SpaceX is gearing up to enable mobile phones to connect directly to its Starlink satellites, with the “Starlink Direct to Cell” service set to launch between 2024 and 2025. This move will position Starlink as a competitor to established telecom companies like MTN and Globacom.
The timeline for this service rollout is as follows: SMS service will be available in 2024, while voice calls and data capabilities will follow in the subsequent year. Additionally, an Internet of Things (IoT) service is expected in 2025. Up until now, using Starlink’s satellite internet service required a hardware kit priced at N299,000, along with a monthly subscription charge of N38,000.
A noteworthy aspect of this development is that the direct-to-cell service will be compatible with 4G and 5G-enabled phones, excluding 2G and 3G devices. Given that a substantial portion of Nigeria and Africa’s population still uses 2G and 3G devices, it raises questions about Starlink’s ability to compete with MTN and Glo.
For LTE phones, SpaceX promises unlimited global connectivity, a challenge traditional telcos have struggled with. The direct-to-cell offering will be made possible through Starlink’s advanced eNodeB modem onboard its satellites, functioning like a cell tower in space, enabling network integration akin to a standard roaming partner.
Furthermore, Starlink aims to address connectivity issues in remote areas, where internet access is typically weak. This is particularly relevant in rural areas across Nigeria and Africa, where internet access remains limited or non-existent.
Read Also: Starlink Cuts Hardware Prices in Nigeria by 21%
Nigerians Embracing Starlink Direct to Cell Despite Costs?
However, while Starlink seeks to bridge this digital divide, affordability remains a significant obstacle. For many Nigerians, a Starlink hardware kit and the associated monthly subscription are considered luxuries, especially in the face of economic challenges.
Rising costs of essential commodities, transportation, and food have eroded the average citizen’s purchasing power.
Starlink’s internet connectivity is not without issues, as users have reported poor connectivity during rainfall. This raises concerns about the service’s reliability.
To gain widespread adoption in Nigeria, Starlink may need to adjust its pricing strategy to align with the current economic climate.
Conclusion
Despite recent reductions in the retail price of Starlink’s hardware kit, it may need to further lower costs to become a major contender against established telcos like MTN, GLO, 9mobile, and Airtel. This pricing adjustment would be vital to attract potential customers and gain a competitive edge.
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