Botswana woke up to the news yesterday that Starlinkthe online satellite company from Elon Muskhad finally been granted a license to operate in the country.
The addition of Starlink could make the telecom space a bit more competitive in the long run.
Current key operators in Botswana include; Mascom Wireless, Botswana orangeand Botswana Telecommunications Corporation (BTC).
Mascom Wireless currently leads the space with a 43% market share of mobile phone subscribers and 43.5% of fixed broadband users. Orange has it 39% on mobile and 30% on fixed broadband.
BTC comes with only 18% mobile market share and 25.9% market share of broadband.
Potential impact of Starlink
Starlink has the potential to disrupt the telecommunications sector in Botswana. With its ability to provide high-speed Internet access to remote and underserved areas, Starlink could increase Internet penetration in the region.
The company’s ability to provide high-speed Internet access could also lead to a shift in consumer behavior, with more people choosing satellite Internet over traditional telecommunications services.
However, affordability could be a barrier for prospective users in Botswana.
The average cost for broadband in Botswana is on average approx 782 Sell. Starlink’s monthly unsubsidized plan is valid $120 which would translate to approx 1633.18 Sell which is almost double.
The development of Starlink cannot be understated
Starlink’s capabilities cannot be underestimated by competitors. The service is now licensed to 12 African countries and it is they work in 8 from them.
In Nigeria, the service is now the third largest internet service provider after the acquisition more than 23,000 users in less than 2 years.
What happens next?
Although Starlink has been licensed, the company has yet to receive the green light to begin operations.
Once launched, Starlink could subsidize the price of its hardware and monthly services to quickly acquire customers. It remains to be seen if users in Botswana will switch to Starlink once it is live. If Nigeria is any indicator, Starlink could give its broadband competitors a run for their money.
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