Elon Musks’ Starlink Project Effect On Nigerian Founders
What is Starlink?
Starlink is wide-band internet access operated by SpaceX delivered through low earth orbital satellite(LEO). It is currently providing satellite internet access coverage to 32 countries.
Why is Starlink a Big Deal?
Starlink is a big deal because it solves the problem of access as well as the speed of internet services in Nigeria, especially in rural areas. A report by Data Reportal says that internet penetration in Nigeria stands at 51% as of January 2022. This means that 49% of Nigerians do not have internet access.
The low insight is a result of the infrastructure deficit in Nigeria. Internet access in Nigeria is mainly supplied through data sold by Global Service for Mobile Communication(GSM) the likes of MTN, GLO, and AIRTEL in Nigeria. There are not enough physical cell phone towers to beam data across Nigeria, especially in rural areas.
One of the very important advantages of Starlink is speed. According to research, the average mobile internet speed via cellular is 17.38Mbps, while fixed internet wireless connection is 10.06Mbps. Starlinks’ speed on the other hand is 104Mbps, which is 10 times faster. With faster internet services, more internet applications can become operational in Nigeria. Also, companies, where internet access is a crucial need, can run smoothly and effectively.
What effect would Starlink have on some specific sectors?
One major effect will be the fall in the prices of data in Nigeria. Although Starlink’s target is the rural/unserved internet area, its speed will make it a workable option for all Nigerians. Many startups in Lagos will gladly pay to access the internet at such speed. Fast wide-band internet access will significantly scale up all sectors in Nigeria, however, below are some of the sectors.
1. Health Care: High-speed internet creates access to telehealth services for preventive and critical care. Telehealth access in rural areas will help connect rural hospitals to academic medical centers or experienced doctors, surgeons, etc, in any place in the world. This will allow specialists to visit patients and their care providers without having to travel. It will also enable doctors and caregivers to follow up on their patients without the patient having to travel to the hospital. The healthcare sector can use the fast internet to add productivity improvements to Nigeria’s rural health delivery.
2. Education: According to the United Nations(UN), 89% of students in sub-Saharan Africa do not have access to an internet connection. Starlink can solve that by bringing internet access to the rural areas, and the ministry of education can perform remote learning. This in turn will help every student in that area to be informed and learn. By creating a data-driven school, both teachers and students can be monitored and scored on attendance and performance. This innovative use can only happen in a fast internet environment.
3.Agriculture: Agriculture is the mainstay of Nigeria’s economic growth, contributing more than 22% of GDP growth. An improved rural internet speed would increase crop yields as well as farm profits and cause a reduction in operating expenses. The majority of farmers do not have access to the internet at all. However, once Starlink has been launched at full capacity, there will be no need for farmers who currently don’t have access to high-speed internet or any internet at all will no longer have to rely on expensive and unreliable connections that limit their ability to connect with markets and access the weather data they desperately need daily to stay competitive.
Starlink’s power internet service in Nigeria’s food basket will enable farmers to have access to use smartphones, to get weather and agricultural pricing data also giving them wider access to both local and global markets. Commodity exchanges like comX by NGEX will be able to expand the “chain of custody” and verification of commodities from farm to the warehouse, derisking the commodity trades and allowing efficient collateralization. Faster internet access is critical to farm and rural economies.
Starlink may as well be too expensive for its ‘ideal’ rural consumers in Nigeria. It cost about #60,500 ($110) to preorder and #330,000 ($599) monthly for a full kit that includes a WI-FI router, a terminal, and a mounting tripod, and costs ($2500) premium service.
Will Starlink bring up different pricing strategies in Nigeria and least developed countries, the way Netflix does? It remains to be seen. If not, those who can afford Starlink would appear to be urban, socially upward people who already had access to the internet anyway.
In conclusion, a vast and high-speed internet connection like Starlink could help Nigerian Small businesses by giving them wider access to both local and global markets, also better planning and decision making. This also provides limitless growth opportunities to Nigerian businesses, especially small businesses in terms of marketing, innovation, information, and competition. These are a few impacts of Starlink on Nigeria founders/startups.
Have more in mind? Feel free to share with us in the comment section.
