By Ibrahym El-Caleel
StarLink is a distant competitor to our telcos. The product price edges it out of immediate competition with MTN, Airtel and co. However, it is good that it is already here. In fact it will definitely gain a fair share from some businesses who have been looking for an alternative to the existing telcos.
Setting up StarLink costs more than N400,000. Personally I think it will be a better buy for businesses who spend about 60-75% of this amount for internet access. They will be bidding farewell to the periodic disappointments we experience from the contemporary telcos.
Market is dynamic. As StarLink takes some time in Nigeria, it will be ambitious about increasing its market share. It will be innovative about coming up with something that will be relatively affordable for the teeming internet subscribers. This is when the true competition will begin. For now, the penetration will be low because at the moment a lot of Nigerians are quite very rich. The consumer conversion will be minimal.
MTN began in Nigeria with N1,500 airtime card only. And it expires in 7 days. If you don’t use the airtime after 7 days, you have to buy another one. This was the case c.2001. Fast forward to 2021, you can have a N100 airtime and keep it for one year if you so wish. StarLink might have to develop something cheaper to get more subscribers onboard. If your things are expensive, you can sell it and make money in Nigeria. If they are affordable to many, you make quicker turnover, bigger sales, (arguably) more profit. This is Nigerian market.