Starlink slashes price in move to lure Nigerian users

AFRICAN BUSINESS AND ECONOMYOctober 4, 2023 at 11:37 AM UTC

Starlink, the satellite internet service owned by Elon Musk's SpaceX, is taking steps to make its service more accessible in Nigeria. The company is reducing the price of its kit by 20%, dropping it from ₦378,000 ($378) to ₦299,000 ($299). Additionally, Starlink is partnering with Jumia, Nigeria's leading e-commerce platform, to expand its distribution channels. Despite ambitious sales targets of $12 billion set for 2022, the company reported revenue of only $1.4 billion for that year, according to the Wall Street Journal.

Starlink ventured into Africa in 2023 with the aim of providing high-speed internet access to remote areas. The service offers a download speed of 100Mbps, which is approximately ten times faster than the average download speed for mobile internet in sub-Saharan Africa, where broadband penetration remains relatively low. This high-speed capability positions Starlink as a promising solution for the African market.

However, the adoption of Starlink in Africa has encountered various challenges, including concerns about affordability and regulatory hurdles. While the service holds great potential for improving internet connectivity in the region, addressing these issues will be essential to its success and widespread adoption across the continent.

Key Takeaways

Nigerians continue to face challenges with poor internet speeds, with the average quality of internet speed deteriorating to just 10.9% in 2023. Despite the 20% discount offered by Starlink, the cost of the service remains prohibitive for the majority of the population. Affordability is not the only barrier to Starlink's adoption in Africa, however. The service has encountered more regulatory obstacles than initially anticipated. In South Africa, the government has imposed a ban on the import, sale, and usage of Starlink, making it officially unavailable. Similarly, in countries like Zimbabwe and Botswana, authorities have expressed concerns and warnings about the service. These regulatory roadblocks, along with affordability issues, have posed significant challenges for Starlink's expansion and adoption in Africa, despite the potential benefits it could bring to the continent's internet connectivity landscape.