition.

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 service to Nigeria, 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 (ISPs), increasing the number of ISPs issued licenses to operate in Nigeria to 255 as of September 2022, up from the 187 that was reported in December 2021.

Speaking at TSSF 3.0 Forum, the Chief Executive Officer, eStream Network Mr. Muyiwa Ogungboye, who was represented by the Company’s Chief Operating Officer, Mr. Martins Akingba, said Starlink could be a threat to the local ISP market in Nigeria.

“As a local ISP player, the advent of Starlink makes us question if the regulator is really careful of the investments made by players in this industry, because millions of naira have already been invested in infrastructure even in the underserved areas,” Ogungboye said.

Also speaking, the Chief Executive Officer, Pan African Towers, Azeez Amida, who was also represented by the General Counsel, Babatunde Olaniyan, said Starlink might both be a threat and a prospect but added that the wide adoption of the 5G network in Nigeria would 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.

The Chief Executive Officer, Equinoxcore Technology, Mr. Lanre Olanrewaju, spoke on the challenges that subscribers are facing such as loss of money, fraud, poor signal quality due to poor installation, data loss, and irregularity in the cost of gadgets.

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 nothing is done to checkmate it.

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 made 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 the regulatory safety might be weak, once there is no balancing game.

He also urged NCC to create guidelines to safeguard local players.

In her welcome address, the convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remark, stressed that given the internet’s increasingly important role as a communication tool, internet connectivity has become a vital component of daily lives, and many nations have embarked on ambitious projects to expand and improve access to the internet.