Botswana woke up to the news yesterday that Starlink, the internet satellite company from Elon Musk, had finally been granted a license to operate in the country.
The addition of Starlink could make the telecom space a little more competitive in the long term.
The current key operators in Botswana include Mascom Wireless, Orange Botswana, and Botswana Telecommunications Corporation (BTC).
Mascom Wireless currently leads the space with a 43% market share of mobile subscribers and 43.5% of fixed broadband users. Orange has 39% in the mobile and 30% in fixed broadband.
BTC comes in with just 18% market share of mobile and 25.9% market share of broadband.
Potential Impact of Starlink
Starlink has the potential to disrupt the telecom 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 opting for satellite internet over traditional telecom services.
However, affordability could be a hurdle for prospective users in Botswana.
The average cost for broadband in Botswana averages about 782 Pula. Starlink's monthly unsubsidized plan runs for $120 which would translate to about 1633.18 Pula which is almost double.
Starlink's Growth Can't Be Understated
Starlink's potential can't be underestimated by competitors. The service is now licensed in 12 African countries and is operational in 8 of them.
In Nigeria, the service is now the third largest internet service provider after acquiring more than 23,000 users in less than 2 years.
What Happens Next
Although Starlink has been licensed, the company hasn't been given the green light yet to start operations.
Once launched, Starlink could subsidize the price of its hardware and monthly services to acquire customers quickly. It remains to be seen whether users in Botswana will switch to Starlink once it's active. If Nigeria is any indicator, Starlink could give broadband competitors a run for their money.
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