Starlink to compete with MTN, Airtel and Glo as it set for direct-to-phone launch in 2024

Mobile phones will be able to connect directly to Starlink’s satellites soon, according to SpaceX. In a new advert page, SpaceX claims that the “Starlink Direct to Cell” service will be rolled out between 2024 and 2025. When available, Starlink will enter the same playing field as legacy telcos like MTN and Globacom. 

Text (SMS) service will be available in 2024 while voice (calls) and data capabilities will be accessible the following year. The page also stated that an Internet of Things (IoT) service will be available in 2025 too. Until now, using Starlink’s satellite internet service required a hardware kit which currently costs N299,0000. The monthly subscription charge is N38,000. 

Another interesting aspect of this development is that this direct-to-cell service will work with 4G and 5G-enabled phones. This automatically cuts out 2G and 3G phones from the mix. Given that Nigeria and the rest of Africa still have a sizable population of 3G and 2G devices, one wonders if Starlink can mount serious pressure on MTN and Glo without 2G and 3G phone users. 

For LTE phones, SpaceX promises limitless connectivity across the world. While this is a proposition the telcos have struggled to deliver, it will be great to see just how Starlink strives to achieve this. To make the direct-to-cell offering possible, SpaceX’s promotional page states that Starlink’s satellite with the forthcoming capabilities “have an advanced eNodeB modem onboard that acts like a cellphone tower in space, allowing network integration similar to a standard roaming partner.” 

The promotional page further mentioned that this new version of Starlink satellite internet service will aggressively tackle the issue of dead ones. This loosely translates into poor connectivity in remote areas. In Nigeria and many African countries, rural areas typically lack a strong internet connection. 

Corroborating the above assertion is an article from satellite communications expert, Marcin Frackiewicz where he writes “The digital divide in Africa is largely a result of inadequate infrastructure, limited access to technology, and high costs of access. This has resulted in a significant gap between those who have access to the internet and those who do not. This gap is particularly evident in rural areas, where access to the internet is limited or non-existent.”

Starlink seeks to change that for good, though the affordability issue is a major obstacle.  

Read also: SpaceX’s Starlink garnered 1.5m global subscribers in 2022, falling short of 20m projections

Can Nigerians look beyond the cost factor and adopt Starlinks en masse?

For many Nigerians, a Starlink hardware kit and a pricey monthly subscription is a luxury. The current economic situation has drastically reduced the average citizen’s purchasing power. Petrol, transportation, food, and other essential items now cost way more than before. 

As such, it is easy to argue that Starlink will have a difficult time convincing Nigerians why they should ditch legacy telcos. Besides, the Space X company’s internet connectivity is far from perfect. A common complaint among those who have acquired the hardware kit is that they experience poor internet connection whenever it rains. A recent tweet justifies this claim.  

To thrive in Nigeria, businesses must set prices that match the current economic climate. Starlink looks to become mainstream, but it currently costs more than the common Nigerian can afford. As mentioned, the purchasing power of Nigerians declines daily. Why pay nearly N300,000 and a monthly fee of N38,000 when the SIM cards of telcos like MTN and Airtel sell for a significantly lower amount, if not free? 

Although SpaceX recently crashed the retail price of Starlink’s hardware kit to attract more buyers, it may need to further reduce the price if it intends to be seen as a major threat by the big four: MTN, GLO, 9mobile, and Airtel. Doing that should send the right signal to potential customers.